Question 1

Holding the nonprice determinants of demand constant, a change in price would

Accepted Answer

A)   result in either a decrease in demand or an increase in demand.
B)   result in a movement along a stationary demand curve.
C)   result in a shift of supply.
D)   have no effect on the quantity demanded.E) B) and C)
F) All of the above

Question 2

Which of the following does not affect an individual's demand curve?

Accepted Answer

A)   expectations
B)   income
C)   prices of related goods
D)   the number of buyersE) All of the above
F) None of the above

Question 3

Figure 4-20 
-Refer to Figure 4-20. If the price is $10, then there would be a

Accepted Answer

A)   shortage of 400 units, and price would rise.
B)   surplus of 400 units, and price would rise.
C)   shortage of 600 units, and price would rise.
D)   surplus of 600 units, and price would rise.E) A) and B)
F) None of the above

Question 4

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Accepted Answer

The demand...

Question 5

If a seller in a competitive market chooses to charge more than the going price, then

Accepted Answer

A)   the sellers' profits must increase.
B)   the owners of the raw materials used in production would raise the prices for the raw materials.
C)   other sellers would also raise their prices.
D)   buyers will make purchases from other sellers.E) None of the above
F) B) and C)

Question 6

A movement along the supply curve might be caused by a change in

Accepted Answer

A)   production technology.
B)   input prices.
C)   expectations about future prices.
D)   the price of the good or service that is being supplied.E) A) and D)
F) A) and C)

Question 7

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 8

Figure 4-13 
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Accepted Answer

A)   4 units.
B)   6 units.
C)   12 units.
D)   18 units.E) A) and D)
F) C) and D)

Question 9

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Accepted Answer

A) True 
 B)False

Question 10

Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the

Accepted Answer

A)   market demand curve.
B)   market supply curve.
C)   equilibrium curve.
D)   surplus or shortage depending on market conditions.E) A) and D)
F) None of the above

Question 11

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Accepted Answer

A)   encourage marijuana use, and the evidence supports this argument.
B)   encourage marijuana use, but the evidence does not support this argument.
C)   discourage marijuana use, and the evidence supports this argument.
D)   discourage marijuana use, but the evidence does not support this argument.E) A) and C)
F) B) and C)

Question 12

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 13

Figure 4-7 
-Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by a(n)

Accepted Answer

A)   decrease in the price of potato chips.
B)   decrease in income, assuming that potato chips are a normal good.
C)   announcement by the FDA that potato chips cause cancer.
D)   increase in the price of a pretzels.E) B) and D)
F) B) and C)

Question 14

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Accepted Answer

The answer of Fill in the table below, showing whether...

Question 15

When quantity supplied increases at every possible price, we know that the supply curve has

Accepted Answer

A)   shifted to the left.
B)   shifted to the right.
C)   not shifted; rather, we have moved along the supply curve to a new point on the same curve.
D)   not shifted; rather, the supply curve has become flatter.E) B) and D)
F) None of the above

Question 16

Figure 4-30 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Accepted Answer

Supply shi...

Question 17

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Accepted Answer

Equilibrium price de...

Question 18

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)   willing to purchase.
B)   willing and able to purchase.
C)   willing, able, and need to purchase.
D)   able to purchase.E) B) and C)
F) A) and C)

Question 19

If the price of a good is low,

Accepted Answer

A)   firms would increase profit by increasing output.
B)   the quantity supplied of the good could be zero.
C)   the supply curve for the good will shift to the left.
D)   firms can and should raise the price of the product.E) A) and B)
F) A) and C)

Question 20

Assume Leo buys coffee beans in a competitive market. It follows that

Accepted Answer

A)   Leo has a limited number of sellers from which to buy coffee beans.
B)   Leo will negotiate with sellers whenever he buys coffee beans.
C)   Leo cannot influence the price of coffee beans even if he buys a large quantity of them.
D)   None of the above is correct.E) All of the above
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

Holding the nonprice determinants of demand constant, a change in price would

Correct Answer
verified

When quantity supplied increases at every possible price, we know that the supply curve has

Correct Answer
verified

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Correct Answer
verified

The quantity demanded of a good is the amount that buyers are

Correct Answer
verified

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Correct Answer
verified

Which of the following does not affect an individual's demand curve?

Correct Answer
verified

A movement along the supply curve might be caused by a change in

Correct Answer
verified

If a seller in a competitive market chooses to charge more than the going price, then

Correct Answer
verified

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a

Correct Answer
verified

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

It is not possible for demand and supply to shift at the same time.

Correct Answer
verified

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct Answer
verified
Supply shi...
View Answer

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Correct Answer
verified

Correct Answer
verified

If the price of a good is low,

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by a(n)

Correct Answer
verified

Assume Leo buys coffee beans in a competitive market. It follows that

Correct Answer
verified

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Correct Answer
verified

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Correct Answer
verified

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Correct Answer
verified
Equilibrium price de...
View Answer

Exam 4: The Market Forces of Supply and Demand

Holding the nonprice determinants of demand constant, a change in price would

Correct AnswerverifiedShow Answer

When quantity supplied increases at every possible price, we know that the supply curve has

Correct AnswerverifiedShow Answer

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Correct AnswerverifiedShow Answer

The quantity demanded of a good is the amount that buyers are

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Correct AnswerverifiedShow Answer

Which of the following does not affect an individual's demand curve?

Correct AnswerverifiedShow Answer

A movement along the supply curve might be caused by a change in

Correct AnswerverifiedShow Answer

If a seller in a competitive market chooses to charge more than the going price, then

Correct AnswerverifiedShow Answer

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a

Correct AnswerverifiedShow Answer

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

It is not possible for demand and supply to shift at the same time.

Correct AnswerverifiedShow Answer

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct AnswerverifiedSupply shi...View AnswerShow Answer

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the price of a good is low,

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by a(n)

Correct AnswerverifiedShow Answer

Assume Leo buys coffee beans in a competitive market. It follows that

Correct AnswerverifiedShow Answer

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Correct AnswerverifiedShow Answer

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Correct AnswerverifiedEquilibrium price de...View AnswerShow Answer

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The demand...
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Supply shi...
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Equilibrium price de...
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