Question 1

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Accepted Answer

A)  Students would purchase fewer than 750 cups per day.
B)  Student would continue to purchase 750 cups per day.
C)  Students would purchase more than 750 cups per day.
D)  We do not have enough information to answer this question.E) A) and B)
F) A) and C)

Question 2

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​ 
-Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 3

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Accepted Answer

A)  law of supply.
B)  law of demand.
C)  difference between normal and inferior goods.
D)  difference between substitute and complement goods.E) B) and C)
F) C) and D)

Question 4

The highest form of competition is called

Accepted Answer

A)  absolute competition.
B)  cutthroat competition.
C)  perfect competition.
D)  market competition.E) C) and D)
F) None of the above

Question 5

When we move along a given demand curve,

Accepted Answer

A)  only price is held constant.
B)  income and price are held constant.
C)  all nonprice determinants of demand are held constant.
D)  all determinants of quantity demanded are held constant.E) All of the above
F) B) and D)

Question 6

If, at the current price, there is a shortage of a good, then

Accepted Answer

A)  sellers are producing more than buyers wish to buy.
B)  the market must be in equilibrium.
C)  the price is below the equilibrium price.
D)  quantity demanded equals quantity supplied.E) A) and D)
F) B) and C)

Question 7

The two words economists use most often are

Accepted Answer

A)  inflation and trade.
B)  supply and demand.
C)  competition and prices.
D)  markets and equilibrium.E) A) and C)
F) B) and C)

Question 8

Table 4-3 
-Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is

Accepted Answer

A)  4 units.
B)  7.75 units.
C)  14 units.
D)  31 units.E) B) and D)
F) B) and C)

Question 9

For a market for a good or service to exist, there must be a

Accepted Answer

A)  group of buyers and sellers.
B)  specific time and place at which the good or service is traded.
C)  high degree of organization present.
D)  All of the above are correct.E) A) and D)
F) A) and C)

Question 10

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Accepted Answer

A)  an increase in the price of tennis balls
B)  a decrease in the price of tennis racquets
C)  an expectation by buyers that their incomes will increase in the very near future
D)  a decrease in the number of people in the United States under age 70E) C) and D)
F) A) and D)

Question 11

Which of the following might cause the supply curve for an inferior good to shift to the right?

Accepted Answer

A)  an increase in input prices
B)  a decrease in consumer income
C)  an improvement in production technology that makes production of the good more profitable
D)  a decrease in the number of sellers in the marketE) B) and C)
F) A) and D)

Question 12

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause a(n)

Accepted Answer

A)  increase in the demand for wine, increasing price.
B)  increase in the supply of wine, decreasing price.
C)  decrease in the demand for wine, decreasing price.
D)  decrease in the supply of wine, increasing price.E) A) and B)
F) A) and C)

Question 13

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Accepted Answer

A)  is greater than the quantity that sellers are willing and able to sell.
B)  exactly equals the quantity that sellers are willing and able to sell.
C)  is less than the quantity that sellers are willing and able to sell.
D)  Either a)  or c)  could be correct.E) None of the above
F) B) and C)

Question 14

A supply schedule is a table that shows the relationship between

Accepted Answer

A)  price and quantity supplied.
B)  input costs and quantity supplied.
C)  quantity demanded and quantity supplied.
D)  profit and quantity supplied.E) B) and D)
F) A) and C)

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 C)
F) A) and B)

Question 16

Figure 4-19 
-Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)  $10 and 30 units.
B)  $10 and 50 units.
C)  $10 and 70 units.
D)  $4 and 50 units.E) A) and B)
F) A) and C)

Question 17

At the equilibrium price, quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-9
Panel (a) 
Panel (b)   
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (a) , the arrows are consistent with which of the following events?

Accepted Answer

A)  The price of marijuana, a complement to cigarettes, increased.
B)  Mandatory health warnings were placed on cigarette packages.
C)  Several foreign countries banned U.S. cigarettes in their countries.
D)  A tax was placed on cigarettes.E) A) and B)
F) A) and C)

Question 19

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

Accepted Answer

A)  Point A to Point B
B)  Point C to Point B
C)  Point C to Point D
D)  Point A to Point DE) A) and D)
F) B) and D)

Question 20

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

At the equilibrium price, quantity demanded is equal to quantity supplied.

Correct Answer
verified

Correct Answer
verified

Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (a) , the arrows are consistent with which of the following events?

Correct Answer
verified

Figure 4-19 -Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Correct Answer
verified

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Correct Answer
verified

When we move along a given demand curve,

Correct Answer
verified

For a market for a good or service to exist, there must be a

Correct Answer
verified

Which of the following might cause the supply curve for an inferior good to shift to the right?

Correct Answer
verified

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Correct Answer
verified

A supply schedule is a table that shows the relationship between

Correct Answer
verified

The highest form of competition is called

Correct Answer
verified

A shortage is the same as an excess demand.

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

Correct Answer
verified

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Correct Answer
verified

If, at the current price, there is a shortage of a good, then

Correct Answer
verified

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

Correct Answer
verified

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is

Correct Answer
verified

The two words economists use most often are

Correct Answer
verified

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause a(n)

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

At the equilibrium price, quantity demanded is equal to quantity supplied.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (a) , the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

Figure 4-19 -Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Correct AnswerverifiedShow Answer

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

Correct AnswerverifiedShow Answer

For a market for a good or service to exist, there must be a

Correct AnswerverifiedShow Answer

Which of the following might cause the supply curve for an inferior good to shift to the right?

Correct AnswerverifiedShow Answer

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Correct AnswerverifiedShow Answer

A supply schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

The highest form of competition is called

Correct AnswerverifiedShow Answer

A shortage is the same as an excess demand.

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for ballroom dancing lessons resulting from the introduction of a popular new television show called "Dancing with the Stars"?

Correct AnswerverifiedShow Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Correct AnswerverifiedShow Answer

If, at the current price, there is a shortage of a good, then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is

Correct AnswerverifiedShow Answer

The two words economists use most often are

Correct AnswerverifiedShow Answer

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause a(n)

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

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