Question 1

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

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) C) and D)

Question 2

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

Accepted Answer

A)   inferior goods.
B)   normal goods.
C)   perfectly competitive goods.
D)   durable goods.E) A) and D)
F) A) and C)

Question 4

Figure 4-22

-Refer to Figure 4-22.Panel (b) shows which of the following?

Accepted Answer

A)   a decrease in demand and a decrease in quantity supplied
B)   a decrease in demand and a decrease in supply
C)   a decrease in quantity demanded and a decrease in quantity supplied
D)   a decrease in quantity demanded and a decrease in supplyE) B) and D)
F) B) and C)

Question 5

Table 4-3
 
-Refer to Table 4-3.Whose demand does not obey the law of demand?

Accepted Answer

A)   Bert's
B)   Ernie's
C)   Grover's
D)   Oscar'sE) None of the above
F) B) and D)

Question 6

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Accepted Answer

A)   production technology
B)   expectations
C)   input prices
D)   the number of sellersE) None of the above
F) All of the above

Question 7

Figure 4-13
 
-Refer to Figure 4-13.The shift from S to S' could be caused by an

Accepted Answer

A)   increase in the price of the good.
B)   improvement in production technology.
C)   increase in income.
D)   increase in input prices.E) None of the above
F) B) and D)

Question 8

Sellers respond to a surplus by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 9

If the price of apple pies rose to $100 per pie,consumers would purchase fewer pies than if the price were $5 per pie.If the price of ice cream fell to $0.30 per scoop,consumers would purchase more ice cream than if the price were $5 per scoop.These relationships illustrate the

Accepted Answer

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

Question 10

Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve?

Accepted Answer

A)   (quantity demanded = 2, price = $1.50) 
B)   (quantity demanded = 4, price = $2.50) 
C)   (quantity demanded = 10, price = $1.00) 
D)   (quantity demanded = 16, price = $2.50) E) A) and B)
F) A) and C)

Question 11

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto-workers negotiate higher wages?

Accepted Answer

A)   Price will fall, and the effect on quantity is ambiguous.
B)   Price will rise, and the effect on quantity is ambiguous.
C)   Quantity will fall, and the effect on price is ambiguous.
D)   Quantity will rise, and the effect on price is ambiguous.E) B) and D)
F) B) and C)

Question 12

Table 4-1
 
-Refer to Table 4-1.If the market consists of Michelle and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Accepted Answer

A)   2 units.
B)   3 units.
C)   4 units.
D)   5 units.E) A) and B)
F) B) and D)

Question 13

Table 4-4
 
-Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

Accepted Answer

A)   3 units.
B)   11 units.
C)   25 units.
D)   44 units.E) A) and B)
F) A) and C)

Question 14

An increase in quantity supplied

Accepted Answer

A)   results in a movement downward and to the left along a fixed supply curve.
B)   results in a movement upward and to the right along a fixed supply curve.
C)   shifts the supply curve to the left.
D)   shifts the supply curve to the right.E) A) and D)
F) A) and B)

Question 15

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

Accepted Answer

A)   a decrease in the price of golf balls
B)   an increase in the price of green fees
C)   an expectation by buyers that their incomes will increase in the very near future
D)   a change in consumer tastes away from golf and toward tennisE) B) and C)
F) A) and D)

Question 16

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

A)   the prices of related goods
B)   income
C)   tastes
D)   the prices of the inputs used to produce the goodE) A) and D)
F) B) and D)

Question 17

If buyers today become more willing and able than before to purchase larger quantities of Vanilla Coke at each price of Vanilla Coke,then

Accepted Answer

A)   we will observe a movement downward and to the right along the demand curve for Vanilla Coke.
B)   we will observe a movement upward and to the left along the demand curve for Vanilla Coke.
C)   the demand curve for Vanilla Coke will shift to the right.
D)   the demand curve for Vanilla Coke will shift to the left.E) All of the above
F) A) and B)

Question 18

A competitive market is a market in which

Accepted Answer

A)   an auctioneer helps set prices and arrange sales.
B)   there are only a few sellers.
C)   the forces of supply and demand do not apply.
D)   no individual buyer or seller has any significant impact on the market price.E) None of the above
F) A) and D)

Question 19

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)   1 percent reduction in the quantity demanded of cigarettes.
B)   4 percent reduction in the quantity demanded of cigarettes.
C)   10 percent reduction in the quantity demanded of cigarettes.
D)   12 percent reduction in the quantity demanded of cigarettes.E) A) and B)
F) A) and C)

Question 20

If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would increase, and the equilibrium quantity would decrease.
D)   The equilibrium price would decrease, and the equilibrium quantity would increase.E) B) and C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand.

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Correct Answer
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If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

Correct Answer
verified

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Correct Answer
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An increase in quantity supplied

Correct Answer
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Figure 4-13 -Refer to Figure 4-13.The shift from S to S' could be caused by an

Correct Answer
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A competitive market is a market in which

Correct Answer
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What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto-workers negotiate higher wages?

Correct Answer
verified

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

Correct Answer
verified

Table 4-3 -Refer to Table 4-3.Whose demand does not obey the law of demand?

Correct Answer
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The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct Answer
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Correct Answer
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Which of the following is not a determinant of the demand for a particular good?

Correct Answer
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Sellers respond to a surplus by cutting their prices.

Correct Answer
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Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

Correct Answer
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Table 4-1 -Refer to Table 4-1.If the market consists of Michelle and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Correct Answer
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Figure 4-22 -Refer to Figure 4-22.Panel (b) shows which of the following?

Correct Answer
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If buyers today become more willing and able than before to purchase larger quantities of Vanilla Coke at each price of Vanilla Coke,then

Correct Answer
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Figure 4-4 -Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Correct Answer
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If the price of apple pies rose to $100 per pie,consumers would purchase fewer pies than if the price were $5 per pie.If the price of ice cream fell to $0.30 per scoop,consumers would purchase more ice cream than if the price were $5 per scoop.These relationships illustrate the

Correct Answer
verified

Table 4-4 -Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand.

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Correct AnswerverifiedShow Answer

If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

Correct AnswerverifiedShow Answer

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Correct AnswerverifiedShow Answer

An increase in quantity supplied

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13.The shift from S to S' could be caused by an

Correct AnswerverifiedShow Answer

A competitive market is a market in which

Correct AnswerverifiedShow Answer

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto-workers negotiate higher wages?

Correct AnswerverifiedShow Answer

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3.Whose demand does not obey the law of demand?

Correct AnswerverifiedShow Answer

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of the demand for a particular good?

Correct AnswerverifiedShow Answer

Sellers respond to a surplus by cutting their prices.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1.If the market consists of Michelle and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Panel (b) shows which of the following?

Correct AnswerverifiedShow Answer

If buyers today become more willing and able than before to purchase larger quantities of Vanilla Coke at each price of Vanilla Coke,then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the price of apple pies rose to $100 per pie,consumers would purchase fewer pies than if the price were $5 per pie.If the price of ice cream fell to $0.30 per scoop,consumers would purchase more ice cream than if the price were $5 per scoop.These relationships illustrate the

Correct AnswerverifiedShow Answer

Table 4-4 -Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

Correct AnswerverifiedShow Answer

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