Question 1

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following events could cause an increase in the supply of ceiling fans?

Accepted Answer

A)  The number of sellers of ceiling fans increases.
B)  There is an increase in the price of air conditioners, and consumers regard air conditioners and ceiling fans as substitutes.
C)  There is an increase in the price of the motor that powers ceiling fans.
D)  All of the above are correct.E) B) and D)
F) A) and B)

Question 3

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Accepted Answer

A)  Price would fall, and the effect on quantity would be ambiguous.
B)  Price would rise, and the effect on quantity would be ambiguous.
C)  Quantity would fall, and the effect on price would be ambiguous.
D)  Quantity would rise, and the effect on price would be ambiguous.E) None of the above
F) B) and C)

Question 4

Figure 4-21 
-Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

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) B) and D)
F) C) and D)

Question 5

Figure 4-21 
-Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults, assuming that Ramen noodles are an inferior good?

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 B)
F) All of the above

Question 6

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. A to DB. B) DB to DA. C) x to y. D) y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-19. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

A)  DA to DB.
B)  DB to DA.
C)  x to y.
D)  y to x.E) None of the above
F) All of the above

Question 7

Figure 4-3
 
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Accepted Answer

A)  0 units.
B)  5 units.
C)  8.33 units.
D)  25 units.E) A) and D)
F) A) and B)

Question 8

Pizza is a normal good if the demand

Accepted Answer

A)  for pizza rises when income rises.
B)  for pizza rises when the price of pizza falls.
C)  curve for pizza slopes upward.
D)  curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.E) A) and B)
F) A) and C)

Question 9

Table 4-6
   An Ineatse in Supply  A Decrense in Supply  An Inerease in Denend  A B A Decrense in Denand  C  D \begin{array} { | c | c | c | } \hline & 	ext { An Ineatse in Supply } & 	ext { A Decrense in Supply } \\hline 	ext { An Inerease in Denend } & 	ext { A } & \mathbf { B } \\hline 	ext { A Decrense in Denand } & 	ext { C } & 	ext { D } \\hline\end{array} An Inerease in Denend  A Decrense in Denand ​ An Ineatse in Supply  A  C ​ A Decrense in Supply B D ​​ 
-Refer to Table 4-6. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)  A
B)  B
C)  C
D)  D E) A) and C)
F) C) and D)

Question 10

Figure 4-22
 
-Refer to Figure 4-22. Panel (d)  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) A) and B)
F) B) and C)

Question 11

In a market, to find the total amount supplied at a particular price, we must

Accepted Answer

A)  sum the quantities that individual firms are willing and able to supply at that price.
B)  calculate the average of the quantities that individual firms are willing and able to supply at that price.
C)  sum the costs that individual firms incur to supply the product at that price.
D)  account for all determinants of demand.E) A) and C)
F) A) and B)

Question 12

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 13

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 14

If a surplus exists in a market, then we know that the actual price is

Accepted Answer

A)  above the equilibrium price, and quantity supplied is greater than quantity demanded.
B)  above the equilibrium price, and quantity demanded is greater than quantity supplied.
C)  below the equilibrium price, and quantity demanded is greater than quantity supplied.
D)  below the equilibrium price, and quantity supplied is greater than quantity demanded.E) All of the above
F) None of the above

Question 15

Figure 4-2  
-Refer to Figure 4-2. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $10 is

Accepted Answer

A)  0 units.
B)  4 units.
C)  10 units.
D)  12 units.E) B) and D)
F) A) and C)

Question 16

In a given market, how are the equilibrium price and the market-clearing price related?

Accepted Answer

A)  There is no relationship.
B)  They are the same price.
C)  The market-clearing price exceeds the equilibrium price.
D)  The equilibrium price exceeds the market-clearing price.E) C) and D)
F) A) and B)

Question 17

Which of the following events must cause equilibrium price to fall?

Accepted Answer

A)  demand increases and supply decreases
B)  demand and supply both decrease
C)  demand decreases and supply increases
D)  demand and supply both increaseE) A) and B)
F) A) and C)

Question 18

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

Accepted Answer

A)  decide which direction to shift the curve.
B)  decide whether the fires affected demand or supply.
C)  graph the shift to see the effect on equilibrium.
D)  None of the above is correct.E) None of the above
F) A) and B)

Question 19

Ashley bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the

Accepted Answer

A)  supply curve for Ashley's bread will increase.
B)  supply curve for Ashley's bread will decrease.
C)  demand curve for Ashley's bread will increase.
D)  demand curve for Ashley's bread will decrease.E) A) and B)
F) None of the above

Question 20

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)

Exam 4: The Market Forces of Supply and Demand

Ashley bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the

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

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
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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 wedding cakes resulting from a decrease in the price number of pastry chefs?

Correct Answer
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What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Correct Answer
verified

Figure 4-3 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Correct Answer
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Pizza is a normal good if the demand

Correct Answer
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Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Correct Answer
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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 Ramen noodles of a decrease in the incomes of young adults, assuming that Ramen noodles are an inferior good?

Correct Answer
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Which of the following events could cause an increase in the supply of ceiling fans?

Correct Answer
verified

If a surplus exists in a market, then we know that the actual price is

Correct Answer
verified

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

Correct Answer
verified

In a market, to find the total amount supplied at a particular price, we must

Correct Answer
verified

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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In a given market, how are the equilibrium price and the market-clearing price related?

Correct Answer
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A shortage is the same as an excess demand.

Correct Answer
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Figure 4-2 -Refer to Figure 4-2. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $10 is

Correct Answer
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Which of the following events must cause equilibrium price to fall?

Correct Answer
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Baseballs and baseball bats are substitute goods.

Correct Answer
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Exam 4: The Market Forces of Supply and Demand

Ashley bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the

Correct AnswerverifiedShow Answer

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

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

Figure 4-21 -Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Correct AnswerverifiedShow Answer

Figure 4-3 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Correct AnswerverifiedShow Answer

Pizza is a normal good if the demand

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults, assuming that Ramen noodles are an inferior good?

Correct AnswerverifiedShow Answer

Which of the following events could cause an increase in the supply of ceiling fans?

Correct AnswerverifiedShow Answer

If a surplus exists in a market, then we know that the actual price is

Correct AnswerverifiedShow Answer

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

Correct AnswerverifiedShow Answer

In a market, to find the total amount supplied at a particular price, we must

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

In a given market, how are the equilibrium price and the market-clearing price related?

Correct AnswerverifiedShow Answer

A shortage is the same as an excess demand.

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $10 is

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium price to fall?

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Baseballs and baseball bats are substitute goods.

Correct AnswerverifiedShow Answer

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