Question 1

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A)   today's price of gasoline.
B)   the expected future price of gasoline.
C)   the number of buyers of gasoline.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 2

If the demand for a good falls when income falls, then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 3

A surplus exists in a market if

Accepted Answer

A)   there is an excess demand for the good.
B)   quantity demanded exceeds quantity supplied.
C)   the current price is above its equilibrium price.
D)   All of the above are correct.E) B) and D)
F) A) and C)

Question 4

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:
 
-Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $30, then there will be

Accepted Answer

A)   a shortage of 300 tickets.
B)   a surplus of 300 tickets.
C)   600 tickets sold.
D)   600 tickets unsold.E) None of the above
F) B) and D)

Question 5

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 6

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Accepted Answer

A)   applies to most goods in the economy.
B)   is represented by a downward-sloping demand curve.
C)   is referred to as the law of demand.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 7

When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.

Accepted Answer

A) True 
 B)False

Question 8

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A)   income varies.
B)   price varies.
C)   price of the nearest substitute good varies.
D)   supply varies.E) A) and C)
F) A) and B)

Question 9

In a market economy, supply and demand are important because they

Accepted Answer

A)   are direct policy tools used by government agencies to regulate the economy.
B)   illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium.
C)   can be used to predict the impact on the economy of various events and policies.
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 10

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Accepted Answer

A) True 
 B)False

Question 11

The law of supply states that, other things equal, an increase in

Accepted Answer

A)   price causes quantity supplied to increase.
B)   price causes quantity supplied to decrease.
C)   quantity supplied causes price to increase.
D)   quantity supplied causes price to decrease.E) B) and C)
F) All of the above

Question 12

Figure 4-22 
-Refer to Figure 4-22. At a price of $8, there is a

Accepted Answer

A)   surplus of 4 units.
B)   surplus of 8 units.
C)   shortage of 4 units.
D)   shortage of 8 units.E) C) and D)
F) All of the above

Question 13

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

Accepted Answer

A)   a freeze in Florida
B)   a technological advance that allows oranges to ripen faster
C)   a decrease in the price of apples
D)   an announcement by the FDA that oranges prevent heart diseaseE) B) and D)
F) None of the above

Question 14

Figure 4-17 
-Refer to Figure 4-17. At a price of

Accepted Answer

A)   $2, there is a surplus of 6 units.
B)   $5, there is a surplus of 25 units.
C)   $5, there is a shortage of $25.
D)   $7, there is a surplus of 4 units.E) A) and B)
F) B) and D)

Question 15

When the price of a good or service changes,

Accepted Answer

A)   the supply curve shifts in the opposite direction.
B)   the demand curve shifts in the opposite direction.
C)   the demand curve shifts in the same direction.
D)   there is a movement along a given demand curve.E) All of the above
F) None of the above

Question 16

Which of the following might cause the demand curve for an inferior good to shift to the left?

Accepted Answer

A)   a decrease in income
B)   an increase in the price of a substitute
C)   an increase in the price of a complement
D)   None of the above is correct.E) B) and C)
F) None of the above

Question 17

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 DVDs?

Accepted Answer

A)   an increase in the price of DVDs
B)   a decrease in the price of DVD players
C)   a change in consumer preferences toward watching movies in movie theaters rather than at home
D)   an expectation by buyers that their incomes will increase in the very near futureE) B) and C)
F) A) and D)

Question 18

If a good is inferior, then an increase in income will result in a(n)

Accepted Answer

A)   increase in the demand for the good.
B)   decrease in the demand for the good.
C)   movement down and to the right along the demand curve for the good.
D)   movement up and to the left along the demand curve for the good.E) B) and D)
F) A) and B)

Question 19

A likely example of substitute goods for most people would be

Accepted Answer

A)   tables and chairs.
B)   bicycles and helmets.
C)   apple juice and orange juice.
D)   coffee and sugar.E) B) and D)
F) C) and D)

Question 20

Figure 4-20 
-Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)   $15 and 400 units.
B)   $20 and 600 units.
C)   $25 and 500 units.
D)   $25 and 800 units.E) A) and B)
F) C) and D)

Exam 4: The Market Forces of Supply and Demand

Today's supply curve for gasoline could shift in response to a change in

Correct Answer
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When the price of a good or service changes,

Correct Answer
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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 DVDs?

Correct Answer
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Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand A in the market for oranges in the United States?

Correct Answer
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A likely example of substitute goods for most people would be

Correct Answer
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When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.

Correct Answer
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If a good is inferior, then an increase in income will result in a(n)

Correct Answer
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Which of the following might cause the demand curve for an inferior good to shift to the left?

Correct Answer
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A surplus exists in a market if

Correct Answer
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"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Correct Answer
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Correct Answer
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A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Correct Answer
verified

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct Answer
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Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Correct Answer
verified

The law of supply states that, other things equal, an increase in

Correct Answer
verified

A market demand curve shows how the total quantity demanded of a good varies as

Correct Answer
verified

In a market economy, supply and demand are important because they

Correct Answer
verified

If the demand for a good falls when income falls, then the good is called an inferior good.

Correct Answer
verified

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22. At a price of $8, there is a

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Today's supply curve for gasoline could shift in response to a change in

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

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 DVDs?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.

Correct AnswerverifiedShow Answer

If a good is inferior, then an increase in income will result in a(n)

Correct AnswerverifiedShow Answer

Which of the following might cause the demand curve for an inferior good to shift to the left?

Correct AnswerverifiedShow Answer

A surplus exists in a market if

Correct AnswerverifiedShow Answer

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct AnswerverifiedShow Answer

Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Correct AnswerverifiedShow Answer

The law of supply states that, other things equal, an increase in

Correct AnswerverifiedShow Answer

A market demand curve shows how the total quantity demanded of a good varies as

Correct AnswerverifiedShow Answer

In a market economy, supply and demand are important because they

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls, then the good is called an inferior good.

Correct AnswerverifiedShow Answer

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. At a price of $8, there is a

Correct AnswerverifiedShow Answer

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