Question 1

If Max experiences a decrease in his income,then we would expect Max's demand for

Accepted Answer

A)   each good he purchases to remain unchanged.
B)   normal goods to decrease.
C)   luxury goods to increase.
D)   inferior goods to decrease.E) B) and C)
F) A) and D)

Question 2

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 3

Table 4-3
 
-Refer to Table 4-3.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Accepted Answer

A)   decreases by 1.75 units.
B)   increases by 2 units.
C)   decreases by 7 units.
D)   decreases by 24 units.E) A) and D)
F) A) and C)

Question 4

Table 4-4
 
-Refer to Table 4-4.Which supply schedules obey the law of supply?

Accepted Answer

A)   Firm A's only
B)   Firm B's,Firm C's,and Firm D's only
C)   Firm A's and Firm C's only
D)   Firm B's and Firm D's onlyE) A) and B)
F) A) and C)

Question 5

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  True

Question 6

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

Accepted Answer

A)   increase in the demand for bagels.
B)   decrease in the demand for bagels.
C)   increase in the demand for muffins.
D)   decrease in the demand for muffins.E) None of the above
F) A) and B)

Question 7

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Accepted Answer

A)   sweatpants will increase.
B)   sweatpants will decrease.
C)   shorts will increase.
D)   shorts will decrease.E) A) and B)
F) None of the above

Question 8

A market's equilibrium is the point at which the supply and demand curves intersect.

Accepted Answer

A) True 
 B)False  True

Question 9

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Accepted Answer

A)   The number of people who purchase olives decreases.
B)   Consumer income decreases,and olives are a normal good.
C)   The price of pickles decreases,and pickles are a substitute for olives.
D)   The price of olives rises.E) C) and D)
F) B) and D)

Question 10

Figure 4-15 
-Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Accepted Answer

A)   $15
B)   $20
C)   $30
D)   $35E) A) and D)
F) A) and C)

Question 11

Figure 4-14 
-Refer to Figure 4-14.At a price of

Accepted Answer

A)   $2,there is a shortage 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 shortage of 4 units.E) B) and C)
F) A) and B)

Question 12

The highest form of competition is called

Accepted Answer

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

Question 13

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 C)
F) A) and C)

Question 14

Another term for equilibrium price is

Accepted Answer

A)   dynamic price.
B)   market-clearing price.
C)   quantity-defining price.
D)   balance price.E) B) and C)
F) A) and C)

Question 15

The law of demand states that,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.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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) A) and B)

Question 17

Figure 4-10 
-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for tennis racquets?

Accepted Answer

A)   a decrease in the price of tennis balls
B)   an expectation by firms that the price of tennis racquets will increase in the very near future
C)   a decrease in the price of tennis racquet strings
D)   an improvement in technology that allows firms to use less labor in the production of tennis racquetsE) B) and C)
F) A) and D) B

Question 18

A market includes

Accepted Answer

A)   buyers only.
B)   sellers only.
C)   both buyers and sellers.
D)   the place where transactions occur but not the people involved.E) All of the above
F) None of the above

Question 19

If something happens to alter the quantity demanded at any given price,then the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following events could shift the demand curve for gasoline to the left?

Accepted Answer

A)   The income of gasoline buyers rises,and gasoline is a normal good.
B)   The income of gasoline buyers falls,and gasoline is an inferior good.
C)   Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars.
D)   The price of gasoline rises.E) All of the above
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

If Max experiences a decrease in his income,then we would expect Max's demand for

Correct AnswerverifiedShow Answer

A surplus is the same as an excess demand.

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3.If these are the only four buyers in the market,then when the price increases from $1.00 to $1.50,the market quantity demanded

Correct AnswerverifiedShow Answer

Table 4-4 -Refer to Table 4-4.Which supply schedules obey the law of supply?

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 AnswerverifiedTrue

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

Correct AnswerverifiedShow Answer

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Correct AnswerverifiedShow Answer

A market's equilibrium is the point at which the supply and demand curves intersect.

Correct AnswerverifiedTrue

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14.At a price of

Correct AnswerverifiedShow Answer

The highest form of competition is called

Correct AnswerverifiedShow Answer

A surplus exists in a market if

Correct AnswerverifiedShow Answer

Another term for equilibrium price is

Correct AnswerverifiedShow Answer

The law of demand states that,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.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for tennis racquets?

Correct AnswerverifiedB

A market includes

Correct AnswerverifiedShow Answer

If something happens to alter the quantity demanded at any given price,then the demand curve shifts.

Correct AnswerverifiedShow Answer

Which of the following events could shift the demand curve for gasoline to the left?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified