Question 1

A market supply curve is determined by

Accepted Answer

A)   vertically summing individual supply curves.
B)   horizontally summing individual supply curves.
C)   finding the average quantity supplied by sellers at each possible price.
D)   finding the average price at which sellers are willing and able to sell a particular quantity of the good.E) A) and B)
F) C) and D)

Question 2

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Accepted Answer

A) True 
 B)False

Question 3

Figure 4-18 
-Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Accepted Answer

A)   $15 and 200 units.
B)   $25 and 600 units.
C)   $25 and 400 units.
D)   $35 and 200 units.E) None of the above
F) All of the above

Question 4

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Accepted Answer

The demand...

Question 5

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Accepted Answer

A)   shifts to the right.
B)   shifts to the left.
C)   shifts either to the right or to the left, but we cannot determine the direction of the shift from the given information.
D)   will not shift; rather, the demand curve for Mustangs will shift to the right next month.E) None of the above
F) A) and B)

Question 6

If, at the current price, there is a surplus 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 D)

Question 7

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards SUPs)  at each price of SUPs, then

Accepted Answer

A)   we will observe a movement downward and to the right along the demand curve for SUPs.
B)   we will observe a movement upward and to the left along the demand curve for SUPs.
C)   the demand curve for SUPs will shift to the right.
D)   the demand curve for SUPs will shift to the left.E) None of the above
F) All of the above

Question 8

Figure 4-22 
-Refer to Figure 4-22. At a price of $24, 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) None of the above
F) A) and B)

Question 9

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 10

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Accepted Answer

A)   fall in six months but not now.
B)   increase in six months when the price goes up.
C)   fall now.
D)   increase now to meet as much demand as possible.E) B) and C)
F) A) and B)

Question 11

Another term for equilibrium price is

Accepted Answer

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

Question 12

A rightward shift of a supply curve is called an)

Accepted Answer

A)   increase in supply.
B)   decrease in supply.
C)   decrease in quantity supplied.
D)   increase in quantity supplied.E) B) and C)
F) None of the above

Question 13

Figure 4-27

-Refer to Figure 4-27. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Accepted Answer

A)   Panel a) 
B)   Panel b) 
C)   Panel c) 
D)   Panel d) E) A) and D)
F) A) and C)

Question 14

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) All of the above
F) A) and B)

Question 15

Figure 4-28 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.

Accepted Answer

The answer of Figure 4-28 
-Refer to Figure 4-28. Using...

Question 16

A yard sale is an example of a market.

Accepted Answer

A) True 
 B)False

Question 17

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 B)
F) None of the above

Question 18

If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?

Accepted Answer

A)   a decrease in the price of Miracle Whip
B)   an increase in the price of mayonnaise
C)   a decrease in the price of mayonnaise
D)   Both a and b are correct.E) None of the above
F) A) and D)

Question 19

The highest form of competition is called

Accepted Answer

A)   absolute competition.
B)   cutthroat competition.
C)   perfect competition.
D)   market competition.E) A) and C)
F) All of the above

Question 20

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

Accepted Answer

A)   an increase in the price of wool shirts and a decrease in the price of raw cotton
B)   a decrease in the price of wool shirts and a decrease in the price of raw cotton
C)   an increase in the price of wool shirts and an increase in the price of raw cotton
D)   a decrease in the price of wool shirts and an increase in the price of raw cottonE) A) and D)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Correct Answer
verified

The highest form of competition is called

Correct Answer
verified

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

Correct Answer
verified

A market supply curve is determined by

Correct Answer
verified

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Correct Answer
verified

A rightward shift of a supply curve is called an)

Correct Answer
verified

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct Answer
verified

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards SUPs) at each price of SUPs, then

Correct Answer
verified

Figure 4-27 -Refer to Figure 4-27. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22. At a price of $24, there is a

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Correct Answer
verified

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.

Correct Answer
verified

If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?

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

A yard sale is an example of a market.

Correct Answer
verified

Another term for equilibrium price is

Correct Answer
verified

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

Correct Answer
verified

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Correct Answer
verified

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Correct AnswerverifiedShow Answer

The highest form of competition is called

Correct AnswerverifiedShow Answer

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

Correct AnswerverifiedShow Answer

A market supply curve is determined by

Correct AnswerverifiedShow Answer

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Correct AnswerverifiedShow Answer

A rightward shift of a supply curve is called an)

Correct AnswerverifiedShow Answer

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Correct AnswerverifiedShow Answer

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards SUPs) at each price of SUPs, then

Correct AnswerverifiedShow Answer

Figure 4-27 -Refer to Figure 4-27. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. At a price of $24, there is a

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Correct AnswerverifiedShow Answer

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.

Correct AnswerverifiedShow Answer

If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?

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

A yard sale is an example of a market.

Correct AnswerverifiedShow Answer

Another term for equilibrium price is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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The demand...
View Answer

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Correct Answer
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