Question 1

The dictionary defines equilibrium as a situation in which forces

Accepted Answer

A)   are in balance.
B)   are the same.
C)   clash.
D)   remain constant.E) None of the above
F) A) and B)

Question 2

Figure 4-14
Panel (a) Panel (b)    Panel (c) Panel (d)   
-Refer to Figure 4-14.Which of the four panels illustrates a decrease in quantity supplied?

Accepted Answer

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

Question 3

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 4

If goods A and B are complements,then an increase in the price of good A will result in

Accepted Answer

A)   more of good A being sold.
B)   more of good B being sold.
C)   less of good B being sold.
D)   no difference in the quantity sold of either good.E) All of the above
F) A) and B)

Question 5

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices.What would we expect to occur in this market?

Accepted Answer

A)   Equilibrium price would decrease,but the impact on equilibrium quantity would be ambiguous.
B)   Equilibrium price would increase,but the impact on equilibrium quantity would be ambiguous.
C)   Equilibrium quantity would decrease,but the impact on equilibrium price would be ambiguous.
D)   Equilibrium quantity would increase,but the impact on equilibrium price would be ambiguous.E) B) and D)
F) None of the above

Question 6

Figure 4-6 
-Refer to Figure 4-6.The movement from point A to point B on the graph represents

Accepted Answer

A)   an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)   an increase in the number of suppliers.
C)   a decrease in the price of a relevant input.
D)   an increase in the price of the good that is being supplied and suppliers' response to that price change.E) A) and D)
F) B) and D)

Question 7

Figure 4-14
Panel (a) Panel (b)    Panel (c) Panel (d)   
-Refer to Figure 4-14.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) None of the above
F) B) and D)

Question 8

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Accepted Answer

A)   increases.
B)   decreases.
C)   remains constant,but we observe a movement downward and to the right along the demand curve.
D)   remains constant,but we observe a movement upward and to the left along the demand curve.E) A) and C)
F) B) and D)

Question 9

Figure 4-13
The diagram below pertains to the supply of paper in university markets. A to SB. D)  from SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-13.All else equal,an increase in the use of laptop computers for note-taking would cause a move

Accepted Answer

A)   from x to y.
B)   from y to x.
C)   from SA to SB.
D)   from SB to SA.E) B) and C)
F) All of the above

Question 10

Who gets scarce resources in a market economy?

Accepted Answer

A)   the government
B)   whoever the government decides gets them
C)   whoever wants them
D)   whoever is willing and able to pay the priceE) A) and D)
F) B) and C)

Question 11

Two goods are substitutes when a decrease in the price of one good

Accepted Answer

A)   decreases the demand for the other good.
B)   decreases the quantity demanded of the other good.
C)   increases the demand for the other good.
D)   increases the quantity demanded of the other good.E) All of the above
F) B) and D)

Question 12

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) C) and D)
F) A) and C)

Question 13

The sum of all the individual demand curves for a product is called

Accepted Answer

A)   total demand.
B)   consumer demand.
C)   aggregate demand.
D)   market demand.E) A) and B)
F) A) and C)

Question 14

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

Accepted Answer

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

Question 15

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 D)
F) All of the above

Question 16

A movement upward and to the left along a demand curve is called

Accepted Answer

A)   an increase in demand.
B)   a decrease in demand.
C)   a decrease in quantity demanded.
D)   an increase in quantity demanded.E) A) and B)
F) None of the above

Question 17

An example of a perfectly competitive market would be the

Accepted Answer

A)   cable TV market.
B)   soybean market.
C)   breakfast cereal market.
D)   shampoo market.E) A) and D)
F) A) and C)

Question 18

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

Accepted Answer

A)   Equilibrium price would decrease,but the impact on equilibrium quantity would be ambiguous.
B)   Equilibrium price would increase,but the impact on equilibrium quantity would be ambiguous.
C)   Equilibrium quantity would decrease,but the impact on equilibrium price would be ambiguous.
D)   Equilibrium quantity would increase,but the impact on equilibrium price would be ambiguous.E) A) and B)
F) A) and D)

Question 19

Which of the following events would definitely result in a higher price in the market for Snickers?

Accepted Answer

A)   Demand for Snickers increases and supply of Snickers decreases.
B)   Demand for Snickers and supply of Snickers both decrease.
C)   Demand for Snickers decreases and supply of Snickers increases.
D)   Demand for Snickers and supply of Snickers both increaseE) C) and D)
F) B) and D)

Question 20

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 C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Panel (d) shows which of the following?

Correct Answer
verified

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Correct Answer
verified

The sum of all the individual demand curves for a product is called

Correct Answer
verified

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices.What would we expect to occur in this market?

Correct Answer
verified

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

Correct Answer
verified

Which of the following events would definitely result in a higher price in the market for Snickers?

Correct Answer
verified

A movement upward and to the left along a demand curve is called

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6.The movement from point A to point B on the graph represents

Correct Answer
verified

Two goods are substitutes when a decrease in the price of one good

Correct Answer
verified

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

Correct Answer
verified

The dictionary defines equilibrium as a situation in which forces

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Which of the four panels illustrates a decrease in quantity supplied?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Figure 4-13 The diagram below pertains to the supply of paper in university markets. -Refer to Figure 4-13.All else equal,an increase in the use of laptop computers for note-taking would cause a move

Correct Answer
verified

An example of a perfectly competitive market would be the

Correct Answer
verified

If goods A and B are complements,then an increase in the price of good A will result in

Correct Answer
verified

Who gets scarce resources in a market economy?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Panel (d) shows which of the following?

Correct AnswerverifiedShow Answer

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Correct AnswerverifiedShow Answer

The sum of all the individual demand curves for a product is called

Correct AnswerverifiedShow Answer

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices.What would we expect to occur in this market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following events would definitely result in a higher price in the market for Snickers?

Correct AnswerverifiedShow Answer

A movement upward and to the left along a demand curve is called

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6.The movement from point A to point B on the graph represents

Correct AnswerverifiedShow Answer

Two goods are substitutes when a decrease in the price of one good

Correct AnswerverifiedShow Answer

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

Correct AnswerverifiedShow Answer

The dictionary defines equilibrium as a situation in which forces

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Which of the four panels illustrates a decrease in quantity supplied?

Correct AnswerverifiedShow Answer

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

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

Figure 4-13 The diagram below pertains to the supply of paper in university markets. -Refer to Figure 4-13.All else equal,an increase in the use of laptop computers for note-taking would cause a move

Correct AnswerverifiedShow Answer

An example of a perfectly competitive market would be the

Correct AnswerverifiedShow Answer

If goods A and B are complements,then an increase in the price of good A will result in

Correct AnswerverifiedShow Answer

Who gets scarce resources in a market economy?

Correct AnswerverifiedShow Answer

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