Question 1

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

Question 2

Each of the following is a determinant of demand except

Accepted Answer

A)   tastes.
B)   production technology.
C)   expectations.
D)   the prices of related goods.E) B) and C)
F) All of the above

Question 3

If a determinant of demand other than price changes, the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 4

A shortage exists in a market if

Accepted Answer

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

Question 5

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) A) and B)
F) A) and C)

Question 6

Table 4-3
 
-Refer to Table 4-3. For whom is the good a normal good?

Accepted Answer

A)   Bert only
B)   Grover only
C)   Bert, Ernie, Grover, and Oscar
D)   This cannot be determined from the table.E) A) and B)
F) B) and C)

Question 7

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would increase, and the equilibrium quantity would decrease.
D)   The equilibrium price would decrease, and the equilibrium quantity would increase.E) C) and D)
F) A) and C)

Question 8

Table 4-1
 
-Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)   2 units.
B)   3 units.
C)   4 units.
D)   5 units.E) A) and B)
F) A) and D)

Question 9

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

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 D)
F) None of the above

Question 10

If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

Accepted Answer

The equilibrium pric...

Question 11

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, the premature deaths of thousands of turkeys would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and C)
F) B) and C)

Question 12

At the equilibrium price, quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 13

Figure 4-4
Yasmine Mercedes
  
-Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Accepted Answer

A)   6 units.
B)   9 units.
C)   12 units.
D)   15 units.E) B) and D)
F) A) and C)

Question 14

Most markets in the economy are highly competitive.

Accepted Answer

A) True 
 B)False

Question 15

Individual supply curves are summed vertically to obtain the market supply curve.

Accepted Answer

A) True 
 B)False

Question 16

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 17

Table 4-3
 
-Refer to Table 4-3. Whose demand does not obey the law of demand?

Accepted Answer

A)   Bert's
B)   Ernie's
C)   Grover's
D)   Oscar'sE) A) and C)
F) A) and B)

Question 18

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Accepted Answer

A) True 
 B)False

Question 19

Table 4-9
 
-Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and B)
F) A) and C)

Question 20

If, at the current price, there is a shortage 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) None of the above
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

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

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

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Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

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Individual supply curves are summed vertically to obtain the market supply curve.

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Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, the premature deaths of thousands of turkeys would cause a move from

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At the equilibrium price, quantity demanded is equal to quantity supplied.

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

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Each of the following is a determinant of demand except

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Table 4-1 -Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by

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Table 4-3 -Refer to Table 4-3. For whom is the good a normal good?

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If a determinant of demand other than price changes, the demand curve shifts.

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When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

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Table 4-3 -Refer to Table 4-3. Whose demand does not obey the law of demand?

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

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A decrease in the price of sugar will shift the supply curve for cookies to the right.

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If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

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A shortage exists in a market if

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Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

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Most markets in the economy are highly competitive.

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The equilibrium pric...
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