Question 1

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 2

Table 4-4  
-Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 10 units. 
A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 10 units.

Question 3

If the number of sellers in a market increases, then the

Accepted Answer

A) demand in that market will increase. 
B) supply in that market will increase. 
C) supply in that market will decrease. 
D) demand in that market will decrease. 
A) demand in that market will increase. 
B) supply in that market will increase. 
C) supply in that market will decrease. 
D) demand in that market will decrease.

Question 4

Table 4-8  
-Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Accepted Answer

A) 6 units. 
B) 12 units. 
C) 18 units. 
D) 24 units. 
A) 6 units. 
B) 12 units. 
C) 18 units. 
D) 24 units.

Question 5

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 6

Table 4-6  
-Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Accepted Answer

A) 4 units. 
B) 7.5 units. 
C) 10 units. 
D) 30 units. 
A) 4 units. 
B) 7.5 units. 
C) 10 units. 
D) 30 units.

Question 7

Table 4-1  
-Refer to Table 4-1. Which of the following illustrates the market demand curve?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.  
-Refer to Table 4-15. Assume these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price. If the price is $6 per case, is there a shortage or surplus, and how large is the shortage or surplus?

Accepted Answer

There is a

Question 9

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 10

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. 
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.

Question 11

Which of the following would cause a movement along the supply curve for cupcakes?

Accepted Answer

A) an improvement in technology for commercial mixers 
B) a decrease in the price of cupcakes 
C) an increase in the price of cake flour 
D) All of the above are correct. 
A) an improvement in technology for commercial mixers 
B) a decrease in the price of cupcakes 
C) an increase in the price of cake flour 
D) All of the above are correct.

Question 12

Which of the following would increase in response to a increase in the price of ironing boards?

Accepted Answer

A) the quantity of irons demanded at each possible price of irons 
B) the equilibrium quantity of irons 
C) the equilibrium price of irons 
D) None of the above is correct. 
A) the quantity of irons demanded at each possible price of irons 
B) the equilibrium quantity of irons 
C) the equilibrium price of irons 
D) None of the above is correct.

Question 13

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

Question 14

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A) Different sellers sell identical products. 
B) There are many sellers. 
C) Sellers must accept the price the market determines. 
D) All of the above are characteristics of a perfectly competitive market. 
A) Different sellers sell identical products. 
B) There are many sellers. 
C) Sellers must accept the price the market determines. 
D) All of the above are characteristics of a perfectly competitive market.

Question 15

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

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. 
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.

Question 16

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.  
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 5.
• The slope of the supply curve is 1.
Then there is currently a

Accepted Answer

A) shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
B) shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00. 
C) surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
D) surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00. 
A) shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
B) shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00. 
C) surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
D) surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.

Question 17

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 18

Table 4-16
The following table shows the supply and demand schedules in a market.  
-Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

Accepted Answer

The price

Question 19

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Accepted Answer

A) Price will fall, and the effect on quantity is ambiguous. 
B) Price will rise, and the effect on quantity is ambiguous. 
C) Quantity will fall, and the effect on price is ambiguous. 
D) Quantity will rise, and the effect on price is ambiguous. 
A) Price will fall, and the effect on quantity is ambiguous. 
B) Price will rise, and the effect on quantity is ambiguous. 
C) Quantity will fall, and the effect on price is ambiguous. 
D) Quantity will rise, and the effect on price is ambiguous.

Question 20

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Accepted Answer

A) decrease in the demand for printers and a decrease in the quantity supplied of printers. 
B) decrease in the supply of printers and a decrease in the quantity demanded of printers. 
C) decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers. 
D) increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers. 
A) decrease in the demand for printers and a decrease in the quantity supplied of printers. 
B) decrease in the supply of printers and a decrease in the quantity demanded of printers. 
C) decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers. 
D) increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers.

Sellers respond to a shortage by cutting their prices.

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

If the number of sellers in a market increases, then the

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

A shortage exists in a market if

Which of the following would cause a movement along the supply curve for cupcakes?

Which of the following would increase in response to a increase in the price of ironing boards?

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

Which of the following is not a characteristic of a perfectly competitive market?

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Exam 4: The Market Forces of Supply and Demand

Sellers respond to a shortage by cutting their prices.

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

If the number of sellers in a market increases, then the

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

A shortage exists in a market if

Which of the following would cause a movement along the supply curve for cupcakes?

Which of the following would increase in response to a increase in the price of ironing boards?

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

Which of the following is not a characteristic of a perfectly competitive market?

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters