Question 1

For a market for a good or service to exist, there must be a

Accepted Answer

A) group of buyers and sellers. 
B) specific time and place at which the good or service is traded. 
C) high degree of organization present. 
D) All of the above are correct. 
A) group of buyers and sellers. 
B) specific time and place at which the good or service is traded. 
C) high degree of organization present. 
D) All of the above are correct.

Question 2

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 3

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 4

An increase in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 5

If toast and butter are complements, then which of the following would increase the demand for toast?

Accepted Answer

A) a decrease in the price of toast 
B) a decrease in the price of butter 
C) an increase in the price of butter 
D) Both a and b are correct. 
A) a decrease in the price of toast 
B) a decrease in the price of butter 
C) an increase in the price of butter 
D) Both a and b are correct.

Question 6

Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the

Accepted Answer

A) market demand curve. 
B) market supply curve. 
C) equilibrium curve. 
D) surplus or shortage depending on market conditions. 
A) market demand curve. 
B) market supply curve. 
C) equilibrium curve. 
D) surplus or shortage depending on market conditions.

Question 7

Figure 4-18  
-Refer to Figure 4-18. At the equilibrium price,

Accepted Answer

A) 200 units would be supplied and demanded. 
B) 400 units would be supplied and demanded. 
C) 600 units would be supplied and demanded. 
D) 600 units would be supplied, but only 200 would be demanded. 
A) 200 units would be supplied and demanded. 
B) 400 units would be supplied and demanded. 
C) 600 units would be supplied and demanded. 
D) 600 units would be supplied, but only 200 would be demanded.

Question 8

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​  
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a

Question 9

Figure 4-8  
-Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Accepted Answer

A) a movement along D2 from point A to point B 
B) a movement along D2 from point B to point A 
C) a shift from D1 to D2 
D) a shift from D2 to D1 
A) a movement along D2 from point A to point B 
B) a movement along D2 from point B to point A 
C) a shift from D1 to D2 
D) a shift from D2 to D1

Question 10

If something happens to alter the quantity demanded at any given price, then

Accepted Answer

A) the demand curve becomes steeper. 
B) the demand curve becomes flatter. 
C) the demand curve shifts. 
D) we move along the demand curve. 
A) the demand curve becomes steeper. 
B) the demand curve becomes flatter. 
C) the demand curve shifts. 
D) we move along the demand curve.

Question 11

When quantity demanded decreases at every possible price, the demand curve has

Accepted Answer

A) shifted to the left. 
B) shifted to the right. 
C) not shifted; rather, we have moved along the demand curve to a new point on the same curve. 
D) not shifted; rather, the demand curve has become flatter. 
A) shifted to the left. 
B) shifted to the right. 
C) not shifted; rather, we have moved along the demand curve to a new point on the same curve. 
D) not shifted; rather, the demand curve has become flatter.

Question 12

Which of the following statements is correct?

Accepted Answer

A) Buyers determine supply, and sellers determine demand. 
B) Buyers determine demand, and sellers determine supply. 
C) Buyers determine both demand and supply. 
D) Sellers determine both demand and supply. 
A) Buyers determine supply, and sellers determine demand. 
B) Buyers determine demand, and sellers determine supply. 
C) Buyers determine both demand and supply. 
D) Sellers determine both demand and supply.

Question 13

When quantity demanded has increased at every price, it might be because

Accepted Answer

A) the number of buyers in the market has decreased. 
B) income has increased, and the good is an inferior good. 
C) the costs incurred by sellers producing the good have decreased. 
D) the price of a complementary good has decreased. 
A) the number of buyers in the market has decreased. 
B) income has increased, and the good is an inferior good. 
C) the costs incurred by sellers producing the good have decreased. 
D) the price of a complementary good has decreased.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A decrease in input costs to firms in a market will result in a(n)

Accepted Answer

A) decrease in equilibrium price and an increase in equilibrium quantity. 
B) decrease in equilibrium price and a decrease in equilibrium quantity. 
C) increase in equilibrium price and a decrease in equilibrium quantity. 
D) increase in equilibrium price and an increase in equilibrium quantity. 
A) decrease in equilibrium price and an increase in equilibrium quantity. 
B) decrease in equilibrium price and a decrease in equilibrium quantity. 
C) increase in equilibrium price and a decrease in equilibrium quantity. 
D) increase in equilibrium price and an increase in equilibrium quantity.

Question 16

When we move along a given demand curve,

Accepted Answer

A) only price is held constant. 
B) income and price are held constant. 
C) all nonprice determinants of demand are held constant. 
D) all determinants of quantity demanded are held constant. 
A) only price is held constant. 
B) income and price are held constant. 
C) all nonprice determinants of demand are held constant. 
D) all determinants of quantity demanded are held constant.

Question 17

A newspaper's classified ads are an example of a market.

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. What is the equilibrium price in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 19

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. 
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.

Question 20

Supply and demand together determine the price and quantity of a good sold in a market.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

For a market for a good or service to exist, there must be a

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

It is not possible for demand and supply to shift at the same time.

An increase in demand shifts the demand curve to the left.

If toast and butter are complements, then which of the following would increase the demand for toast?

Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

If something happens to alter the quantity demanded at any given price, then

When quantity demanded decreases at every possible price, the demand curve has

Which of the following statements is correct?

When quantity demanded has increased at every price, it might be because

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

A decrease in input costs to firms in a market will result in a(n)

When we move along a given demand curve,

A newspaper's classified ads are an example of a market.

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

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

Supply and demand together determine the price and quantity of a good sold in a market.

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

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?