Question 1

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​  
-Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Accepted Answer

The answer of Figure 4-31
Consider the market for 2-packs of...

Question 2

Buyers and sellers who have no influence on market price are referred to as

Accepted Answer

A) market pawns. 
B) monopolists. 
C) price takers. 
D) price setters. 
A) market pawns. 
B) monopolists. 
C) price takers. 
D) price setters.

Question 3

A movement downward and to the left along a supply curve is called a(n)

Accepted Answer

A) increase in supply. 
B) decrease in supply. 
C) decrease in quantity supplied. 
D) increase in quantity supplied. 
A) increase in supply. 
B) decrease in supply. 
C) decrease in quantity supplied. 
D) increase in quantity supplied.

Question 4

Figure 4-5  
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Accepted Answer

A) an increase in the price of DVDs 
B) a decrease in the price of DVD players 
C) a change in consumer preferences toward watching movies in movie theaters rather than at home 
D) an expectation by buyers that their incomes will increase in the very near future 
A) an increase in the price of DVDs 
B) a decrease in the price of DVD players 
C) a change in consumer preferences toward watching movies in movie theaters rather than at home 
D) an expectation by buyers that their incomes will increase in the very near future

Question 5

The law of supply and demand asserts that

Accepted Answer

A) demand curves and supply curves tend to shift to the right as time goes by. 
B) the price of a good will eventually rise in response to an excess demand for that good. 
C) when the supply curve for a good shifts, the demand curve for that good shifts in response. 
D) the equilibrium price of a good will be rising more often than it will be falling. 
A) demand curves and supply curves tend to shift to the right as time goes by. 
B) the price of a good will eventually rise in response to an excess demand for that good. 
C) when the supply curve for a good shifts, the demand curve for that good shifts in response. 
D) the equilibrium price of a good will be rising more often than it will be falling.

Question 6

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. 
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.

Question 7

Whenever a determinant of supply other than price changes, the supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would cause price to decrease?

Accepted Answer

A) a decrease in supply 
B) an increase in demand 
C) a surplus of the good 
D) a shortage of the good 
A) a decrease in supply 
B) an increase in demand 
C) a surplus of the good 
D) a shortage of the good

Question 9

Table 4-16
The following table shows the supply and demand schedules in a market.  
-Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

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

Question 10

Suppose John and Wayne are the only two demanders of cowboy movies. Each month, John buys six cowboy movies when the price is $10 each, and he buys four cowboy movies when the price is $15 each. Each month, Wayne buys four cowboy movies when the price is $10 each, and he buys two cowboy movies when the price is $15 each. Which of the following points is on the market demand curve?

Accepted Answer

A) quantity demanded = 2; price = $15 
B) quantity demanded = 4; price = $25 
C) quantity demanded = 10; price = $10 
D) quantity demanded = 16; price = $25 
A) quantity demanded = 2; price = $15 
B) quantity demanded = 4; price = $25 
C) quantity demanded = 10; price = $10 
D) quantity demanded = 16; price = $25

Question 11

Assume Leo buys coffee beans in a competitive market. It follows that

Accepted Answer

A) Leo has a limited number of sellers from which to buy coffee beans. 
B) Leo will negotiate with sellers whenever he buys coffee beans. 
C) Leo cannot influence the price of coffee beans even if he buys a large quantity of them. 
D) None of the above is correct. 
A) Leo has a limited number of sellers from which to buy coffee beans. 
B) Leo will negotiate with sellers whenever he buys coffee beans. 
C) Leo cannot influence the price of coffee beans even if he buys a large quantity of them. 
D) None of the above is correct.

Question 12

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 13

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, if the size of the shift of the demand curve is larger than the size of the shift of the supply curve, then the equilibrium quantity rises.

Accepted Answer

A) True 
 B)False

Question 14

Figure 4-21  
-Refer to Figure 4-21. At a price of $4, there is a

Accepted Answer

A) surplus of 1 unit. 
B) surplus of 3 units. 
C) shortage of 1 unit. 
D) shortage of 3 units. 
A) surplus of 1 unit. 
B) surplus of 3 units. 
C) shortage of 1 unit. 
D) shortage of 3 units.

Question 15

When supply and demand both increase, equilibrium

Accepted Answer

A) price will increase. 
B) price will decrease. 
C) quantity may increase, decrease, or remain unchanged. 
D) price may increase, decrease, or remain unchanged. 
A) price will increase. 
B) price will decrease. 
C) quantity may increase, decrease, or remain unchanged. 
D) price may increase, decrease, or remain unchanged.

Question 16

Equilibrium price must decrease when demand

Accepted Answer

A) increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. 
B) increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. 
C) decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. 
D) decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously. 
A) increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. 
B) increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. 
C) decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. 
D) decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.

Question 17

Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

Accepted Answer

A) True 
 B)False

Question 18

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. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 19

Which of the following characteristics is required for a perfectly competitive market?

Accepted Answer

A) The goods offered for sale are exactly the same. 
B) There are so many buyers and sellers that no single buyer or seller has any influence over the market price. 
C) It is difficult for new sellers to enter the market. 
D) Both a and b are correct. 
A) The goods offered for sale are exactly the same. 
B) There are so many buyers and sellers that no single buyer or seller has any influence over the market price. 
C) It is difficult for new sellers to enter the market. 
D) Both a and b are correct.

Question 20

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 approach of Thanksgiving would cause a move from

Accepted Answer

A) DA to DB. 
B) DB to DA. 
C) x to y. 
D) y to x. 
A) DA to DB. 
B) DB to DA. 
C) x to y. 
D) y to x.

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Buyers and sellers who have no influence on market price are referred to as

A movement downward and to the left along a supply curve is called a(n)

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

The law of supply and demand asserts that

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

Whenever a determinant of supply other than price changes, the supply curve shifts.

Which of the following would cause price to decrease?

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Assume Leo buys coffee beans in a competitive market. It follows that

Local cable television companies frequently are monopolists.

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

When supply and demand both increase, equilibrium

Equilibrium price must decrease when demand

Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

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. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Which of the following characteristics is required for a perfectly competitive market?

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 approach of Thanksgiving would cause a move from

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

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Buyers and sellers who have no influence on market price are referred to as

A movement downward and to the left along a supply curve is called a(n)

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

The law of supply and demand asserts that

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

Whenever a determinant of supply other than price changes, the supply curve shifts.

Which of the following would cause price to decrease?

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Assume Leo buys coffee beans in a competitive market. It follows that

Local cable television companies frequently are monopolists.

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

When supply and demand both increase, equilibrium

Equilibrium price must decrease when demand

Public service announcements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are all policies aimed at shifting the demand curve for cigarettes to the right.

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. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Which of the following characteristics is required for a perfectly competitive market?

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 approach of Thanksgiving would cause a move from

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. What are the values of the equilibrium price and quantity?