Question 1

If a shortage exists in a market, then we know that the actual price is

Accepted Answer

A) above the equilibrium price, and quantity supplied is greater than quantity demanded. 
B) above the equilibrium price, and quantity demanded is greater than quantity supplied. 
C) below the equilibrium price, and quantity demanded is greater than quantity supplied. 
D) below the equilibrium price, and quantity supplied is greater than quantity demanded. 
A) above the equilibrium price, and quantity supplied is greater than quantity demanded. 
B) above the equilibrium price, and quantity demanded is greater than quantity supplied. 
C) below the equilibrium price, and quantity demanded is greater than quantity supplied. 
D) below the equilibrium price, and quantity supplied is greater than quantity demanded.

Question 2

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:  
-Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $30, then there will be

Accepted Answer

A) a shortage of 300 tickets. 
B) a surplus of 300 tickets. 
C) 600 tickets sold. 
D) 600 tickets unsold. 
A) a shortage of 300 tickets. 
B) a surplus of 300 tickets. 
C) 600 tickets sold. 
D) 600 tickets unsold.

Question 3

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Accepted Answer

A) True 
 B)False

Question 4

Figure 4-2    
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 12 units. 
A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 12 units.

Question 5

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A) today's price of gasoline. 
B) the expected future price of gasoline. 
C) the number of buyers of gasoline. 
D) All of the above are correct. 
A) today's price of gasoline. 
B) the expected future price of gasoline. 
C) the number of buyers of gasoline. 
D) All of the above are correct.

Question 6

Figure 4-21  
-Refer to Figure 4-21. What is the equilibrium price in this market?

Accepted Answer

A) $0 
B) $5 
C) $10 
D) $20 
A) $0 
B) $5 
C) $10 
D) $20

Question 7

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 8

A market demand curve shows

Accepted Answer

A) the relationship between price and the number of buyers in a market. 
B) how quantity demanded changes when the number of sellers changes. 
C) the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good. 
D) how much of a good all buyers are willing and able to buy at each possible price. 
A) the relationship between price and the number of buyers in a market. 
B) how quantity demanded changes when the number of sellers changes. 
C) the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good. 
D) how much of a good all buyers are willing and able to buy at each possible price.

Question 9

Figure 4-21  
-Refer to Figure 4-21. What is the equilibrium quantity in this market?

Accepted Answer

A) 2.5 units 
B) 5 units 
C) 7.5 units 
D) 10 units 
A) 2.5 units 
B) 5 units 
C) 7.5 units 
D) 10 units

Question 10

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A) a decrease in the price of mp3 players 
B) a fad that makes mp3 players more popular among 12-25 year olds 
C) an increase in the price of digital music downloads, a complement for mp3 players 
D) a decrease in the price of satellite radio, a substitute for mp3 players 
A) a decrease in the price of mp3 players 
B) a fad that makes mp3 players more popular among 12-25 year olds 
C) an increase in the price of digital music downloads, a complement for mp3 players 
D) a decrease in the price of satellite radio, a substitute for mp3 players

Question 11

The supply curve for portable charcoal grills shifts

Accepted Answer

A) only when production technology changes. 
B) when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes. 
C) when any determinant of the supply of portable charcoal grills changes. 
D) only when the number of sellers of portable charcoal grills changes. 
A) only when production technology changes. 
B) when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes. 
C) when any determinant of the supply of portable charcoal grills changes. 
D) only when the number of sellers of portable charcoal grills changes.

Question 12

Figure 4-20  
-Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A) $15 and 400 units. 
B) $20 and 600 units. 
C) $25 and 500 units. 
D) $25 and 800 units. 
A) $15 and 400 units. 
B) $20 and 600 units. 
C) $25 and 500 units. 
D) $25 and 800 units.

Question 13

Individual demand curves are summed horizontally to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 14

Figure 4-27
Panel (a)
Panel (b)     Panel (c)
Panel (d)    
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Accepted Answer

A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d) 
A) Panel (a) 
B) Panel (b) 
C) Panel (c) 
D) Panel (d)

Question 15

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A) There is a shortage of oranges. 
B) The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C) The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D) All of the above are correct. 
A) There is a shortage of oranges. 
B) The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C) The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D) All of the above are correct.

Question 16

Figure 4-30
​  
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Accepted Answer

Supply shi

Question 17

If the demand for a good falls when income falls, then the good is called a(n)

Accepted Answer

A) normal good. 
B) regular good. 
C) luxury good. 
D) inferior good. 
A) normal good. 
B) regular good. 
C) luxury good. 
D) inferior good.

Question 18

Which of the following is not held constant in a supply schedule?

Accepted Answer

A) production technology 
B) the price of the good 
C) the prices of inputs 
D) expectations 
A) production technology 
B) the price of the good 
C) the prices of inputs 
D) expectations

Question 19

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. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Accepted Answer

Question 20

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. 
A) tastes. 
B) production technology. 
C) expectations. 
D) the prices of related goods.

Exam 4: The Market Forces of Supply and Demand

If a shortage exists in a market, then we know that the actual price is

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Today's supply curve for gasoline could shift in response to a change in

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium price in this market?

Monopolists are price takers.

A market demand curve shows

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Which of the following would not shift the demand curve for mp3 players?

The supply curve for portable charcoal grills shifts

Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Individual demand curves are summed horizontally to obtain the market demand curve.

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Which of the following events would cause the price of oranges to fall?

Figure 4-30 ​ -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

If the demand for a good falls when income falls, then the good is called a(n)

Which of the following is not held constant in a supply schedule?

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. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Each of the following is a determinant of demand except

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 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

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. Assuming these are the only four suppliers in this market, the function for market supply can be written as Q^S=