Question 1

If a increase in income decreases the demand for a good, then the good is a(n)

Accepted Answer

A) substitute good. 
B) complementary good. 
C) normal good. 
D) inferior good. 
A) substitute good. 
B) complementary good. 
C) normal good. 
D) inferior good.

Question 2

Table 4-2  
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

Accepted Answer

A) increases by 0.75 units. 
B) increases by 3 units. 
C) increases by 4 units. 
D) decreases by 27 units. 
A) increases by 0.75 units. 
B) increases by 3 units. 
C) increases by 4 units. 
D) decreases by 27 units.

Question 3

A decrease in the price of a good will

Accepted Answer

A) increase demand. 
B) decrease demand. 
C) increase quantity demanded. 
D) decrease quantity demanded. 
A) increase demand. 
B) decrease demand. 
C) increase quantity demanded. 
D) decrease quantity demanded.

Question 4

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

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 effect on equilibrium quantity would be ambiguous. 
D) The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous. 
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 effect on equilibrium quantity would be ambiguous. 
D) The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous.

Question 5

A decrease in the price of a good would

Accepted Answer

A) increase the supply of the good. 
B) increase the quantity demanded of the good. 
C) give producers an incentive to produce more to keep profits from falling. 
D) shift the supply curve for the good to the left. 
A) increase the supply of the good. 
B) increase the quantity demanded of the good. 
C) give producers an incentive to produce more to keep profits from falling. 
D) shift the supply curve for the good to the left.

Question 6

A supply schedule is a table that shows the relationship between

Accepted Answer

A) price and quantity supplied. 
B) input costs and quantity supplied. 
C) quantity demanded and quantity supplied. 
D) profit and quantity supplied. 
A) price and quantity supplied. 
B) input costs and quantity supplied. 
C) quantity demanded and quantity supplied. 
D) profit and quantity supplied.

Question 7

The market demand curve

Accepted Answer

A) is found by vertically adding the individual demand curves. 
B) slopes upward. 
C) represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D) represents the sum of the quantities demanded by all the buyers at each price of the good. 
A) is found by vertically adding the individual demand curves. 
B) slopes upward. 
C) represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D) represents the sum of the quantities demanded by all the buyers at each price of the good.

Question 8

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, then what will be the equilibrium price?

Accepted Answer

A) $10 
B) $15 
C) $20 
D) $25 
A) $10 
B) $15 
C) $20 
D) $25

Question 9

When the price of a good is higher than the equilibrium price,

Accepted Answer

A) a shortage will exist. 
B) buyers desire to purchase more than is produced. 
C) sellers desire to produce and sell more than buyers wish to purchase. 
D) quantity demanded exceeds quantity supplied. 
A) a shortage will exist. 
B) buyers desire to purchase more than is produced. 
C) sellers desire to produce and sell more than buyers wish to purchase. 
D) quantity demanded exceeds quantity supplied.

Question 10

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.  
-Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Accepted Answer

A) only for Harry 
B) only for Darby 
C) for both Harry and Darby 
D) This cannot be determined from the given information. 
A) only for Harry 
B) only for Darby 
C) for both Harry and Darby 
D) This cannot be determined from the given information.

Question 11

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

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 D 
A) Point A to Point B 
B) Point C to Point B 
C) Point C to Point D 
D) Point A to Point D

Question 12

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation   , where   is the quantity demanded and   is the price. Also, suppose the supply schedule can be represented by the equation   , where   is the quantity supplied.
-Refer to Scenario 4-1. Suppose the price is currently equal to 18 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus?

Accepted Answer

There is a

Question 13

Table 4-7  
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Accepted Answer

A) 4 gallons. 
B) 5 gallons. 
C) 20 gallons. 
D) 80 gallons. 
A) 4 gallons. 
B) 5 gallons. 
C) 20 gallons. 
D) 80 gallons.

Question 14

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A) a decrease in the price of gasoline 
B) an increase in consumer income, assuming gasoline is a normal good 
C) an increase in the price of cars, a complement for gasoline 
D) a decrease in the expected future price of gasoline 
A) a decrease in the price of gasoline 
B) an increase in consumer income, assuming gasoline is a normal good 
C) an increase in the price of cars, a complement for gasoline 
D) a decrease in the expected future price of gasoline

Question 15

A decrease in the price of a complement will shift the demand curve for a good to the left.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-1  
-Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

Accepted Answer

A) decrease in demand. 
B) increase in demand. 
C) decrease in quantity demanded. 
D) increase in quantity demanded. 
A) decrease in demand. 
B) increase in demand. 
C) decrease in quantity demanded. 
D) increase in quantity demanded.

Question 17

The market supply curve

Accepted Answer

A) is found by vertically adding the individual supply curves. 
B) slopes downward. 
C) represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good. 
D) represents the sum of the quantities supplied by all the sellers at each price of the good. 
A) is found by vertically adding the individual supply curves. 
B) slopes downward. 
C) represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good. 
D) represents the sum of the quantities supplied by all the sellers at each price of the good.

Question 18

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

Accepted Answer

A) True 
 B)False

Question 19

The two words economists use most often are

Accepted Answer

A) inflation and trade. 
B) supply and demand. 
C) competition and prices. 
D) markets and equilibrium. 
A) inflation and trade. 
B) supply and demand. 
C) competition and prices. 
D) markets and equilibrium.

Question 20

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Accepted Answer

The supply

If a increase in income decreases the demand for a good, then the good is a(n)

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

A decrease in the price of a good will

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

A decrease in the price of a good would

A supply schedule is a table that shows the relationship between

The market demand curve

When the price of a good is higher than the equilibrium price,

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Which of the following would shift the demand curve for gasoline to the right?

A decrease in the price of a complement will shift the demand curve for a good to the left.

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

The market supply curve

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

The two words economists use most often are

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

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

If a increase in income decreases the demand for a good, then the good is a(n)

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

A decrease in the price of a good will

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

A decrease in the price of a good would

A supply schedule is a table that shows the relationship between

The market demand curve

When the price of a good is higher than the equilibrium price,

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Which of the following would shift the demand curve for gasoline to the right?

A decrease in the price of a complement will shift the demand curve for a good to the left.

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows a(n)

The market supply curve

If a company making frozen orange juice expects the price of its product to be higher next month, it will supply more to the market this month.

The two words economists use most often are

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

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