Question 1

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A) price-quantity schedule. 
B) buyer schedule. 
C) demand schedule. 
D) demand curve. 
A) price-quantity schedule. 
B) buyer schedule. 
C) demand schedule. 
D) demand curve.

Question 2

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Accepted Answer

A) shortage to exist and the market price of roses to increase. 
B) shortage to exist and the market price of roses to decrease. 
C) surplus to exist and the market price of roses to increase. 
D) surplus to exist and the market price of roses to decrease. 
A) shortage to exist and the market price of roses to increase. 
B) shortage to exist and the market price of roses to decrease. 
C) surplus to exist and the market price of roses to increase. 
D) surplus to exist and the market price of roses to decrease.

Question 3

Figure 4-24
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers 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.

Question 4

Table 4-14
The table below shows the quantities demanded of milk per month by four families at various prices.  
-Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk increases from $4.00 to $5.00, what is the change in the market quantity demanded?

Accepted Answer

decreases

Question 5

In a competitive market, each seller has limited control over the price of his product because

Accepted Answer

A) other sellers are offering similar products. 
B) buyers exert more control over the price than do sellers. 
C) these markets are highly regulated by the government. 
D) sellers usually agree to set a common price that will allow each seller to earn a comfortable profit. 
A) other sellers are offering similar products. 
B) buyers exert more control over the price than do sellers. 
C) these markets are highly regulated by the government. 
D) sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.

Question 6

The equilibrium price is the same as the market-clearing price.

Accepted Answer

A) True 
 B)False

Question 7

The quantity supplied of a good is the amount that

Accepted Answer

A) buyers are willing and able to purchase. 
B) sellers are able to produce. 
C) buyers and sellers agree will be brought to market. 
D) sellers are willing and able to sell. 
A) buyers are willing and able to purchase. 
B) sellers are able to produce. 
C) buyers and sellers agree will be brought to market. 
D) sellers are willing and able to sell.

Question 8

Figure 4-30
​  
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Accepted Answer

Equilibrium price de

Question 9

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

Accepted Answer

The demand

Question 10

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 11

Assume a market is perfectly competitive. When a new producer enters the market, the

Accepted Answer

A) price in the market increases. 
B) price in the market decreases. 
C) price in the market does not change. 
D) market is no longer a competitive market. 
A) price in the market increases. 
B) price in the market decreases. 
C) price in the market does not change. 
D) market is no longer a competitive market.

Question 12

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A) income varies. 
B) price varies. 
C) price of the nearest substitute good varies. 
D) supply varies. 
A) income varies. 
B) price varies. 
C) price of the nearest substitute good varies. 
D) supply varies.

Question 13

A decrease in the number of sellers in the market causes

Accepted Answer

A) the supply curve to shift to the left. 
B) the supply curve to shift to the right. 
C) a movement up and to the right along a stationary supply curve. 
D) a movement downward and to the left along a stationary supply curve. 
A) the supply curve to shift to the left. 
B) the supply curve to shift to the right. 
C) a movement up and to the right along a stationary supply curve. 
D) a movement downward and to the left along a stationary supply curve.

Question 14

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Accepted Answer

A) Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B) Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
A) Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B) Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

Question 15

A market supply curve shows

Accepted Answer

A) the total quantity supplied at all possible prices. 
B) the average quantity supplied by producers at all possible prices. 
C) how quantity supplied changes when consumer income changes. 
D) suppliers' responses, in terms of the amounts they will supply, to the demands of buyers. 
A) the total quantity supplied at all possible prices. 
B) the average quantity supplied by producers at all possible prices. 
C) how quantity supplied changes when consumer income changes. 
D) suppliers' responses, in terms of the amounts they will supply, to the demands of buyers.

Question 16

Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase?

Accepted Answer

A) Price will rise. 
B) Price will fall. 
C) Price will stay exactly the same. 
D) The price change will be ambiguous. 
A) Price will rise. 
B) Price will fall. 
C) Price will stay exactly the same. 
D) The price change will be ambiguous.

Question 17

Figure 4-20  
-Refer to Figure 4-20. If the price is $25, then there would be an excess

Accepted Answer

A) supply of 100 units, and price would fall. 
B) supply of 300 units, and price would fall. 
C) demand of 100 units, and price would fall. 
D) demand of 300 units, and price would fall. 
A) supply of 100 units, and price would fall. 
B) supply of 300 units, and price would fall. 
C) demand of 100 units, and price would fall. 
D) demand of 300 units, and price would fall.

Question 18

Which of these statements does not apply to market economies?

Accepted Answer

A) Prices prevent decentralized decision making from degenerating into chaos. 
B) Prices coordinate the actions of millions of people with varying abilities and desires. 
C) Prices ensure that anyone who wants a product can get it. 
D) Prices ensure that what needs to get done does in fact get done. 
A) Prices prevent decentralized decision making from degenerating into chaos. 
B) Prices coordinate the actions of millions of people with varying abilities and desires. 
C) Prices ensure that anyone who wants a product can get it. 
D) Prices ensure that what needs to get done does in fact get done.

Question 19

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

A) substitutes. 
B) complements. 
C) unrelated because one good is legal while the other one is illegal. 
D) inferior goods. 
A) substitutes. 
B) complements. 
C) unrelated because one good is legal while the other one is illegal. 
D) inferior goods.

Question 20

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from

In a competitive market, each seller has limited control over the price of his product because

The equilibrium price is the same as the market-clearing price.

The quantity supplied of a good is the amount that

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

A surplus is the same as an excess demand.

Assume a market is perfectly competitive. When a new producer enters the market, the

A market demand curve shows how the total quantity demanded of a good varies as

A decrease in the number of sellers in the market causes

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

A market supply curve shows

Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

Which of these statements does not apply to market economies?

Most studies indicate that tobacco and marijuana tend to be

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

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

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from

In a competitive market, each seller has limited control over the price of his product because

The equilibrium price is the same as the market-clearing price.

The quantity supplied of a good is the amount that

Figure 4-30 ​ -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

If income rises in the market for an inferior good, will the demand curve for the inferior good shift to the right or to the left?

A surplus is the same as an excess demand.

Assume a market is perfectly competitive. When a new producer enters the market, the

A market demand curve shows how the total quantity demanded of a good varies as

A decrease in the number of sellers in the market causes

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

A market supply curve shows

Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

Which of these statements does not apply to market economies?

Most studies indicate that tobacco and marijuana tend to be

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

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. Explain the change(s) in the equilibrium price and quantity.