Question 1

Table 4-6  
-Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Accepted Answer

A) 4 units. 
B) 7.5 units. 
C) 10 units. 
D) 30 units. 
A) 4 units. 
B) 7.5 units. 
C) 10 units. 
D) 30 units.

Question 2

Which of the following events must cause equilibrium quantity to rise?

Accepted Answer

A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase 
A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase

Question 3

Figure 4-20  
-Refer to Figure 4-20. At a price of $15,

Accepted Answer

A) quantity demanded exceeds quantity supplied. 
B) there is a shortage. 
C) there is an excess demand. 
D) All of the above are correct. 
A) quantity demanded exceeds quantity supplied. 
B) there is a shortage. 
C) there is an excess demand. 
D) All of the above are correct.

Question 4

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 5

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Accepted Answer

A) both the equilibrium price and quantity to decrease. 
B) both the equilibrium price and quantity to increase. 
C) the equilibrium price to increase and the equilibrium quantity to decrease. 
D) the equilibrium price to decrease and the equilibrium quantity to increase. 
A) both the equilibrium price and quantity to decrease. 
B) both the equilibrium price and quantity to increase. 
C) the equilibrium price to increase and the equilibrium quantity to decrease. 
D) the equilibrium price to decrease and the equilibrium quantity to increase.

Question 6

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities.  
-Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Accepted Answer

A) x to y. 
B) y to x. 
C) SA to SB. 
D) SB to SA. 
A) x to y. 
B) y to x. 
C) SA to SB. 
D) SB to SA.

Question 7

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 8

Table 4-9  
-Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 9

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 10

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

Accepted Answer

A) increase in price. 
B) decrease in price. 
C) decrease in the price of a substitute good. 
D) increase in income. 
A) increase in price. 
B) decrease in price. 
C) decrease in the price of a substitute good. 
D) increase in income.

Question 11

Table 4-9  
-Refer to Table 4-9. Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 12

Table 4-16
The following table shows the supply and demand schedules in a market.  
-Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Accepted Answer

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

Question 13

Figure 4-16  
-Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

Accepted Answer

A) decrease in the number of commercial bakers. 
B) improvement in oven technology. 
C) decrease in the price of butter. 
D) decrease in the price of chocolate cake. 
A) decrease in the number of commercial bakers. 
B) improvement in oven technology. 
C) decrease in the price of butter. 
D) decrease in the price of chocolate cake.

Question 14

When the price of a good or service changes,

Accepted Answer

A) the demand curve shifts in the opposite direction. 
B) the supply curve shifts in the opposite direction. 
C) the supply curve shifts in the same direction. 
D) there is a movement along a given supply curve. 
A) the demand curve shifts in the opposite direction. 
B) the supply curve shifts in the opposite direction. 
C) the supply curve shifts in the same direction. 
D) there is a movement along a given supply curve.

Question 15

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 16

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 income of buyers who consider turkey to be an inferior good 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 17

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 18

In a market economy, supply and demand are important because they

Accepted Answer

A) are direct policy tools used by government agencies to regulate the economy. 
B) illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. 
C) can be used to predict the impact on the economy of various events and policies. 
D) All of the above are correct. 
A) are direct policy tools used by government agencies to regulate the economy. 
B) illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. 
C) can be used to predict the impact on the economy of various events and policies. 
D) All of the above are correct.

Question 19

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 20

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A) decreases, and the supply of tires increases. 
B) is unaffected, and the supply of tires decreases. 
C) is unaffected, and the supply of tires increases. 
D) None of the above is necessarily correct. 
A) decreases, and the supply of tires increases. 
B) is unaffected, and the supply of tires decreases. 
C) is unaffected, and the supply of tires increases. 
D) None of the above is necessarily correct.

Exam 4: The Market Forces of Supply and Demand

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

Which of the following events must cause equilibrium quantity to rise?

Figure 4-20 -Refer to Figure 4-20. At a price of $15,

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Most studies indicate that tobacco and marijuana tend to be

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

Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

When the price of a good or service changes,

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

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 income of buyers who consider turkey to be an inferior good would cause a move from

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

In a market economy, supply and demand are important because they

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

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

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

Applications: 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

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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