Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Accepted Answer

A) decreases. 
B) increases. 
C) remains constant, but we observe a movement downward and to the right along the demand curve. 
D) remains constant, but we observe a movement upward and to the left along the demand curve. 
A) decreases. 
B) increases. 
C) remains constant, but we observe a movement downward and to the right along the demand curve. 
D) remains constant, but we observe a movement upward and to the left along the demand curve.

Question 3

Holding all other things constant, a higher price for ski lift tickets would

Accepted Answer

A) increase the number of skiers. 
B) increase the price of skis. 
C) decrease the number of skis sold. 
D) decrease the demand for other winter recreational activities. 
A) increase the number of skiers. 
B) increase the price of skis. 
C) decrease the number of skis sold. 
D) decrease the demand for other winter recreational activities.

Question 4

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

Accepted Answer

A) True 
 B)False

Question 5

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 6

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

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 equilibrium quantity would decrease. 
D) The equilibrium price would decrease, and the equilibrium quantity would increase. 
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 equilibrium quantity would decrease. 
D) The equilibrium price would decrease, and the equilibrium quantity would increase.

Question 7

Figure 4-11  
-Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

Accepted Answer

A) a decrease in the price of the good. 
B) an increase in the price of the good. 
C) an advance in production technology. 
D) a decrease in input prices. 
A) a decrease in the price of the good. 
B) an increase in the price of the good. 
C) an advance in production technology. 
D) a decrease in input prices.

Question 8

Figure 4-7  
-Refer to Figure 4-7. The movement from Db to Da could be caused by

Accepted Answer

A) a decrease in price. 
B) an increase in the price of a complement. 
C) a technological advance. 
D) an increase in the price of a substitute. 
A) a decrease in price. 
B) an increase in the price of a complement. 
C) a technological advance. 
D) an increase in the price of a substitute.

Question 9

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Accepted Answer

A) The Green Bay Packers make it to the Super Bowl. 
B) The price of the jerseys increases by $15. 
C) The technology of sewing machines use to make the jerseys improves. 
D) The cost of the fabric used to make the jerseys increases. 
A) The Green Bay Packers make it to the Super Bowl. 
B) The price of the jerseys increases by $15. 
C) The technology of sewing machines use to make the jerseys improves. 
D) The cost of the fabric used to make the jerseys increases.

Question 10

Figure 4-13    
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $2 is

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 10 units. 
A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 10 units.

Question 11

Assume Diana buys computers in a competitive market. It follows that

Accepted Answer

A) Diana has a limited number of sellers to turn to when she buys a computer. 
B) Diana will find herself negotiating with sellers whenever she buys a computer. 
C) if Diana buys a large number of computers, the price of computers will rise noticeably. 
D) None of the above is correct. 
A) Diana has a limited number of sellers to turn to when she buys a computer. 
B) Diana will find herself negotiating with sellers whenever she buys a computer. 
C) if Diana buys a large number of computers, the price of computers will rise noticeably. 
D) None of the above is correct.

Question 12

Figure 4-18  
-Refer to Figure 4-18. At a price of $20, there would be a(n)

Accepted Answer

A) shortage. The law of supply and demand predicts that the price will fall from $20 to a lower price. 
B) surplus. The law of supply and demand predicts that the price will rise from $20 to a higher price. 
C) excess demand. The law of supply and demand predicts that the price will rise from $20 to a higher price. 
D) excess supply. The law of supply and demand predicts that the price will fall from $20 to a lower price. 
A) shortage. The law of supply and demand predicts that the price will fall from $20 to a lower price. 
B) surplus. The law of supply and demand predicts that the price will rise from $20 to a higher price. 
C) excess demand. The law of supply and demand predicts that the price will rise from $20 to a higher price. 
D) excess supply. The law of supply and demand predicts that the price will fall from $20 to a lower price.

Question 13

Figure 4-20  
-Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

Accepted Answer

A) 500 units and 500 units. 
B) 500 units and 800 units. 
C) 600 units and 600 units. 
D) 800 units and 500 units. 
A) 500 units and 500 units. 
B) 500 units and 800 units. 
C) 600 units and 600 units. 
D) 800 units and 500 units.

Question 14

Figure 4-28
​  
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

Accepted Answer

The answer of Figure 4-28
​  
-Refer to Figure 4-28....

Question 15

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 16

A leftward shift of 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 17

Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

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 18

Prices allocate a market economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 19

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A) the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. 
B) the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. 
C) there is a surplus of blue jeans at the $30 price. 
D) All of the above are correct. 
A) the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. 
B) the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. 
C) there is a surplus of blue jeans at the $30 price. 
D) All of the above are correct.

Question 20

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.

Exam 4: The Market Forces of Supply and Demand

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

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Holding all other things constant, a higher price for ski lift tickets would

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

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

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

Figure 4-7 -Refer to Figure 4-7. The movement from Db to Da could be caused by

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $2 is

Assume Diana buys computers in a competitive market. It follows that

Figure 4-18 -Refer to Figure 4-18. At a price of $20, there would be a(n)

Figure 4-20 -Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

Figure 4-28 ​ -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

A decrease in the price of a good will

A leftward shift of a supply curve is called a(n)

Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?

Prices allocate a market economy's scarce resources.

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

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

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

Filters

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.