Question 1

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Accepted Answer

A) Price would fall, and the effect on quantity would be ambiguous. 
B) Price would rise, and the effect on quantity would be ambiguous. 
C) Quantity would fall, and the effect on price would be ambiguous. 
D) Quantity would rise, and the effect on price would be ambiguous. 
A) Price would fall, and the effect on quantity would be ambiguous. 
B) Price would rise, and the effect on quantity would be ambiguous. 
C) Quantity would fall, and the effect on price would be ambiguous. 
D) Quantity would rise, and the effect on price would be ambiguous.

Question 2

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

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 3

Figure 4-12
Firm A
Firm B    
-Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

Accepted Answer

A) 14 units. 
B) 15 units. 
C) 16 units. 
D) 29 units. 
A) 14 units. 
B) 15 units. 
C) 16 units. 
D) 29 units.

Question 4

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 5

Table 4-4  
-Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

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 6

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Accepted Answer

A) Price will fall, and the effect on quantity is ambiguous. 
B) Price will rise, and the effect on quantity is ambiguous. 
C) Quantity will fall, and the effect on price is ambiguous. 
D) Quantity will rise, and the effect on price is ambiguous. 
A) Price will fall, and the effect on quantity is ambiguous. 
B) Price will rise, and the effect on quantity is ambiguous. 
C) Quantity will fall, and the effect on price is ambiguous. 
D) Quantity will rise, and the effect on price is ambiguous.

Question 7

The belief that tobacco is a "gateway drug" is consistent with

Accepted Answer

A) the idea that tobacco and marijuana are substitutes. 
B) the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana. 
C) the idea that lower cigarette prices are associated with less use of marijuana. 
D) most of the available evidence. 
A) the idea that tobacco and marijuana are substitutes. 
B) the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana. 
C) the idea that lower cigarette prices are associated with less use of marijuana. 
D) most of the available evidence.

Question 8

A university's football stadium is never more than half-full during football games. This indicates

Accepted Answer

A) the ticket price is above the equilibrium price. 
B) the ticket price is below the equilibrium price. 
C) the ticket price is at the equilibrium price. 
D) nothing about the equilibrium price. 
A) the ticket price is above the equilibrium price. 
B) the ticket price is below the equilibrium price. 
C) the ticket price is at the equilibrium price. 
D) nothing about the equilibrium price.

Question 9

If the supply of a product increases, then we would expect equilibrium price

Accepted Answer

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

Question 10

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. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Scenario 4-1
Suppose the demand schedule in a...

Question 11

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Accepted Answer

A) decrease in the demand for printers and a decrease in the quantity supplied of printers. 
B) decrease in the supply of printers and a decrease in the quantity demanded of printers. 
C) decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers. 
D) increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers. 
A) decrease in the demand for printers and a decrease in the quantity supplied of printers. 
B) decrease in the supply of printers and a decrease in the quantity demanded of printers. 
C) decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers. 
D) increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers.

Question 13

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A) willing to purchase. 
B) willing and able to purchase. 
C) willing, able, and need to purchase. 
D) able to purchase. 
A) willing to purchase. 
B) willing and able to purchase. 
C) willing, able, and need to purchase. 
D) able to purchase.

Question 14

Figure 4-17  
-Refer to Figure 4-17. At a price of

Accepted Answer

A) $2, there is a shortage of 6 units. 
B) $5, there is a surplus of 25 units. 
C) $5, there is a shortage of $25. 
D) $7, there is a shortage of 4 units. 
A) $2, there is a shortage of 6 units. 
B) $5, there is a surplus of 25 units. 
C) $5, there is a shortage of $25. 
D) $7, there is a shortage of 4 units.

Question 15

Table 4-11  
-Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Accepted Answer

A) $2 and 50 units. 
B) $6 and 30 units. 
C) $6 and 60 units. 
D) $12 and 30 units. 
A) $2 and 50 units. 
B) $6 and 30 units. 
C) $6 and 60 units. 
D) $12 and 30 units.

Question 16

When quantity demanded decreases at every possible price, the demand curve has

Accepted Answer

A) shifted to the left. 
B) shifted to the right. 
C) not shifted; rather, we have moved along the demand curve to a new point on the same curve. 
D) not shifted; rather, the demand curve has become flatter. 
A) shifted to the left. 
B) shifted to the right. 
C) not shifted; rather, we have moved along the demand curve to a new point on the same curve. 
D) not shifted; rather, the demand curve has become flatter.

Question 17

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 lattés cause 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 decrease, and the effect on equilibrium quantity would be ambiguous. 
D) The equilibrium quantity would decrease, 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 decrease, and the effect on equilibrium quantity would be ambiguous. 
D) The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.

Question 18

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause 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 decrease, and the effect on equilibrium quantity would be ambiguous. 
D) The equilibrium quantity would decrease, 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 decrease, and the effect on equilibrium quantity would be ambiguous. 
D) The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.

Question 19

Figure 4-23  
-Refer to Figure 4-23. In this market for sunscreen, there is a decrease in the price of zinc oxide, an input into sunscreen, and more producers enter the market. The equilibrium price

Accepted Answer

A) increases and the equilibrium quantity decreases. 
B) decreases and the equilibrium quantity increases. 
C) is ambiguous and the equilibrium quantity increases. 
D) decreases and the equilibrium quantity is ambiguous. 
A) increases and the equilibrium quantity decreases. 
B) decreases and the equilibrium quantity increases. 
C) is ambiguous and the equilibrium quantity increases. 
D) decreases and the equilibrium quantity is ambiguous.

Question 20

Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A) Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
C) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D) None of the above is correct. 
A) Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
C) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D) None of the above is correct.

Exam 4: The Market Forces of Supply and Demand

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

Figure 4-12 Firm A Firm B -Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

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?

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

The belief that tobacco is a "gateway drug" is consistent with

A university's football stadium is never more than half-full during football games. This indicates

If the supply of a product increases, then we would expect equilibrium price

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

The quantity demanded of a good is the amount that buyers are

Figure 4-17 -Refer to Figure 4-17. At a price of

Table 4-11 -Refer to Table 4-11. The equilibrium price and quantity, respectively, are

When quantity demanded decreases at every possible price, the demand curve has

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 lattés cause heart attacks?

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

Figure 4-23 -Refer to Figure 4-23. In this market for sunscreen, there is a decrease in the price of zinc oxide, an input into sunscreen, and more producers enter the market. The equilibrium price

Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market?

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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