Question 1

Soup is an inferior good if the demand

Accepted Answer

A) for soup falls when the price of a substitute for soup rises. 
B) for soup rises when the price of soup falls. 
C) curve for soup slopes upward. 
D) for soup falls when income rises. 
A) for soup falls when the price of a substitute for soup rises. 
B) for soup rises when the price of soup falls. 
C) curve for soup slopes upward. 
D) for soup falls when income rises.

Question 2

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

Accepted Answer

A) True 
 B)False

Question 3

If muffins and bagels are substitutes, a higher price for bagels would result in

Accepted Answer

A) an increase in the demand for bagels. 
B) a decrease in the demand for bagels. 
C) an increase in the demand for muffins. 
D) a decrease in the demand for muffins. 
A) an increase in the demand for bagels. 
B) a decrease in the demand for bagels. 
C) an increase in the demand for muffins. 
D) a decrease in the demand for muffins.

Question 4

According to the law of demand, when price increases the quantity demanded of a good

Accepted Answer

The answer of According to the law of demand, when...

Question 5

Which of the following would shift the supply of cars to the left?

Accepted Answer

A) Increased toll prices are causing more consumers to use public transportation to commute to work. 
B) The price of a car increases by $9,000. 
C) New assembly line technology allows a car to be produced at half the cost. 
D) The cost of the aluminum used to make a car's frame increases. 
A) Increased toll prices are causing more consumers to use public transportation to commute to work. 
B) The price of a car increases by $9,000. 
C) New assembly line technology allows a car to be produced at half the cost. 
D) The cost of the aluminum used to make a car's frame increases.

Question 6

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 7

Table 4-6
​
​
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 15 & 10 & 60 \
\hline 12 & 20 & 45 \
\hline 9 & 30 & 30 \
\hline 6 & 40 & 15 \
\hline 3 & 50 & 0 \
\hline
\end{array}$$ ​
-Refer to Table 4-6. The equilibrium price and quantity, respectively, are

Accepted Answer

A) $6 and 45 units. 
B) $9 and 30 units. 
C) $9 and 40 units. 
D) $12 and 30 units. 
A) $6 and 45 units. 
B) $9 and 30 units. 
C) $9 and 40 units. 
D) $12 and 30 units.

Question 8

Figure 4-13
   ​
-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

Question 9

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 10

Figure 4-11
​
   ​
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

Accepted Answer

The answer of Figure 4-11
​
   ​
-Refer to Figure...

Question 11

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Accepted Answer

A) True 
 B)False

Question 12

The market supply curve

Accepted Answer

A) shows how supply changes when expectations change. 
B) is determined by vertically summing individual supply curves. 
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) shows how supply changes when expectations change. 
B) is determined by vertically summing individual supply curves. 
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 13

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Accepted Answer

A) True 
 B)False

Question 14

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 them?

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 15

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 16

If a seller in a competitive market chooses to charge more than the going price, then

Accepted Answer

A) the sellers' profits must increase. 
B) the owners of the raw materials used in production would raise the prices for the raw materials. 
C) other sellers would also raise their prices. 
D) buyers will make purchases from other sellers. 
A) the sellers' profits must increase. 
B) the owners of the raw materials used in production would raise the prices for the raw materials. 
C) other sellers would also raise their prices. 
D) buyers will make purchases from other sellers.

Question 17

Which of the following events could cause an increase in the supply of ceiling fans?

Accepted Answer

A) The number of sellers of ceiling fans increases. 
B) There is an increase in the price of air conditioners, and consumers regard air conditioners and ceiling fans as substitutes. 
C) There is an increase in the price of the motor that powers ceiling fans. 
D) The average temperature rises over time. 
A) The number of sellers of ceiling fans increases. 
B) There is an increase in the price of air conditioners, and consumers regard air conditioners and ceiling fans as substitutes. 
C) There is an increase in the price of the motor that powers ceiling fans. 
D) The average temperature rises over time.

Question 18

If a determinant of demand other than price changes, the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 19

The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 4: The Market Forces of Supply and Demand

Soup is an inferior good if the demand

An increase in the price of maple syrup will decrease both the equilibrium price and quantity in the market for pancakes.

If muffins and bagels are substitutes, a higher price for bagels would result in

According to the law of demand, when price increases the quantity demanded of a good

Which of the following would shift the supply of cars to the left?

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Table 4-6 ​ ​ Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 15 10 60 12 20 45 9 30 30 6 40 15 3 50 0 ​ -Refer to Table 4-6. The equilibrium price and quantity, respectively, are

Figure 4-13 ​ -Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

An increase in the price of ink will shift the supply curve for pens to the left.

Figure 4-11 ​ ​ -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

The market supply curve

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

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 them?

A shortage is the same as an excess demand.

If a seller in a competitive market chooses to charge more than the going price, then

Which of the following events could cause an increase in the supply of ceiling fans?

If a determinant of demand other than price changes, the demand curve shifts.

The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well.

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

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 Nations 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

Table 4-6 Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 15 10 60 12 20 45 9 30 30 6 40 15 3 50 0 -Refer to Table 4-6. The equilibrium price and quantity, respectively, are

Figure 4-13 -Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Figure 4-11 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.