Question 1

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

A) The prices of related goods 
B) Income 
C) Tastes 
D) The prices of the inputs used to produce the good 
A) The prices of related goods 
B) Income 
C) Tastes 
D) The prices of the inputs used to produce the good

Question 2

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

Accepted Answer

The demand

Question 3

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Accepted Answer

A) True 
 B)False

Question 4

A baker recently has come to expect higher prices for bread in the near future. We would expect

Accepted Answer

A) the baker to supply more bread now than she was supplying previously. 
B) the baker to supply less bread now than she was supplying previously. 
C) the demand for bread to fall. 
D) no change in the baker's current supply of bread; instead, future supply will be affected. 
A) the baker to supply more bread now than she was supplying previously. 
B) the baker to supply less bread now than she was supplying previously. 
C) the demand for bread to fall. 
D) no change in the baker's current supply of bread; instead, future supply will be affected.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In a competitive market, there are so few buyers and so few sellers that each has a significant impact on the market price.

Accepted Answer

A) True 
 B)False

Question 7

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 8

Figure 4-14
Consider the market for 2-packs of light bulbs below.
​
   ​
-Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Accepted Answer

The answer of Figure 4-14
Consider the market for 2-packs of...

Question 9

If consumers often purchase pastries to eat while they drink their cappuccinos at local coffee shops, what would happen to the equilibrium price and quantity of cappuccinos if the price of pastries falls?

Accepted Answer

A) Both the equilibrium price and quantity would decrease. 
B) Both the equilibrium price and quantity would increase. 
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 decrease. 
B) Both the equilibrium price and quantity would increase. 
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 10

If the number of sellers in a market increases, then the

Accepted Answer

A) demand in that market will increase. 
B) supply in that market will increase. 
C) supply in that market will decrease. 
D) demand in that market will decrease. 
A) demand in that market will increase. 
B) supply in that market will increase. 
C) supply in that market will decrease. 
D) demand in that market will decrease.

Question 11

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Accepted Answer

A) increases. 
B) decreases. 
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) increases. 
B) decreases. 
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 12

Table 4-2
​
​
   ​
​
-Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded

Accepted Answer

A) increases by 2 units. 
B) decreases by 5 units. 
C) increases by 10 units. 
D) increases by 14 units. 
A) increases by 2 units. 
B) decreases by 5 units. 
C) increases by 10 units. 
D) increases by 14 units.

Question 13

Figure 4-6  
-Refer to Figure 4-6. The shift from S' to S is called

Accepted Answer

A) an increase in supply. 
B) a decrease in quantity supplied. 
C) a decrease in supply. 
D) an increase in quantity supplied. 
A) an increase in supply. 
B) a decrease in quantity supplied. 
C) a decrease in supply. 
D) an increase in quantity supplied.

Question 14

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 15

At the equilibrium price, quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 16

Suppose goods A and B are complements. If the price of good A increases, will the demand for good B increase or decrease?

Accepted Answer

The demand

Question 17

A decrease in the price of a good will

Accepted Answer

A) increase demand. 
B) decrease demand. 
C) decrease quantity demanded. 
D) increase quantity demanded. 
A) increase demand. 
B) decrease demand. 
C) decrease quantity demanded. 
D) increase quantity demanded.

Exam 4: The Market Forces of Supply and Demand

Which of the following is not a determinant of the demand for a particular good?

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

A baker recently has come to expect higher prices for bread in the near future. We would expect

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

In a competitive market, there are so few buyers and so few sellers that each has a significant impact on the market price.

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Figure 4-14 Consider the market for 2-packs of light bulbs below. ​ ​ -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

If consumers often purchase pastries to eat while they drink their cappuccinos at local coffee shops, what would happen to the equilibrium price and quantity of cappuccinos if the price of pastries falls?

If the number of sellers in a market increases, then the

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Table 4-2 ​ ​ ​ ​ -Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded

Figure 4-6 -Refer to Figure 4-6. The shift from S' to S is called

Monopolists are price takers.

At the equilibrium price, quantity demanded is equal to quantity supplied.

Suppose goods A and B are complements. If the price of good A increases, will the demand for good B increase or decrease?

A decrease in the price of a good will

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

Figure 4-14 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then when the price decreases from $2.00 to $1.50, the market quantity demanded