Question 1

A decrease in demand will cause a decrease in price, which will cause a decrease in supply.

Accepted Answer

A) True 
 B)False

Question 2

A decrease in the price of a good will

Accepted Answer

A) increase supply. 
B) decrease supply. 
C) increase quantity supplied. 
D) decrease quantity supplied. 
A) increase supply. 
B) decrease supply. 
C) increase quantity supplied. 
D) decrease quantity supplied.

Question 3

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are

Accepted Answer

A) a substitute good. 
B) a normal good. 
C) an inferior good. 
D) a complementary good. 
A) a substitute good. 
B) a normal good. 
C) an inferior good. 
D) a complementary good.

Question 4

Today, producers changed their expectations about the future. This change

Accepted Answer

A) can cause a movement along the supply curve. 
B) can affect future supply, but not today's supply. 
C) can affect today's supply. 
D) cannot affect either today's supply or future supply. 
A) can cause a movement along the supply curve. 
B) can affect future supply, but not today's supply. 
C) can affect today's supply. 
D) cannot affect either today's supply or future supply.

Question 5

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. If the price were $12, a

Accepted Answer

A) shortage of 10 units would exist, and price would tend to rise. 
B) surplus of 25 units would exist, and price would tend to fall. 
C) shortage of 25 units would exist, and price would tend to rise. 
D) surplus of 10 units would exist, and price would tend to fall. 
A) shortage of 10 units would exist, and price would tend to rise. 
B) surplus of 25 units would exist, and price would tend to fall. 
C) shortage of 25 units would exist, and price would tend to rise. 
D) surplus of 10 units would exist, and price would tend to fall.

Question 6

The line that relates the price of a good and the quantity supplied of that good is called the supply

Accepted Answer

A) schedule, and it usually slopes upward. 
B) schedule, and it usually slopes downward. 
C) curve, and it usually slopes upward. 
D) curve, and it usually slopes downward. 
A) schedule, and it usually slopes upward. 
B) schedule, and it usually slopes downward. 
C) curve, and it usually slopes upward. 
D) curve, and it usually slopes downward.

Question 7

Figure 4-14
Consider the market for 2-packs of light bulbs below.
​
   ​
-Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Accepted Answer

Equilibrium price de

Question 8

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 9

A competitive market is a market in which

Accepted Answer

A) an auctioneer helps set prices and arrange sales. 
B) there are only a few sellers. 
C) the forces of supply and demand do not apply. 
D) no individual buyer or seller has any significant impact on the market price. 
A) an auctioneer helps set prices and arrange sales. 
B) there are only a few sellers. 
C) the forces of supply and demand do not apply. 
D) no individual buyer or seller has any significant impact on the market price.

Question 10

Figure 4-6  
-Refer to Figure 4-6. The shift from S to S' could be caused by

Accepted Answer

A) a decrease in the number of sellers. 
B) an improvement in production technology. 
C) an increase in income. 
D) a decrease in the price of the good. 
A) a decrease in the number of sellers. 
B) an improvement in production technology. 
C) an increase in income. 
D) a decrease in the price of the good.

Question 11

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 12

A demand schedule is a table that shows the relationship between

Accepted Answer

A) quantity demanded and quantity supplied. 
B) income and quantity demanded. 
C) price and quantity demanded. 
D) price and income. 
A) quantity demanded and quantity supplied. 
B) income and quantity demanded. 
C) price and quantity demanded. 
D) price and income.

Question 13

A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 14

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 15

Individual demand curves are summed vertically to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 16

A market's equilibrium is the point at which the supply and demand curves intersect.

Accepted Answer

A) True 
 B)False

Question 17

In a perfectly competitive market, buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 18

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.
 $$\begin{array} { | l | l | l | l |} 
\hline & \text { No Change in Supply } & \text { An Increase in Supply } & \text { A Decrease in Supply } \
\hline \begin{array} { l } 
\text { No Change in } \
\text { Demand }
\end{array} & & & \
\hline \text { An Increase in } & & & \
 \text { Demand } & & & \
\hline \text { A Decrease in } & & & \
\text { Demand } & & & \
\hline
\end{array}$$

Accepted Answer

The answer of Fill in the table below, showing whether...

Question 19

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-13
   ​
-Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Accepted Answer

Equilibrium price is

Exam 4: The Market Forces of Supply and Demand

A decrease in demand will cause a decrease in price, which will cause a decrease in supply.

A decrease in the price of a good will

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are

Today, producers changed their expectations about the future. This change

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. If the price were $12, a

The line that relates the price of a good and the quantity supplied of that good is called the supply

Figure 4-14 Consider the market for 2-packs of light bulbs below. ​ ​ -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

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

A competitive market is a market in which

Figure 4-6 -Refer to Figure 4-6. The shift from S to S' could be caused by

Baseballs and baseball bats are substitute goods.

A demand schedule is a table that shows the relationship between

A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Individual demand curves are summed vertically to obtain the market demand curve.

A market's equilibrium is the point at which the supply and demand curves intersect.

In a perfectly competitive market, buyers and sellers are price setters.

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously. No Change in Supply An Increase in Supply A Decrease in Supply No Change in Demand An Increase in Demand A Decrease in Demand

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Figure 4-13 ​ -Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

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. If the price were $12, a

Figure 4-14 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Figure 4-13 -Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.