Question 1

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4-10  
-Refer to Figure 4-10. Which of the following movements would illustrate the effect of an improved oven that allows bakers to produce scones in less time on the market for scones?

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 3

Supply and demand together determine the price and quantity of a good sold in a market.

Accepted Answer

A) True 
 B)False

Question 4

If the demand for a good falls when income falls, then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 5

Local cable television companies frequently are monopolists.

Accepted Answer

A) True 
 B)False

Question 6

Two goods are substitutes when a decrease in the price of one good

Accepted Answer

A) decreases the demand for the other good. 
B) decreases the quantity demanded of the other good. 
C) increases the demand for the other good. 
D) increases the quantity demanded of the other good. 
A) decreases the demand for the other good. 
B) decreases the quantity demanded of the other good. 
C) increases the demand for the other good. 
D) increases the quantity demanded of the other good.

Question 7

Table 4-5
  
-Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market demand schedule is: ​
​
$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (Dollars per case) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Cases of water) }
\end{array} \
\hline 0.00 & 350 \
\hline 2.00 & 300 \
\hline 4.00 & 250 \
\hline 6.00 & 200 \
\hline
\end{array}$$ The equilibrium price and quantity are

Accepted Answer

A) $0.00 and 350 cases. 
B) $4.00 and 250 cases. 
C) $2.00 and 300 cases. 
D) $6.00 and 200 cases. 
A) $0.00 and 350 cases. 
B) $4.00 and 250 cases. 
C) $2.00 and 300 cases. 
D) $6.00 and 200 cases.

Question 8

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 9

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 10

An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Accepted Answer

A) True 
 B)False

Question 11

Suppose the number of buyers in a market increases 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 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 12

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous.

Accepted Answer

A) True 
 B)False

Question 13

If something happens to alter the quantity demanded at any given price, then

Accepted Answer

A) the demand curve becomes steeper. 
B) the demand curve becomes flatter. 
C) the demand curve shifts. 
D) we move along the demand curve. 
A) the demand curve becomes steeper. 
B) the demand curve becomes flatter. 
C) the demand curve shifts. 
D) we move along the demand curve.

Question 14

Table 4-9
The following table shows the supply and demand schedules in a market.
 $$\begin{array} { | l | l | l | } 
\hline \text { Price (\$) } & \begin{array} { l } 
\text { Quantity } \
\text { Demanded } \
\text { (units) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied } \
\text { (units) }
\end{array} \
\hline 0 & 50 & 0 \
\hline 2 & 40 & 15 \
\hline 4 & 30 & 30 \
\hline 6 & 20 & 45 \
\hline 8 & 10 & 60 \
\hline 10 & 0 & 75 \
\hline
\end{array}$$
-Refer to Table 4-9. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Table 4-9
The following table shows the supply...

Question 15

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 16

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Accepted Answer

A) True 
 B)False

Question 17

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Accepted Answer

A) Students would purchase fewer than 750 cups per day. 
B) Student would continue to purchase 750 cups per day. 
C) Students would purchase more than 750 cups per day. 
D) We do not have enough information to answer this question. 
A) Students would purchase fewer than 750 cups per day. 
B) Student would continue to purchase 750 cups per day. 
C) Students would purchase more than 750 cups per day. 
D) We do not have enough information to answer this question.

Question 18

Figure 4-11
​
   ​
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.

Accepted Answer

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

Question 19

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies, while all the other factors that affect how much consumers want to buy are held constant.

Accepted Answer

A) True 
 B)False

Question 20

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Figure 4-10 -Refer to Figure 4-10. Which of the following movements would illustrate the effect of an improved oven that allows bakers to produce scones in less time on the market for scones?

Supply and demand together determine the price and quantity of a good sold in a market.

If the demand for a good falls when income falls, then the good is called an inferior good.

Local cable television companies frequently are monopolists.

Two goods are substitutes when a decrease in the price of one good

Table 4-5 -Refer to Table 4-5. If the four suppliers listed are the only suppliers in this market and the market demand schedule is: ​ ​ Price (Dollars per case) Quantity Demanded (Cases of water) 0.00 350 2.00 300 4.00 250 6.00 200 The equilibrium price and quantity are

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

It is not possible for demand and supply to shift at the same time.

An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous.

If something happens to alter the quantity demanded at any given price, then

An increase in the price of a substitute good will shift the demand curve for a good to the right.

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Figure 4-11 ​ ​ -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies, while all the other factors that affect how much consumers want to buy are held constant.

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

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 4-11 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.