Question 1

A higher price for batteries would result in a(n)

Accepted Answer

A)  increase in the demand for flashlights. 
B)  decrease in the demand for flashlights. 
C)  increase in the demand for batteries. 
D)  decrease in the demand for batteries. 
A)  increase in the demand for flashlights. 
B)  decrease in the demand for flashlights. 
C)  increase in the demand for batteries. 
D)  decrease in the demand for batteries.

Question 2

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 3

Lead is an important input in the production of crystal.If the price of lead decreases,then we would expect the supply of

Accepted Answer

A)  crystal to be unaffected. 
B)  crystal to decrease. 
C)  crystal to increase. 
D)  lead to increase. 
A)  crystal to be unaffected. 
B)  crystal to decrease. 
C)  crystal to increase. 
D)  lead to increase.

Question 4

When quantity supplied increases at every possible price,we know that the supply curve has

Accepted Answer

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

Question 5

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Accepted Answer

A) True 
 B)False

Question 6

The forces that make market economies work are

Accepted Answer

A)  work and leisure. 
B)  politics and religion. 
C)  supply and demand. 
D)  taxes and government spending. 
A)  work and leisure. 
B)  politics and religion. 
C)  supply and demand. 
D)  taxes and government spending.

Question 7

Price will rise to eliminate a surplus.

Accepted Answer

A) True 
 B)False

Question 8

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

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 9

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities.
  
-Refer to Figure 4-20.All else equal,the return of college students to campus in the fall would cause a move from

Accepted Answer

A)  x to y. 
B)  y to x. 
C)  SA to SB. 
D)  SB to SA. 
A)  x to y. 
B)  y to x. 
C)  SA to SB. 
D)  SB to SA.

Question 10

If the supply of a product decreases,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 11

If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Accepted Answer

A) True 
 B)False

Question 12

A group of buyers and sellers of a particular good or service is called a(n)

Accepted Answer

A)  coalition. 
B)  economy. 
C)  market. 
D)  competition. 
A)  coalition. 
B)  economy. 
C)  market. 
D)  competition.

Question 13

In competitive markets,

Accepted Answer

A)  firms produce identical products. 
B)  no individual buyer can influence the market price. 
C)  no individual seller can influence the market price. 
D)  All of the above are correct. 
A)  firms produce identical products. 
B)  no individual buyer can influence the market price. 
C)  no individual seller can influence the market price. 
D)  All of the above are correct.

Question 14

Once the demand curve for a product or service is drawn,it

Accepted Answer

A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time. 
A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time.

Question 15

Figure 4-19
The diagram below pertains to the demand for turkey in the United States.
  
-Refer to Figure 4-19.All else equal,a sale on chicken would cause a move from

Accepted Answer

A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x. 
A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x.

Question 16

Figure 4-19
The diagram below pertains to the demand for turkey in the United States.
  
-Refer to Figure 4-19.All else equal,sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x. 
A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x.

Question 17

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

Which of the following does not affect an individual's demand curve?

Accepted Answer

A)  expectations 
B)  income 
C)  prices of related goods 
D)  the number of buyers 
A)  expectations 
B)  income 
C)  prices of related goods 
D)  the number of buyers

Question 20

If sellers expect higher basket prices in the near future,the current

Accepted Answer

A)  supply of baskets will increase. 
B)  supply of baskets will decrease. 
C)  supply of baskets will be unaffected. 
D)  demand for baskets will decrease. 
A)  supply of baskets will increase. 
B)  supply of baskets will decrease. 
C)  supply of baskets will be unaffected. 
D)  demand for baskets will decrease.

Exam 4: The Market Forces of Supply and Demand.

A higher price for batteries would result in a(n)

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?

Lead is an important input in the production of crystal.If the price of lead decreases,then we would expect the supply of

When quantity supplied increases at every possible price,we know that the supply curve has

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

The forces that make market economies work are

Price will rise to eliminate a surplus.

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,the return of college students to campus in the fall would cause a move from

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

If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the left.

A group of buyers and sellers of a particular good or service is called a(n)

In competitive markets,

Once the demand curve for a product or service is drawn,it

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,a sale on chicken would cause a move from

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,sellers expecting the price of turkey to rise in the future would cause a current move from

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

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

Which of the following does not affect an individual's demand curve?

If sellers expect higher basket prices in the near future,the current

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.

Application: 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 Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

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