Question 1

If macaroni and cheese is an inferior good,what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

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 2

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Accepted Answer

A) True 
 B)False

Question 3

When the price of a good is lower than the equilibrium price,

Accepted Answer

A)  a surplus will exist. 
B)  buyers desire to purchase more than is produced. 
C)  sellers desire to produce and sell more than buyers wish to purchase. 
D)  quantity supplied exceeds quantity demanded. 
A)  a surplus will exist. 
B)  buyers desire to purchase more than is produced. 
C)  sellers desire to produce and sell more than buyers wish to purchase. 
D)  quantity supplied exceeds quantity demanded.

Question 4

If the demand for 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 both to increase. 
D)  and equilibrium quantity both to decrease. 
A)  to increase and equilibrium quantity to decrease. 
B)  to decrease and equilibrium quantity to increase. 
C)  and equilibrium quantity both to increase. 
D)  and equilibrium quantity both to decrease.

Question 5

When the price of a good is higher than the equilibrium price,

Accepted Answer

A)  a shortage will exist. 
B)  buyers desire to purchase more than is produced. 
C)  sellers desire to produce and sell more than buyers wish to purchase. 
D)  quantity demanded exceeds quantity supplied. 
A)  a shortage will exist. 
B)  buyers desire to purchase more than is produced. 
C)  sellers desire to produce and sell more than buyers wish to purchase. 
D)  quantity demanded exceeds quantity supplied.

Question 6

A supply schedule is a table that shows the relationship between

Accepted Answer

A)  price and quantity supplied. 
B)  input costs and quantity supplied. 
C)  quantity demanded and quantity supplied. 
D)  profit and quantity supplied. 
A)  price and quantity supplied. 
B)  input costs and quantity supplied. 
C)  quantity demanded and quantity supplied. 
D)  profit and quantity supplied.

Question 7

Another term for equilibrium price is

Accepted Answer

A)  dynamic price. 
B)  market-clearing price. 
C)  quantity-defining price. 
D)  balance price. 
A)  dynamic price. 
B)  market-clearing price. 
C)  quantity-defining price. 
D)  balance price.

Question 8

When supply and demand both increase,equilibrium

Accepted Answer

A)  price will increase. 
B)  price will decrease. 
C)  quantity may increase, decrease, or remain unchanged. 
D)  price may increase, decrease, or remain unchanged. 
A)  price will increase. 
B)  price will decrease. 
C)  quantity may increase, decrease, or remain unchanged. 
D)  price may increase, decrease, or remain unchanged.

Question 9

Figure 4-11
  
-Refer to Figure 4-11.If these are the only two sellers in the market,then the market quantity supplied at a price of $4 is

Accepted Answer

A)  6 units. 
B)  7 units. 
C)  8 units. 
D)  14 units. 
A)  6 units. 
B)  7 units. 
C)  8 units. 
D)  14 units.

Question 10

An increase in the price of a good would

Accepted Answer

A)  increase the supply of the good. 
B)  increase the amount purchased by buyers. 
C)  give producers an incentive to produce more. 
D)  decrease both the quantity demanded of the good and the quantity supplied of the good. 
A)  increase the supply of the good. 
B)  increase the amount purchased by buyers. 
C)  give producers an incentive to produce more. 
D)  decrease both the quantity demanded of the good and the quantity supplied of the good.

Question 11

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase. 
A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase.

Question 12

Which of the following events must cause equilibrium quantity to rise?

Accepted Answer

A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase 
A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase

Question 13

Figure 4-15
  
-Refer to Figure 4-15.At the equilibrium price,

Accepted Answer

A)  200 units would be supplied and demanded. 
B)  400 units would be supplied and demanded. 
C)  600 units would be supplied and demanded. 
D)  600 units would be supplied, but only 200 would be demanded. 
A)  200 units would be supplied and demanded. 
B)  400 units would be supplied and demanded. 
C)  600 units would be supplied and demanded. 
D)  600 units would be supplied, but only 200 would be demanded.

Question 14

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 15

Figure 4-1
  
-Refer to Figure 4-1.It is apparent from the figure that the

Accepted Answer

A)  good is inferior. 
B)  demand for the good decreases as income increases. 
C)  demand for the good conforms to the law of demand. 
D)  All of the above are correct. 
A)  good is inferior. 
B)  demand for the good decreases as income increases. 
C)  demand for the good conforms to the law of demand. 
D)  All of the above are correct.

Question 16

Figure 4-2

-Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $6 is

Accepted Answer

A)  4 units. 
B)  6 units. 
C)  8 units. 
D)  12 units. 
A)  4 units. 
B)  6 units. 
C)  8 units. 
D)  12 units.

Question 17

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 18

When all market participants are price takers who have no influence over prices,the markets have

Accepted Answer

A)  only a few buyers and sellers. 
B)  numerous sellers but only a few buyers. 
C)  numerous buyers but only a few sellers. 
D)  numerous buyers and sellers. 
A)  only a few buyers and sellers. 
B)  numerous sellers but only a few buyers. 
C)  numerous buyers but only a few sellers. 
D)  numerous buyers and sellers.

Question 19

A decrease in supply shifts the supply curve to the left.

Accepted Answer

A) True 
 B)False

Question 20

A market supply curve is determined by

Accepted Answer

A)  vertically summing individual supply curves. 
B)  horizontally summing individual supply curves. 
C)  finding the average quantity supplied by sellers at each possible price. 
D)  finding the average price at which sellers are willing and able to sell a particular quantity of the good. 
A)  vertically summing individual supply curves. 
B)  horizontally summing individual supply curves. 
C)  finding the average quantity supplied by sellers at each possible price. 
D)  finding the average price at which sellers are willing and able to sell a particular quantity of the good.

Exam 4: The Market Forces of Supply and Demand.

If macaroni and cheese is an inferior good,what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

When the price of a good is lower than the equilibrium price,

If the demand for a product increases,then we would expect equilibrium price

When the price of a good is higher than the equilibrium price,

A supply schedule is a table that shows the relationship between

Another term for equilibrium price is

When supply and demand both increase,equilibrium

Figure 4-11 -Refer to Figure 4-11.If these are the only two sellers in the market,then the market quantity supplied at a price of $4 is

An increase in the price of a good would

The quantity demanded of a good is the amount that buyers are

Which of the following events must cause equilibrium quantity to rise?

Figure 4-15 -Refer to Figure 4-15.At the equilibrium price,

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

Figure 4-1 -Refer to Figure 4-1.It is apparent from the figure that the

Figure 4-2 -Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $6 is

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

When all market participants are price takers who have no influence over prices,the markets have

A decrease in supply shifts the supply curve to the left.

A market supply curve is determined by

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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