Question 1

A decrease in input costs to firms in a market will result in a(n)

Accepted Answer

A)  decrease in equilibrium price and an increase in equilibrium quantity. 
B)  decrease in equilibrium price and a decrease in equilibrium quantity. 
C)  increase in equilibrium price and a decrease in equilibrium quantity. 
D)  increase in equilibrium price and an increase in equilibrium quantity. 
A)  decrease in equilibrium price and an increase in equilibrium quantity. 
B)  decrease in equilibrium price and a decrease in equilibrium quantity. 
C)  increase in equilibrium price and a decrease in equilibrium quantity. 
D)  increase in equilibrium price and an increase in equilibrium quantity.

Question 2

Which of these statements best represents the law of supply?

Accepted Answer

A)  When input prices increase, sellers produce less of the good. 
B)  When production technology improves, sellers produce less of the good. 
C)  When the price of a good decreases, sellers produce less of the good. 
D)  When sellers' supplies of a good increase, the price of the good increases. 
A)  When input prices increase, sellers produce less of the good. 
B)  When production technology improves, sellers produce less of the good. 
C)  When the price of a good decreases, sellers produce less of the good. 
D)  When sellers' supplies of a good increase, the price of the good increases.

Question 3

The actions of buyers and sellers naturally move markets toward equilibrium.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A)  a change in income 
B)  a change in the price of the good or service 
C)  a change in expectations about the future price of the good or service 
D)  a change in the price of a related good or service 
A)  a change in income 
B)  a change in the price of the good or service 
C)  a change in expectations about the future price of the good or service 
D)  a change in the price of a related good or service

Question 5

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

Accepted Answer

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

Question 6

Table 4-3
  
-Refer to Table 4-3.If these are the only four buyers in the market,then the market quantity demanded at a price of $1 is

Accepted Answer

A)  4 units. 
B)  7.75 units. 
C)  14 units. 
D)  31 units. 
A)  4 units. 
B)  7.75 units. 
C)  14 units. 
D)  31 units.

Question 7

Figure 4-19
The diagram below pertains to the demand for turkey in the United States.
  
-Refer to Figure 4-19.All else equal,buyers expecting turkey to be more expensive 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 8

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

Accepted Answer

A)  decrease. 
B)  increase. 
C)  be unaffected. 
D)  There is insufficient information given to answer the question. 
A)  decrease. 
B)  increase. 
C)  be unaffected. 
D)  There is insufficient information given to answer the question.

Question 9

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 10

Which of the following is not held constant in a demand schedule?

Accepted Answer

A)  income 
B)  tastes 
C)  price 
D)  expectations 
A)  income 
B)  tastes 
C)  price 
D)  expectations

Question 11

Table 4-8
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows:
  
-Refer to Table 4-8.If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament,then what will be the equilibrium price?

Accepted Answer

A)  $10 
B)  $15 
C)  $20 
D)  $25 
A)  $10 
B)  $15 
C)  $20 
D)  $25

A decrease in input costs to firms in a market will result in a(n)

Which of these statements best represents the law of supply?

The actions of buyers and sellers naturally move markets toward equilibrium.

Which of the following changes would not shift the demand curve for a good or service?

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

Table 4-3 -Refer to Table 4-3.If these are the only four buyers in the market,then the market quantity demanded at a price of $1 is

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,buyers expecting turkey to be more expensive in the future would cause a current move from

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

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

Which of the following is not held constant in a demand schedule?

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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Exam 4: The Market Forces of Supply and Demand.

A decrease in input costs to firms in a market will result in a(n)

Which of these statements best represents the law of supply?

The actions of buyers and sellers naturally move markets toward equilibrium.

Which of the following changes would not shift the demand curve for a good or service?

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

Table 4-3 -Refer to Table 4-3.If these are the only four buyers in the market,then the market quantity demanded at a price of $1 is

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,buyers expecting turkey to be more expensive in the future would cause a current move from

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

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

Which of the following is not held constant in a demand schedule?

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.

Filters