Question 1

Which of the following demonstrates the law of demand?

Accepted Answer

A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. 
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. 
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. 
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way. 
A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. 
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. 
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. 
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

Question 2

Figure 4-16
  
-Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

Accepted Answer

A)  demand predicts that the price will rise by $2 to eliminate the shortage. 
B)  supply predicts that the price will rise by $2 to eliminate the shortage. 
C)  supply and demand predicts that the price will rise by $2 to eliminate the shortage. 
D)  supply and demand predicts that the price will fall by $2 to eliminate the shortage. 
A)  demand predicts that the price will rise by $2 to eliminate the shortage. 
B)  supply predicts that the price will rise by $2 to eliminate the shortage. 
C)  supply and demand predicts that the price will rise by $2 to eliminate the shortage. 
D)  supply and demand predicts that the price will fall by $2 to eliminate the shortage.

Question 3

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Accepted Answer

A) True 
 B)False

Question 4

In a given market,how are the equilibrium price and the market-clearing price related?

Accepted Answer

A)  There is no relationship. 
B)  They are the same price. 
C)  The market-clearing price exceeds the equilibrium price. 
D)  The equilibrium price exceeds the market-clearing price. 
A)  There is no relationship. 
B)  They are the same price. 
C)  The market-clearing price exceeds the equilibrium price. 
D)  The equilibrium price exceeds the market-clearing price.

Question 5

Figure 4-16
  
-Refer to Figure 4-16.If price in this market is currently $14,then there would be a(n)

Accepted Answer

A)  surplus of 20 units. The law of supply and demand predicts that the price will rise from $14 to a higher price. 
B)  excess supply of 20 units. The law of supply and demand predicts that the price will fall from $14 to a lower price. 
C)  surplus of 40 units. The law of supply and demand predicts that the price will rise from $14 to a higher price. 
D)  excess supply of 40 units. The law of supply and demand predicts that the price will fall from $14 to a lower price. 
A)  surplus of 20 units. The law of supply and demand predicts that the price will rise from $14 to a higher price. 
B)  excess supply of 20 units. The law of supply and demand predicts that the price will fall from $14 to a lower price. 
C)  surplus of 40 units. The law of supply and demand predicts that the price will rise from $14 to a higher price. 
D)  excess supply of 40 units. The law of supply and demand predicts that the price will fall from $14 to a lower price.

Question 6

Workers at a bicycle assembly plant currently earn the mandatory minimum wage.If the federal government increases the minimum wage by $1.00 per hour,then it is likely that the

Accepted Answer

A)  demand for bicycle assembly workers will increase. 
B)  supply of bicycles will shift to the right. 
C)  supply of bicycles will shift to the left. 
D)  firm must increase output to maintain profit levels. 
A)  demand for bicycle assembly workers will increase. 
B)  supply of bicycles will shift to the right. 
C)  supply of bicycles will shift to the left. 
D)  firm must increase output to maintain profit levels.

Question 7

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

Accepted Answer

A)  increase in the demand for bagels. 
B)  decrease in the demand for bagels. 
C)  increase in the demand for muffins. 
D)  decrease in the demand for muffins. 
A)  increase in the demand for bagels. 
B)  decrease in the demand for bagels. 
C)  increase in the demand for muffins. 
D)  decrease in the demand for muffins.

Question 8

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 $10 is

Accepted Answer

A)  0 units. 
B)  4 units. 
C)  10 units. 
D)  12 units. 
A)  0 units. 
B)  4 units. 
C)  10 units. 
D)  12 units.

Question 9

Holding the nonprice determinants of supply constant,a change in price would

Accepted Answer

A)  result in either a decrease in supply or an increase in supply. 
B)  result in a movement along a stationary supply curve. 
C)  result in a shift of demand. 
D)  have no effect on the quantity supplied. 
A)  result in either a decrease in supply or an increase in supply. 
B)  result in a movement along a stationary supply curve. 
C)  result in a shift of demand. 
D)  have no effect on the quantity supplied.

Question 10

A improvement in production technology will shift the

Accepted Answer

A)  supply curve to the right. 
B)  supply curve to the left. 
C)  demand curve to the right. 
D)  demand curve to the left. 
A)  supply curve to the right. 
B)  supply curve to the left. 
C)  demand curve to the right. 
D)  demand curve to the left.

Question 11

In a competitive market,the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)  buyers. 
B)  sellers. 
C)  both buyers and sellers. 
D)  None of the above is correct. 
A)  buyers. 
B)  sellers. 
C)  both buyers and sellers. 
D)  None of the above is correct.

Question 12

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)  only Harry's 
B)  only Darby's 
C)  both Harry's and Darby's 
D)  neither Harry's nor Darby's 
A)  only Harry's 
B)  only Darby's 
C)  both Harry's and Darby's 
D)  neither Harry's nor Darby's

Question 13

Figure 4-7

-Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a),the arrows are consistent with which of the following events?

Accepted Answer

A)  Tobacco and marijuana are complements, and the price of marijuana decreased. 
B)  Tobacco is a "gateway drug," and the price of marijuana increased. 
C)  The price of cigarettes increased. 
D)  The arrows are consistent with all of these events. 
A)  Tobacco and marijuana are complements, and the price of marijuana decreased. 
B)  Tobacco is a "gateway drug," and the price of marijuana increased. 
C)  The price of cigarettes increased. 
D)  The arrows are consistent with all of these events.

Question 14

If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 15

Figure 4-22

-Refer to Figure 4-22.Which of the four panels illustrates an increase in quantity demanded?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) 
A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d)

Question 16

A shortage is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 17

What will happen in the artichoke market now if buyers expect higher artichoke prices in the near future?

Accepted Answer

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

Question 18

Soup is an inferior good if the demand

Accepted Answer

A)  for soup falls when the price of a substitute for soup rises. 
B)  for soup rises when the price of soup falls. 
C)  curve for soup slopes upward. 
D)  for soup falls when income rises. 
A)  for soup falls when the price of a substitute for soup rises. 
B)  for soup rises when the price of soup falls. 
C)  curve for soup slopes upward. 
D)  for soup falls when income rises.

Question 19

The two words most often used by economists are

Accepted Answer

A)  prices and quantities. 
B)  resources and allocation. 
C)  supply and demand. 
D)  efficiency and equity. 
A)  prices and quantities. 
B)  resources and allocation. 
C)  supply and demand. 
D)  efficiency and equity.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand.

Which of the following demonstrates the law of demand?

Figure 4-16 -Refer to Figure 4-16.If there is currently a shortage of 20 units of the good,then the law of

A decrease in the price of sugar will shift the supply curve for cookies to the right.

In a given market,how are the equilibrium price and the market-clearing price related?

Figure 4-16 -Refer to Figure 4-16.If price in this market is currently $14,then there would be a(n)

Workers at a bicycle assembly plant currently earn the mandatory minimum wage.If the federal government increases the minimum wage by $1.00 per hour,then it is likely that the

If muffins and bagels are substitutes,a higher price for bagels would result in a(n)

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 $10 is

Holding the nonprice determinants of supply constant,a change in price would

A improvement in production technology will shift the

In a competitive market,the quantity of a product produced and the price of the product are determined by

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Figure 4-7 -Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a),the arrows are consistent with which of the following events?

If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates an increase in quantity demanded?

A shortage is the same as an excess demand.

What will happen in the artichoke market now if buyers expect higher artichoke prices in the near future?

Soup is an inferior good if the demand

The two words most often used by economists are

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

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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