Question 1

Anyone willing to pay the market price for a resource may have it.

Accepted Answer

A) True 
 B)False

Question 2

Pens are normal goods.What will happen to the equilibrium price of pens if the prices of pencils falls,consumers experience an increase in income,writing in ink becomes fashionable,people expect the price of pens to fall in the near future,the population increases,fewer firms manufacture pens,and the wages of pen-makers decrease

Accepted Answer

A) price will rise 
B) price will fall 
C) price will stay exactly the same 
D) price change will be ambiguous 
A) price will rise 
B) price will fall 
C) price will stay exactly the same 
D) price change will be ambiguous

Question 3

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

Question 4

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.What would result if the market price were $30

Accepted Answer

A) a shortage of 100 
B) a surplus of 100 
C) a surplus of 160 
D) a shortage of 160 
A) a shortage of 100 
B) a surplus of 100 
C) a surplus of 160 
D) a shortage of 160

Question 5

Market demand is given as QD = 40 - 2P.Market supply is given as QS = 2P.If price increases from $15 to $16,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 1.0 
C) 1.1 
D) 3.4 
A) 0.3 
B) 1.0 
C) 1.1 
D) 3.4

Question 6

What does supply-and-demand analysis involve

Accepted Answer

A) comparisons of products in different markets 
B) evaluation of buyers' reluctance to pay the market price 
C) comparing the old equilibrium and the new equilibrium 
D) evaluating the friction that develops between buyers and sellers 
A) comparisons of products in different markets 
B) evaluation of buyers' reluctance to pay the market price 
C) comparing the old equilibrium and the new equilibrium 
D) evaluating the friction that develops between buyers and sellers

Question 7

In what type of market do we refer to buyers and sellers as "price takers"

Accepted Answer

A) a perfectly competitive market 
B) a monopolistically competitive market 
C) an oligopolistic market 
D) a monopolistic market 
A) a perfectly competitive market 
B) a monopolistically competitive market 
C) an oligopolistic market 
D) a monopolistic market

Question 8

Market demand is given as QD = 300 - 6P.Market supply is given as QS = 4P.If price increases from $25 to $30,what is the price elasticity of demand

Accepted Answer

A) 0.7 
B) 0.8 
C) 1.0 
D) 1.2 
A) 0.7 
B) 0.8 
C) 1.0 
D) 1.2

Question 9

Which of the following cause and effect events are in order for a seller

Accepted Answer

A) an input price falls, profit falls, the supply curve shifts left 
B) an input price falls, profit rises, the supply curve shifts right 
C) an input price rises, profit falls, the supply curve shifts right 
D) an input price rises, profit rises, the supply curve shifts left 
A) an input price falls, profit falls, the supply curve shifts left 
B) an input price falls, profit rises, the supply curve shifts right 
C) an input price rises, profit falls, the supply curve shifts right 
D) an input price rises, profit rises, the supply curve shifts left

Question 10

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $385 to $390,what is the price elasticity of demand

Accepted Answer

A) 0.1 
B) 0.3 
C) 1.0 
D) 3.4 
A) 0.1 
B) 0.3 
C) 1.0 
D) 3.4

Question 11

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 12

New cars are normal goods.What will happen to the equilibrium price of new cars if the price of gasoline falls,the price of steel increases,public transportation becomes more expensive and less comfortable,auto workers receive higher wages,and automobile insurance becomes less expensive

Accepted Answer

A) price will rise 
B) price will fall 
C) price will stay exactly the same 
D) price change will be ambiguous 
A) price will rise 
B) price will fall 
C) price will stay exactly the same 
D) price change will be ambiguous

Question 13

If a good is "normal," what will an increase in income result in

Accepted Answer

A) an increase in supply of that good 
B) an increase in the demand for the good 
C) a decrease in the demand for the good 
D) a lower market price 
A) an increase in supply of that good 
B) an increase in the demand for the good 
C) a decrease in the demand for the good 
D) a lower market price

Question 14

Ryan tells you that he thinks the price of potato chips,his favourite food,will decrease in the near future.How will he probably respond

Accepted Answer

A) by decreasing his current demand for chips 
B) by not changing his current demand for chips 
C) by increasing his current demand for chips 
D) by currently refusing to buy any more chips 
A) by decreasing his current demand for chips 
B) by not changing his current demand for chips 
C) by increasing his current demand for chips 
D) by currently refusing to buy any more chips

Question 15

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $300 to $304,what is the price elasticity of demand

Accepted Answer

A) 0.2 
B) 1.0 
C) 1.5 
D) 3.0 
A) 0.2 
B) 1.0 
C) 1.5 
D) 3.0

Question 16

You have decided to purchase a new Mustang convertible.A friend tells you that Ford will be offering a $3000 rebate on Mustangs starting next month.As a result of this information,what will happen to your demand curve for Mustangs

Accepted Answer

A) could shift either right or left 
B) shifts right today 
C) curve will be unaffected 
D) shifts left today 
A) could shift either right or left 
B) shifts right today 
C) curve will be unaffected 
D) shifts left today

Question 17

The market demand is the average of all of the individual demands for a particular good or service.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-10
  
-Refer to the Figure 4-10.What is the movement from point B to point A on the graph called

Accepted Answer

A) a decrease in supply 
B) an increase in supply 
C) an increase in the quantity supplied 
D) a decrease in the quantity supplied 
A) a decrease in supply 
B) an increase in supply 
C) an increase in the quantity supplied 
D) a decrease in the quantity supplied

Question 19

If a seller in a competitive market chooses to charge more than the market price,what would happen

Accepted Answer

A) Buyers would tend to buy more from this seller. 
B) The owners of the raw materials used in production would raise the prices for the raw materials. 
C) Other sellers would also raise their prices. 
D) Buyers will tend to make purchases from other sellers. 
A) Buyers would tend to buy more from this seller. 
B) The owners of the raw materials used in production would raise the prices for the raw materials. 
C) Other sellers would also raise their prices. 
D) Buyers will tend to make purchases from other sellers.

Question 20

Figure 4-5
  
-Refer to the Figure 4-5.Which of the four graphs shown illustrates a decrease in quantity demanded

Accepted Answer

A) graph A 
B) graph B 
C) graph C 
D) graph D 
A) graph A 
B) graph B 
C) graph C 
D) graph D

Exam 4: The Market Forces of Supply and Demand

Anyone willing to pay the market price for a resource may have it.

Which of the following would NOT shift the demand curve for a good or service

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.What would result if the market price were $30

Market demand is given as QD = 40 - 2P.Market supply is given as QS = 2P.If price increases from $15 to $16,what is the price elasticity of demand

What does supply-and-demand analysis involve

In what type of market do we refer to buyers and sellers as "price takers"

Market demand is given as QD = 300 - 6P.Market supply is given as QS = 4P.If price increases from $25 to $30,what is the price elasticity of demand

Which of the following cause and effect events are in order for a seller

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $385 to $390,what is the price elasticity of demand

An increase in the price of pizza will shift the demand curve for pizza to the left.

New cars are normal goods.What will happen to the equilibrium price of new cars if the price of gasoline falls,the price of steel increases,public transportation becomes more expensive and less comfortable,auto workers receive higher wages,and automobile insurance becomes less expensive

If a good is "normal," what will an increase in income result in

Ryan tells you that he thinks the price of potato chips,his favourite food,will decrease in the near future.How will he probably respond

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $300 to $304,what is the price elasticity of demand

You have decided to purchase a new Mustang convertible.A friend tells you that Ford will be offering a $3000 rebate on Mustangs starting next month.As a result of this information,what will happen to your demand curve for Mustangs

The market demand is the average of all of the individual demands for a particular good or service.

Figure 4-10 -Refer to the Figure 4-10.What is the movement from point B to point A on the graph called

If a seller in a competitive market chooses to charge more than the market price,what would happen

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs shown illustrates a decrease in quantity demanded

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 Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Market demand is given as Q_D= 200 - 6P.Market supply is given as Q_S= 4P.What would result if the market price were $30

Market demand is given as Q_D= 40 - 2P.Market supply is given as Q_S= 2P.If price increases from $15 to $16,what is the price elasticity of demand

Market demand is given as Q_D= 300 - 6P.Market supply is given as Q_S= 4P.If price increases from $25 to $30,what is the price elasticity of demand

Market demand is given as Q_D= 250 - 0.5P.Market supply is given as Q_S= 2P.If price increases from $385 to $390,what is the price elasticity of demand

Market demand is given as Q_D= 250 - 0.5P.Market supply is given as Q_S= 2P.If price increases from $300 to $304,what is the price elasticity of demand