Question 1

To find the market demand for a product,how are individual demand curves summed

Accepted Answer

A) vertically 
B) diagonally 
C) horizontally 
D) by averaging 
A) vertically 
B) diagonally 
C) horizontally 
D) by averaging

Question 2

Price,which is determined by all buyers and sellers as they interact in the marketplace,allocates the economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that health officials have argued that eating too much sugar might be harmful to human health.As a result,there has been a significant decrease in the amount of sugar produced.Which of the following best explains the decrease in production

Accepted Answer

A) Sugar producers, concerned about the health of their customers, decided to produce relatively less sugar. 
B) Government officials, concerned about consumer health, ordered sugar producers to produce relatively less sugar. 
C) Individual consumers, concerned about their own health, decreased their demand for sugar, which lowered the relative price of sugar, making it less attractive to produce. 
D) Anti-sugar protesters have made it difficult for both buyers and sellers of sugar to meet in the marketplace. 
A) Sugar producers, concerned about the health of their customers, decided to produce relatively less sugar. 
B) Government officials, concerned about consumer health, ordered sugar producers to produce relatively less sugar. 
C) Individual consumers, concerned about their own health, decreased their demand for sugar, which lowered the relative price of sugar, making it less attractive to produce. 
D) Anti-sugar protesters have made it difficult for both buyers and sellers of sugar to meet in the marketplace.

Question 4

This question deals with demand and supply and refers you to the table below.
a.Given the table,graph the demand and supply curves for flashlights.Make certain to label equilibrium price and equilibrium quantity.   
b.What is the equilibrium price and equilibrium quantity??
c.Suppose the price is currently at $5.What problem would exist in the economy? What would you expect to happen to price? Show this on your graph.?
d.Suppose the price is currently $2.What problem exists in the economy? What would you expect to happen to price? Show this on your graph.

Accepted Answer

a. @#IMG-DLM&
b.Equilibrium price would be $4 and

Question 5

If the supply of a product decreases,what would we expect

Accepted Answer

A) equilibrium price to increase and equilibrium quantity to decrease 
B) equilibrium price to decrease and equilibrium quantity to increase 
C) equilibrium price and equilibrium quantity to both increase 
D) equilibrium price and equilibrium quantity to both decrease 
A) equilibrium price to increase and equilibrium quantity to decrease 
B) equilibrium price to decrease and equilibrium quantity to increase 
C) equilibrium price and equilibrium quantity to both increase 
D) equilibrium price and equilibrium quantity to both decrease

Question 6

Market demand is given as QD = 120 - 2P.Market supply is given as QS = 2P + 40.What would result if the market price were $50

Accepted Answer

A) a shortage of 120 
B) a surplus of 120 
C) a surplus of 140 
D) a shortage of 140 
A) a shortage of 120 
B) a surplus of 120 
C) a surplus of 140 
D) a shortage of 140

Question 7

If two goods are substitutes,what happens if there is a decrease in the price of one good

Accepted Answer

A) It increases the demand for the other good. 
B) It reduces the demand for the other good. 
C) It reduces the quantity demanded of the other good. 
D) It increases the quantity demanded of the other good. 
A) It increases the demand for the other good. 
B) It reduces the demand for the other good. 
C) It reduces the quantity demanded of the other good. 
D) It increases the quantity demanded of the other good.

Question 8

Which best describes the relationship shown by a demand table

Accepted Answer

A) the price of a good and the quantity supplied 
B) income and the quantity of the good demanded 
C) the price of a good and the quantity buyers are willing and able to purchase 
D) the number of buyers and the quantity demanded 
A) the price of a good and the quantity supplied 
B) income and the quantity of the good demanded 
C) the price of a good and the quantity buyers are willing and able to purchase 
D) the number of buyers and the quantity demanded

Question 9

If buyers now wanted to purchase larger quantities of a soft drink,what do we know about its demand curve

Accepted Answer

A) The demand curve for soft drinks would shift to the left. 
B) We would move down the demand curve for soft drinks. 
C) The demand curve for soft drinks would shift to the right. 
D) We would move up the demand curve for soft drinks. 
A) The demand curve for soft drinks would shift to the left. 
B) We would move down the demand curve for soft drinks. 
C) The demand curve for soft drinks would shift to the right. 
D) We would move up the demand curve for soft drinks.

Question 10

Table 4-3
The table shows individual demand schedules for a market.
 
-Refer to the Table 4-3.When the price of the good is $1.50,what is the quantity demanded in this market

Accepted Answer

A) 14 units 
B) 24 units 
C) 31 units 
D) 42 units 
A) 14 units 
B) 24 units 
C) 31 units 
D) 42 units

Question 11

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

Accepted Answer

A) a decrease in the price of the good 
B) an increase in the price of the good 
C) an increase in technology 
D) a decrease in input prices 
A) a decrease in the price of the good 
B) an increase in the price of the good 
C) an increase in technology 
D) a decrease in input prices

Question 12

Market demand is given as Qd =150 - P.Market supply is given as QS = 4P.What would result if the market price were $40

Accepted Answer

A) a shortage of 110 
B) a surplus of 110 
C) a surplus of 50 
D) a shortage of 50 
A) a shortage of 110 
B) a surplus of 110 
C) a surplus of 50 
D) a shortage of 50

Question 13

Figure 4-9
  
-Refer to the Figure 4-9.Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking

Accepted Answer

A) graph a 
B) graph b 
C) graph c 
D) both a and c could be used to show the result 
A) graph a 
B) graph b 
C) graph c 
D) both a and c could be used to show the result

Question 14

Which of the following are the words most commonly used by economists

Accepted Answer

A) surplus and shortage 
B) scarcity and human wants 
C) supply and demand 
D) price and quantity 
A) surplus and shortage 
B) scarcity and human wants 
C) supply and demand 
D) price and quantity

Question 15

What are the roles of buyers and sellers in a perfectly competitive market

Accepted Answer

A) Buyers determine supply and sellers determine demand. 
B) Buyers determine demand and sellers determine supply. 
C) Buyers and sellers as one group determine supply. 
D) Buyers and sellers as one group determine demand. 
A) Buyers determine supply and sellers determine demand. 
B) Buyers determine demand and sellers determine supply. 
C) Buyers and sellers as one group determine supply. 
D) Buyers and sellers as one group determine demand.

Question 16

Market demand is given as QD = 120 - 2P.Market supply is given as QS = 2P + 40.What would result if the market price were $10

Accepted Answer

A) a shortage of 40 
B) a surplus of 40 
C) a surplus of 80 
D) a shortage of 80 
A) a shortage of 40 
B) a surplus of 40 
C) a surplus of 80 
D) a shortage of 80

Question 17

If the price of a substitute to good X increases,what will happen

Accepted Answer

A) Demand for good X will decrease. 
B) Market price of good X will decrease. 
C) Demand for good X will increase. 
D) Quantity demanded for good X will increase. 
A) Demand for good X will decrease. 
B) Market price of good X will decrease. 
C) Demand for good X will increase. 
D) Quantity demanded for good X will increase.

Question 18

Market demand is given as QD = 200 - 3P.Market supply is given as QS = P + 10.If price increases from $35 to $40,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 1.3 
C) 3.0 
D) 4.4 
A) 0.3 
B) 1.3 
C) 3.0 
D) 4.4

Question 19

What could be one result of a cold snap in Florida

Accepted Answer

A) an increase in farm machinery prices 
B) an increase in the price of diesel fuel used in farming 
C) an increase in migrant farm workers' wages 
D) an increase in the price of oranges 
A) an increase in farm machinery prices 
B) an increase in the price of diesel fuel used in farming 
C) an increase in migrant farm workers' wages 
D) an increase in the price of oranges

Question 20

What is the term for the behaviour of people as they interact with one another in markets

Accepted Answer

A) economics 
B) interaction 
C) demand and supply 
D) social psychology 
A) economics 
B) interaction 
C) demand and supply 
D) social psychology

Exam 4: The Market Forces of Supply and Demand

To find the market demand for a product,how are individual demand curves summed

Price,which is determined by all buyers and sellers as they interact in the marketplace,allocates the economy's scarce resources.

Suppose that health officials have argued that eating too much sugar might be harmful to human health.As a result,there has been a significant decrease in the amount of sugar produced.Which of the following best explains the decrease in production

If the supply of a product decreases,what would we expect

Market demand is given as QD = 120 - 2P.Market supply is given as QS = 2P + 40.What would result if the market price were $50

If two goods are substitutes,what happens if there is a decrease in the price of one good

Which best describes the relationship shown by a demand table

If buyers now wanted to purchase larger quantities of a soft drink,what do we know about its demand curve

Table 4-3 The table shows individual demand schedules for a market. -Refer to the Table 4-3.When the price of the good is $1.50,what is the quantity demanded in this market

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

Market demand is given as Qd =150 - P.Market supply is given as QS = 4P.What would result if the market price were $40

Figure 4-9 -Refer to the Figure 4-9.Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking

Which of the following are the words most commonly used by economists

What are the roles of buyers and sellers in a perfectly competitive market

Market demand is given as QD = 120 - 2P.Market supply is given as QS = 2P + 40.What would result if the market price were $10

If the price of a substitute to good X increases,what will happen

Market demand is given as QD = 200 - 3P.Market supply is given as QS = P + 10.If price increases from $35 to $40,what is the price elasticity of demand

What could be one result of a cold snap in Florida

What is the term for the behaviour of people as they interact with one another in markets

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= 120 - 2P.Market supply is given as Q_S= 2P + 40.What would result if the market price were $50

Market demand is given as Qd =150 - P.Market supply is given as Q_S= 4P.What would result if the market price were $40

Market demand is given as Q_D= 120 - 2P.Market supply is given as Q_S= 2P + 40.What would result if the market price were $10

Market demand is given as Q_D= 200 - 3P.Market supply is given as Q_S= P + 10.If price increases from $35 to $40,what is the price elasticity of demand