Question 1

Market demand is given as Qd =150 - 3P.Market supply is given as QS = 2P.What would result if the market price were $25

Accepted Answer

A) a shortage of 25 
B) a surplus of 25 
C) a surplus of 70 
D) a shortage of 70 
A) a shortage of 25 
B) a surplus of 25 
C) a surplus of 70 
D) a shortage of 70

Question 2

Market demand is given as QD = 80 - P.Market supply is given as QS = 3P.What would result if the market price were $10

Accepted Answer

A) a shortage of 20 
B) a surplus of 20 
C) a surplus of 40 
D) a shortage of 40 
A) a shortage of 20 
B) a surplus of 20 
C) a surplus of 40 
D) a shortage of 40

Question 3

How is a market supply curve constructed

Accepted Answer

A) by vertically summing individual supply curves 
B) by horizontally summing individual supply curves 
C) by finding the average quantity supplied of the market's individual supply curves 
D) by summing a consumer's demands for all goods 
A) by vertically summing individual supply curves 
B) by horizontally summing individual supply curves 
C) by finding the average quantity supplied of the market's individual supply curves 
D) by summing a consumer's demands for all goods

Question 4

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

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

Question 5

Which of the following reflects the downward-sloping demand curve

Accepted Answer

A) Price is positively related to quantity supplied. 
B) There is an inverse relationship between price and quantity demanded. 
C) There is a direct relationship between price and quantity demanded. 
D) When the price falls, buyers willingly buy less. 
A) Price is positively related to quantity supplied. 
B) There is an inverse relationship between price and quantity demanded. 
C) There is a direct relationship between price and quantity demanded. 
D) When the price falls, buyers willingly buy less.

Question 6

Figure 4-7
  
-Refer to the Figure 4-7.What does the movement from point A to point B on the graph show

Accepted Answer

A) a decrease in demand 
B) an increase in demand 
C) a decrease in quantity demanded 
D) an increase in quantity demanded 
A) a decrease in demand 
B) an increase in demand 
C) a decrease in quantity demanded 
D) an increase in quantity demanded

Question 7

Market demand is given as QD = 80 - 2P.Market supply is given as QS = 2P.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 20 
D) a shortage of 20 
A) a shortage of 40 
B) a surplus of 40 
C) a surplus of 20 
D) a shortage of 20

Question 8

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $40 to $44,what is the price elasticity of demand

Accepted Answer

A) 0.2 
B) 0.7 
C) 1.7 
D) 2.0 
A) 0.2 
B) 0.7 
C) 1.7 
D) 2.0

Question 9

What can be said about economists in general

Accepted Answer

A) They do not try to explain people's tastes, but do try to explain what happens when tastes change. 
B) They must be able to explain people's tastes to explain what happens when tastes change. 
C) They do not believe that people's tastes determine demand and therefore ignore the subject of tastes. 
D) They believe that tastes and demand move in opposite directions. 
A) They do not try to explain people's tastes, but do try to explain what happens when tastes change. 
B) They must be able to explain people's tastes to explain what happens when tastes change. 
C) They do not believe that people's tastes determine demand and therefore ignore the subject of tastes. 
D) They believe that tastes and demand move in opposite directions.

Question 10

Which of the following would cause both the equilibrium price and equilibrium quantity of day-old bread (an inferior good) to increase

Accepted Answer

A) an increase in consumer income 
B) a decrease in consumer income 
C) greater government restrictions on agricultural chemicals 
D) fewer government restrictions on agricultural chemicals 
A) an increase in consumer income 
B) a decrease in consumer income 
C) greater government restrictions on agricultural chemicals 
D) fewer government restrictions on agricultural chemicals

Question 11

What do demand and supply determine in a perfectly competitive market

Accepted Answer

A) income 
B) expectations 
C) price 
D) costs of production 
A) income 
B) expectations 
C) price 
D) costs of production

Question 12

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Accepted Answer

A) True 
 B)False

Question 13

New oak tables are normal goods.What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,more buyers enter the market for oak tables,and the price of wood saws increased

Accepted Answer

A) price will fall and the effect on quantity is ambiguous 
B) price will rise and the effect on quantity is ambiguous 
C) quantity will fall and the effect on price is ambiguous 
D) quantity will rise and the effect on price is ambiguous 
A) price will fall and the effect on quantity is ambiguous 
B) price will rise and the effect on quantity is ambiguous 
C) quantity will fall and the effect on price is ambiguous 
D) quantity will rise and the effect on price is ambiguous

Question 14

Suppose that demand increases and supply decreases.What would we expect to happen in the market

Accepted Answer

A) Equilibrium price would decrease, but the impact on quantity would be ambiguous. 
B) Equilibrium price would increase, but the impact on quantity would be ambiguous. 
C) Both equilibrium price and quantity would increase. 
D) Both equilibrium price and quantity would decrease. 
A) Equilibrium price would decrease, but the impact on quantity would be ambiguous. 
B) Equilibrium price would increase, but the impact on quantity would be ambiguous. 
C) Both equilibrium price and quantity would increase. 
D) Both equilibrium price and quantity would decrease.

Question 15

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

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 16

If the supply of a product increases,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 17

Figure 4-6
  
-Refer to the Figure 4-6.What could cause the shift from D to D₁

Accepted Answer

A) an increase in price 
B) a decrease in the price of a complement 
C) an increase in technology 
D) a decrease in the price of a substitute 
A) an increase in price 
B) a decrease in the price of a complement 
C) an increase in technology 
D) a decrease in the price of a substitute

Question 18

Figure 4-6
  
-Refer to the Figure 4-6.What is the shift from D to D₁ called

Accepted Answer

A) an increase in demand 
B) a decrease in demand 
C) a decrease in quantity demanded 
D) an increase in quantity demanded 
A) an increase in demand 
B) a decrease in demand 
C) a decrease in quantity demanded 
D) an increase in quantity demanded

Question 19

If a company making frozen orange juice expects the price of their product to be higher next month,they will supply more to the market this month.

Accepted Answer

A) True 
 B)False

Question 20

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $21 to $23,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 1.0 
C) 3.7 
D) 9.4 
A) 0.3 
B) 1.0 
C) 3.7 
D) 9.4

Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd =150 - 3P.Market supply is given as QS = 2P.What would result if the market price were $25

Market demand is given as QD = 80 - P.Market supply is given as QS = 3P.What would result if the market price were $10

How is a market supply curve constructed

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

Which of the following reflects the downward-sloping demand curve

Figure 4-7 -Refer to the Figure 4-7.What does the movement from point A to point B on the graph show

Market demand is given as QD = 80 - 2P.Market supply is given as QS = 2P.What would result if the market price were $10

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $40 to $44,what is the price elasticity of demand

What can be said about economists in general

Which of the following would cause both the equilibrium price and equilibrium quantity of day-old bread (an inferior good) to increase

What do demand and supply determine in a perfectly competitive market

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

New oak tables are normal goods.What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,more buyers enter the market for oak tables,and the price of wood saws increased

Suppose that demand increases and supply decreases.What would we expect to happen in the market

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

Figure 4-6 -Refer to the Figure 4-6.What could cause the shift from D to D₁

Figure 4-6 -Refer to the Figure 4-6.What is the shift from D to D₁ called

If a company making frozen orange juice expects the price of their product to be higher next month,they will supply more to the market this month.

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $21 to $23,what is the price elasticity of demand

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 Qd =150 - 3P.Market supply is given as Q_S= 2P.What would result if the market price were $25

Market demand is given as Q_D= 80 - P.Market supply is given as Q_S= 3P.What would result if the market price were $10

Market demand is given as Q_D= 80 - 2P.Market supply is given as Q_S= 2P.What would result if the market price were $10

Market demand is given as Q_D= 100 - P.Market supply is given as Q_S= 4P.If price increases from $40 to $44,what is the price elasticity of demand

Market demand is given as Q_D= 140 - 5P.Market supply is given as Q_S= 2P.If price increases from $21 to $23,what is the price elasticity of demand