Question 1

Which of the following would unambiguously cause a decrease in the equilibrium price of cotton shirts

Accepted Answer

A) an increase in the price of wool shirts and a decrease in the price of raw cotton 
B) a decrease in the price of wool shirts and a decrease in the price of raw cotton 
C) an increase in the price of wool shirts and an increase in the price of raw cotton 
D) a decrease in the price of wool shirts and an increase in the price of raw cotton 
A) an increase in the price of wool shirts and a decrease in the price of raw cotton 
B) a decrease in the price of wool shirts and a decrease in the price of raw cotton 
C) an increase in the price of wool shirts and an increase in the price of raw cotton 
D) a decrease in the price of wool shirts and an increase in the price of raw cotton

Question 2

What is the amount of the good buyers are willing and able to purchase

Accepted Answer

A) demand 
B) quantity supplied 
C) quantity demanded 
D) supply 
A) demand 
B) quantity supplied 
C) quantity demanded 
D) supply

Question 3

What will happen to the demand curve for ice cream in a very hot summer in Guelph

Accepted Answer

A) It will shift to the left. 
B) It will shift to the right. 
C) It will remain stable but we would move down the curve. 
D) It will remain stable but we would move up the curve. 
A) It will shift to the left. 
B) It will shift to the right. 
C) It will remain stable but we would move down the curve. 
D) It will remain stable but we would move up the curve.

Question 4

Market demand is given as QD = 70 - 2P.Market supply is given as QS = P + 10.What would result if the market price were $30

Accepted Answer

A) a shortage of 30 
B) a surplus of 40 
C) a surplus of 30 
D) a shortage of 40 
A) a shortage of 30 
B) a surplus of 40 
C) a surplus of 30 
D) a shortage of 40

Question 5

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

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 6

What is an example of complementary goods

Accepted Answer

A) hamburgers and hot dogs 
B) lawnmowers and automobiles 
C) cereal and milk 
D) wine and beer 
A) hamburgers and hot dogs 
B) lawnmowers and automobiles 
C) cereal and milk 
D) wine and beer

Question 7

Figure 4-6
  
-Refer to the Figure 4-6.What happens if the demand curve shifts from D₁ to D

Accepted Answer

A) Firms would be willing to supply less than before. 
B) People are less willing to buy the product at any price than before. 
C) People are now more willing to buy the product at any price than before. 
D) The price of the product has decreased, causing consumers to buy more of the product. 
A) Firms would be willing to supply less than before. 
B) People are less willing to buy the product at any price than before. 
C) People are now more willing to buy the product at any price than before. 
D) The price of the product has decreased, causing consumers to buy more of the product.

Question 8

Table 4-1
  
-Refer to the Table 4-1.What would the equilibrium price and quantity be

Accepted Answer

A) $6 and 30 
B) $9 and 60 
C) $12 and 40 
D) $15 and 20 
A) $6 and 30 
B) $9 and 60 
C) $12 and 40 
D) $15 and 20

Question 9

Market demand is given as QD = 220 - 4P.Market supply is given as QS = 2P + 40.If price increases from $12 to $14,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 0.7 
C) 1.0 
D) 3.0 
A) 0.3 
B) 0.7 
C) 1.0 
D) 3.0

Question 10

Which of the following would NOT affect an individual's demand curve

Accepted Answer

A) expectations 
B) income 
C) price of related goods 
D) the number of buyers 
A) expectations 
B) income 
C) price of related goods 
D) the number of buyers

Question 11

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

Which of the following would unambiguously cause a decrease in the equilibrium price of cotton shirts

What is the amount of the good buyers are willing and able to purchase

What will happen to the demand curve for ice cream in a very hot summer in Guelph

Market demand is given as Q_D= 70 - 2P.Market supply is given as Q_S= P + 10.What would result if the market price were $30

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

What is an example of complementary goods

Figure 4-6 -Refer to the Figure 4-6.What happens if the demand curve shifts from D₁ to D

Table 4-1 -Refer to the Table 4-1.What would the equilibrium price and quantity be

Market demand is given as Q_D= 220 - 4P.Market supply is given as Q_S= 2P + 40.If price increases from $12 to $14,what is the price elasticity of demand

Which of the following would NOT affect an individual's demand curve

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

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

Exam 4: The Market Forces of Supply and Demand

Which of the following would unambiguously cause a decrease in the equilibrium price of cotton shirts

What is the amount of the good buyers are willing and able to purchase

What will happen to the demand curve for ice cream in a very hot summer in Guelph

Market demand is given as QD = 70 - 2P.Market supply is given as QS = P + 10.What would result if the market price were $30

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

What is an example of complementary goods

Figure 4-6 -Refer to the Figure 4-6.What happens if the demand curve shifts from D₁ to D

Table 4-1 -Refer to the Table 4-1.What would the equilibrium price and quantity be

Market demand is given as QD = 220 - 4P.Market supply is given as QS = 2P + 40.If price increases from $12 to $14,what is the price elasticity of demand

Which of the following would NOT affect an individual's demand curve

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

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= 70 - 2P.Market supply is given as Q_S= P + 10.What would result if the market price were $30

Market demand is given as Q_D= 220 - 4P.Market supply is given as Q_S= 2P + 40.If price increases from $12 to $14,what is the price elasticity of demand