Question 1

What is step one in the three-step program for analyzing changes in equilibrium

Accepted Answer

A) Decide in which direction the curve shifts. 
B) Decide whether the event shifts the supply or demand curve. 
C) Use the supply-and-demand diagram to see how the shift changes the original equilibrium. 
D) Analyze how equilibrium price and quantity have changed. 
A) Decide in which direction the curve shifts. 
B) Decide whether the event shifts the supply or demand curve. 
C) Use the supply-and-demand diagram to see how the shift changes the original equilibrium. 
D) Analyze how equilibrium price and quantity have changed.

Question 2

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.What would result if the market price were $15

Accepted Answer

A) a shortage of 50 
B) a surplus of 50 
C) a surplus of 200 
D) a shortage of 200 
A) a shortage of 50 
B) a surplus of 50 
C) a surplus of 200 
D) a shortage of 200

Question 3

Figure 4-3
​
  
-Refer to the Figure 4-3.If the price in this market is currently $14,what would happen

Accepted Answer

A) There would be a shortage of 20 units so producers would increase production. 
B) There would be a surplus of 20 units and the price would tend to fall. 
C) There would be a shortage of 40 units so producers would increase production. 
D) There would be a surplus of 40 units and the price would tend to fall. 
A) There would be a shortage of 20 units so producers would increase production. 
B) There would be a surplus of 20 units and the price would tend to fall. 
C) There would be a shortage of 40 units so producers would increase production. 
D) There would be a surplus of 40 units and the price would tend to fall.

Question 4

What does the market supply curve show

Accepted Answer

A) the total quantity supplied at any price 
B) the average quantity supplied at any price 
C) a ratio between price and quantity supplied for the market 
D) the price sellers will receive from consumers at given quantities 
A) the total quantity supplied at any price 
B) the average quantity supplied at any price 
C) a ratio between price and quantity supplied for the market 
D) the price sellers will receive from consumers at given quantities

Question 5

A dress manufacturer is expecting higher prices for dresses in the near future.What would we expect

Accepted Answer

A) the dress manufacturer to supply more dresses now 
B) the dress manufacturer to supply fewer dresses now 
C) the demand for this manufacturer's dresses to fall 
D) no change in the dress manufacturer's current supply 
A) the dress manufacturer to supply more dresses now 
B) the dress manufacturer to supply fewer dresses now 
C) the demand for this manufacturer's dresses to fall 
D) no change in the dress manufacturer's current supply

Question 6

Market demand is given as QD = 150 - P.Market supply is given as QS = 4P.If price increases from $30 to $40,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 0.7 
C) 1.5 
D) 2.0 
A) 0.3 
B) 0.7 
C) 1.5 
D) 2.0

Question 7

Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity

Accepted Answer

A) an increase in supply and demand 
B) an increase in supply and a decrease in demand 
C) a decrease in supply and an increase in demand 
D) a decrease in supply and demand 
A) an increase in supply and demand 
B) an increase in supply and a decrease in demand 
C) a decrease in supply and an increase in demand 
D) a decrease in supply and demand

Question 8

What would happen if both supply and demand increase

Accepted Answer

A) Equilibrium price would definitely increase. 
B) Equilibrium price would definitely decrease. 
C) Equilibrium quantity would definitely decrease. 
D) Equilibrium quantity would definitely increase. 
A) Equilibrium price would definitely increase. 
B) Equilibrium price would definitely decrease. 
C) Equilibrium quantity would definitely decrease. 
D) Equilibrium quantity would definitely increase.

Question 9

How do demand and supply for banana cream pie change if the price of bananas increased

Accepted Answer

A) Demand decreases, and supply increases. 
B) Demand does not change, and supply decreases. 
C) Demand increases, and supply does not change. 
D) Both demand and supply increase. 
A) Demand decreases, and supply increases. 
B) Demand does not change, and supply decreases. 
C) Demand increases, and supply does not change. 
D) Both demand and supply increase.

Question 10

Market demand is given as QD = 300 - 0.5P.Market supply is given as QS = 50 + 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market

Accepted Answer

A) price will be $200 and quantity will be 150 
B) price will be $35 and quantity will be 70 
C) price will be $100 and quantity will be 250 
D) price will be $150 and quantity will be 300 
A) price will be $200 and quantity will be 150 
B) price will be $35 and quantity will be 70 
C) price will be $100 and quantity will be 250 
D) price will be $150 and quantity will be 300

Question 11

Figure 4-4
  
-Refer to the Figure 4-4.If the price is $10,what would happen

Accepted Answer

A) There would be a shortage of 200 and the price would rise. 
B) There would be a surplus of 200 and the price would fall. 
C) There would be a shortage of 600 and the price would rise. 
D) There would be a surplus of 600 and the price would fall. 
A) There would be a shortage of 200 and the price would rise. 
B) There would be a surplus of 200 and the price would fall. 
C) There would be a shortage of 600 and the price would rise. 
D) There would be a surplus of 600 and the price would fall.

Question 12

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $50 to $55,what is the price elasticity of demand

Accepted Answer

A) 0 
B) 0.1 
C) 1.0 
D) 2.2 
A) 0 
B) 0.1 
C) 1.0 
D) 2.2

Question 13

Figure 4-1
  
-Refer to the Figure 4-1.What is the movement from S₁ to S called

Accepted Answer

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

Question 14

Market demand is given as QD = 300 - 6P.Market supply is given as QS = 4P.If price increases from $35 to $38,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 0.4 
C) 1.7 
D) 2.7 
A) 0.3 
B) 0.4 
C) 1.7 
D) 2.7

Question 15

Figure 4-5
  
-Refer to the Figure 4-5.Which of the following is shown in Graph C

Accepted Answer

A) a decrease in demand 
B) a decrease in the number of sellers 
C) an increase in supply 
D) an increase in input prices 
A) a decrease in demand 
B) a decrease in the number of sellers 
C) an increase in supply 
D) an increase in input prices

Question 16

If goods A and B are complements,what will result from an increase in the price of A

Accepted Answer

A) more A and more B is sold 
B) more A and less B is sold 
C) less A and more B is sold 
D) less A and less B is sold 
A) more A and more B is sold 
B) more A and less B is sold 
C) less A and more B is sold 
D) less A and less B is sold

Question 17

Which of the following would be an example of a monopoly

Accepted Answer

A) a bakery in a large city 
B) local cement companies 
C) a local electricity company 
D) a potato farmer 
A) a bakery in a large city 
B) local cement companies 
C) a local electricity company 
D) a potato farmer

Question 18

Which of the following might be the reason when quantity demanded has decreased at every price

Accepted Answer

A) The number of buyers in the market has increased. 
B) Income has increased and this good is a normal good. 
C) The price of a complement good has increased. 
D) The price of a substitute good has increased. 
A) The number of buyers in the market has increased. 
B) Income has increased and this good is a normal good. 
C) The price of a complement good has increased. 
D) The price of a substitute good has increased.

Question 19

What would an early frost in the vineyards of the Okanagan Valley cause

Accepted Answer

A) an increase in the demand for wine, increasing price 
B) an increase in the supply of wine, decreasing price 
C) a decrease in the demand for wine, decreasing price 
D) a decrease in the supply of wine, increasing price 
A) an increase in the demand for wine, increasing price 
B) an increase in the supply of wine, decreasing price 
C) a decrease in the demand for wine, decreasing price 
D) a decrease in the supply of wine, increasing price

Question 20

Market demand is given as QD = 300 - 2P.Market supply is given as QS = 2P + 100.What would result if the market price were $15

Accepted Answer

A) a shortage of 25 
B) a surplus of 25 
C) a surplus of 140 
D) a shortage of 140 
A) a shortage of 25 
B) a surplus of 25 
C) a surplus of 140 
D) a shortage of 140

Exam 4: The Market Forces of Supply and Demand

What is step one in the three-step program for analyzing changes in equilibrium

Market demand is given as QD = 200 - 6P.Market supply is given as QS = 4P.What would result if the market price were $15

Figure 4-3 ​ -Refer to the Figure 4-3.If the price in this market is currently $14,what would happen

What does the market supply curve show

A dress manufacturer is expecting higher prices for dresses in the near future.What would we expect

Market demand is given as QD = 150 - P.Market supply is given as QS = 4P.If price increases from $30 to $40,what is the price elasticity of demand

Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity

What would happen if both supply and demand increase

How do demand and supply for banana cream pie change if the price of bananas increased

Market demand is given as QD = 300 - 0.5P.Market supply is given as QS = 50 + 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market

Figure 4-4 -Refer to the Figure 4-4.If the price is $10,what would happen

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $50 to $55,what is the price elasticity of demand

Figure 4-1 -Refer to the Figure 4-1.What is the movement from S₁ to S called

Market demand is given as QD = 300 - 6P.Market supply is given as QS = 4P.If price increases from $35 to $38,what is the price elasticity of demand

Figure 4-5 -Refer to the Figure 4-5.Which of the following is shown in Graph C

If goods A and B are complements,what will result from an increase in the price of A

Which of the following would be an example of a monopoly

Which of the following might be the reason when quantity demanded has decreased at every price

What would an early frost in the vineyards of the Okanagan Valley cause

Market demand is given as QD = 300 - 2P.Market supply is given as QS = 2P + 100.What would result if the market price were $15

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 $15

Figure 4-3 -Refer to the Figure 4-3.If the price in this market is currently $14,what would happen

Market demand is given as Q_D= 150 - P.Market supply is given as Q_S= 4P.If price increases from $30 to $40,what is the price elasticity of demand

Market demand is given as Q_D= 300 - 0.5P.Market supply is given as Q_S= 50 + 2P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market

Market demand is given as Q_D= 250 - 0.5P.Market supply is given as Q_S= 2P.If price increases from $50 to $55,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 $35 to $38,what is the price elasticity of demand

Market demand is given as Q_D= 300 - 2P.Market supply is given as Q_S= 2P + 100.What would result if the market price were $15