Question 1

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 2

Market demand is given as Qd = 300 - 6P. Market supply is given as Qs = 4P. What would result if the market price were $25?

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

Market demand is given as Qd = 250 - .5P. Market supply is given as Qs = 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 200 
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 200 
D) price will be $150 and quantity will be 300

Question 4

Market demand is given as Qd = 60 - P. Market supply is given as Qs = 3P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Accepted Answer

A) price will be $20 and quantity will be 40 
B) price will be $45 and quantity will be 15 
C) price will be $40 and quantity will be 20 
D) price will be $15 and quantity will be 45 
A) price will be $20 and quantity will be 40 
B) price will be $45 and quantity will be 15 
C) price will be $40 and quantity will be 20 
D) price will be $15 and quantity will be 45

Question 5

Table 4-3
  
-Refer to Table 4-3. What is the space that would represent a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

A) space A 
B) space B 
C) space C 
D) space D 
A) space A 
B) space B 
C) space C 
D) space D

Question 6

Market demand is given as Qd = 220 - 4P. 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 81400 
A) a shortage of 120 
B) a surplus of 120 
C) a surplus of 140 
D) a shortage of 81400

Question 7

Currently you purchase 6 packages of hot dogs a month. You graduate in December and will start your new job on January 2. You have no plans to purchase hot dogs in January. What are hot dogs for you?

Accepted Answer

A) a "college-only" good 
B) a normal good 
C) an inferior good 
D) a consumer good 
A) a "college-only" good 
B) a normal good 
C) an inferior good 
D) a consumer good

Question 8

What is the market demand?

Accepted Answer

A) the sum of all individual demands 
B) the demand for every product in an industry 
C) the average quantity demanded at each price 
D) difficult to determine and is generally an estimation for most markets 
A) the sum of all individual demands 
B) the demand for every product in an industry 
C) the average quantity demanded at each price 
D) difficult to determine and is generally an estimation for most markets

Question 9

Figure 4-2  
-Refer to Figure 4-2. What are the equilibrium price and quantity?

Accepted Answer

A) $35 and 200 
B) $35 and 600 
C) $25 and 400 
D) $15 and 200 
A) $35 and 200 
B) $35 and 600 
C) $25 and 400 
D) $15 and 200

Question 10

For a competitive market, which of the following is true?

Accepted Answer

A) A seller who charges more than the going price can increase her profit. 
B) If a seller charges more than the going price, buyers will go elsewhere. 
C) A seller often charges less than the going price to increase sales and profit. 
D) A buyer can influence the price of the product, but only when purchasing from several sellers. 
A) A seller who charges more than the going price can increase her profit. 
B) If a seller charges more than the going price, buyers will go elsewhere. 
C) A seller often charges less than the going price to increase sales and profit. 
D) A buyer can influence the price of the product, but only when purchasing from several sellers.

Question 11

What is the law of demand?

Accepted Answer

A) When the price of a good falls, buyers respond by purchasing more. 
B) When income levels increase, buyers respond by purchasing more. 
C) When buyers' tastes for the good increase, they purchase more of the good. 
D) When the price of a good or service rises, buyers respond by purchasing more. 
A) When the price of a good falls, buyers respond by purchasing more. 
B) When income levels increase, buyers respond by purchasing more. 
C) When buyers' tastes for the good increase, they purchase more of the good. 
D) When the price of a good or service rises, buyers respond by purchasing more.

Question 12

What happens in a competitive market?

Accepted Answer

A) There is only one seller of the product. 
B) Each seller of the product is free to set the price of his product. 
C) Each seller attempts to compete with other sellers, causing fewer sellers in the market. 
D) There are so many buyers and sellers that each has a negligible impact on price. 
A) There is only one seller of the product. 
B) Each seller of the product is free to set the price of his product. 
C) Each seller attempts to compete with other sellers, causing fewer sellers in the market. 
D) There are so many buyers and sellers that each has a negligible impact on price.

Question 13

If the number of buyers in the market decreases, what will happen?

Accepted Answer

A) Demand in the market will increase. 
B) Demand in the market will decrease. 
C) Supply in the market will increase. 
D) Supply in the market will decrease. 
A) Demand in the market will increase. 
B) Demand in the market will decrease. 
C) Supply in the market will increase. 
D) Supply in the market will decrease.

Question 14

Figure 4-2  
-Refer to Figure 4-2. What happens at a price of $15?

Accepted Answer

A) 	There would be a shortage of 400 units. 
B) 	There would be a surplus of 400 units. 
C) 	There would be a shortage of 200 units 
D) 	There would be a shortage of 400 units 
A) 	There would be a shortage of 400 units. 
B) 	There would be a surplus of 400 units. 
C) 	There would be a shortage of 200 units 
D) 	There would be a shortage of 400 units

Question 15

Which of the following will definitely cause equilibrium quantity to fall?

Accepted Answer

A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase 
A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase

Question 16

For a seller, which of the following is NOT positively related?

Accepted Answer

A) the price of the good and the seller's profit 
B) the price of the good and quantity supplied 
C) the seller's profit and product cost 
D) the seller's profit and quantity supplied 
A) the price of the good and the seller's profit 
B) the price of the good and quantity supplied 
C) the seller's profit and product cost 
D) the seller's profit and quantity supplied

Question 17

Figure 4-4  
-Refer to Figure 4-4. At a price of $20, which would NOT be true?

Accepted Answer

A) The market would be in equilibrium. 
B) Equilibrium price would be equal to equilibrium quantity. 
C) There would be no pressure for price to change. 
D) 600 units would be bought and sold. 
A) The market would be in equilibrium. 
B) Equilibrium price would be equal to equilibrium quantity. 
C) There would be no pressure for price to change. 
D) 600 units would be bought and sold.

Question 18

Nancy likes pasta today more than she did yesterday. What do we know?

Accepted Answer

A) Nancy must now consider pasta a luxury. 
B) Nancy must have received an increase in income. 
C) Nancy is now willing to pay more than before for pasta. 
D) The supply of pasta must have increased. 
A) Nancy must now consider pasta a luxury. 
B) Nancy must have received an increase in income. 
C) Nancy is now willing to pay more than before for pasta. 
D) The supply of pasta must have increased.

Question 19

Suppose roses are currently selling for $40.00 per dozen. The equilibrium price of roses is $50.00 per dozen. What would we expect?

Accepted Answer

A) a shortage to exist and the market price of roses to increase 
B) a shortage to exist and the market price of roses to decrease 
C) a surplus to exist and the market price of roses to increase 
D) a surplus to exist and the market price of roses to decrease 
A) a shortage to exist and the market price of roses to increase 
B) a shortage to exist and the market price of roses to decrease 
C) a surplus to exist and the market price of roses to increase 
D) a surplus to exist and the market price of roses to decrease

Question 20

The behaviour of buyers and sellers drives markets toward equilibrium.

Accepted Answer

A) True 
 B)False

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

Market demand is given as Qd = 300 - 6P. Market supply is given as Qs = 4P. What would result if the market price were $25?

Market demand is given as Qd = 250 - .5P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Market demand is given as Qd = 60 - P. Market supply is given as Qs = 3P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Table 4-3 -Refer to Table 4-3. What is the space that would represent a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Market demand is given as Qd = 220 - 4P. Market supply is given as Qs = 2P + 40. What would result if the market price were $50?

Currently you purchase 6 packages of hot dogs a month. You graduate in December and will start your new job on January 2. You have no plans to purchase hot dogs in January. What are hot dogs for you?

What is the market demand?

Figure 4-2 -Refer to Figure 4-2. What are the equilibrium price and quantity?

For a competitive market, which of the following is true?

What is the law of demand?

What happens in a competitive market?

If the number of buyers in the market decreases, what will happen?

Figure 4-2 -Refer to Figure 4-2. What happens at a price of $15?

Which of the following will definitely cause equilibrium quantity to fall?

For a seller, which of the following is NOT positively related?

Figure 4-4 -Refer to Figure 4-4. At a price of $20, which would NOT be true?

Nancy likes pasta today more than she did yesterday. What do we know?

Suppose roses are currently selling for $40.00 per dozen. The equilibrium price of roses is $50.00 per dozen. What would we expect?

The behaviour of buyers and sellers drives markets toward equilibrium.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

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

Market demand is given as Qd = 300 - 6P. Market supply is given as Qs = 4P. What would result if the market price were $25?

Market demand is given as Qd = 250 - .5P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Market demand is given as Qd = 60 - P. Market supply is given as Qs = 3P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Table 4-3 -Refer to Table 4-3. What is the space that would represent a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Market demand is given as Qd = 220 - 4P. Market supply is given as Qs = 2P + 40. What would result if the market price were $50?

Currently you purchase 6 packages of hot dogs a month. You graduate in December and will start your new job on January 2. You have no plans to purchase hot dogs in January. What are hot dogs for you?

What is the market demand?

Figure 4-2 -Refer to Figure 4-2. What are the equilibrium price and quantity?

For a competitive market, which of the following is true?

What is the law of demand?

What happens in a competitive market?

If the number of buyers in the market decreases, what will happen?

Figure 4-2 -Refer to Figure 4-2. What happens at a price of $15?

Which of the following will definitely cause equilibrium quantity to fall?

For a seller, which of the following is NOT positively related?

Figure 4-4 -Refer to Figure 4-4. At a price of $20, which would NOT be true?

Nancy likes pasta today more than she did yesterday. What do we know?

Suppose roses are currently selling for $40.00 per dozen. The equilibrium price of roses is $50.00 per dozen. What would we expect?

The behaviour of buyers and sellers drives markets toward equilibrium.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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