Question 1

If,at the current price,there is a surplus of a good,then

Accepted Answer

A)  the quantity supplied is greater than the quantity demanded. 
B)  the market must be in equilibrium. 
C)  the price is below the equilibrium price. 
D)  quantity demanded equals quantity supplied. 
A)  the quantity supplied is greater than the quantity demanded. 
B)  the market must be in equilibrium. 
C)  the price is below the equilibrium price. 
D)  quantity demanded equals quantity supplied.

Question 2

A decrease in the price of a good would

Accepted Answer

A)  increase the supply of the good. 
B)  increase the quantity demanded of the good. 
C)  give producers an incentive to produce more to keep profits from falling. 
D)  shift the supply curve for the good to the left. 
A)  increase the supply of the good. 
B)  increase the quantity demanded of the good. 
C)  give producers an incentive to produce more to keep profits from falling. 
D)  shift the supply curve for the good to the left.

Question 3

The face value of a ticket to the Super Bowl was approximately $1,200 in 2011.The game is very popular and there are a number of fans who are not able to get tickets to this game.At the same time,many fans claim that prices are too high and that the NFL should lower the face value of the ticket prices.Would a decrease in ticket prices move the market towards equilibrium? Would it eliminate the shortage of tickets? Why or why not?

Accepted Answer

Lowering the ticket prices would not mov

Question 4

According to the law of supply:

Accepted Answer

A)  there is an inverse relationship between price and quantity demanded. 
B)  there is a direct relationship between price and quantity demanded. 
C)  there is an inverse relationship between price and the quantity supplied. 
D)  there is a direct relationship between price and the quantity supplied. 
A)  there is an inverse relationship between price and quantity demanded. 
B)  there is a direct relationship between price and quantity demanded. 
C)  there is an inverse relationship between price and the quantity supplied. 
D)  there is a direct relationship between price and the quantity supplied.

Question 5

Exhibit 4-9 The diagram below represents the market for butter.   Refer to Exhibit 4-9.At a market price of $4,there exists a:

Accepted Answer

A)  shortage equal to 4,000 pounds of butter. 
B)  surplus equal to 4,000 pounds of butter. 
C)  shortage equal to 7,000 pounds of butter. 
D)  surplus equal to 7,000 pounds of butter. 
A)  shortage equal to 4,000 pounds of butter. 
B)  surplus equal to 4,000 pounds of butter. 
C)  shortage equal to 7,000 pounds of butter. 
D)  surplus equal to 7,000 pounds of butter.

Question 6

As a result of an increase in a product's price:

Accepted Answer

A)  product supply increases. 
B)  product supply decreases. 
C)  product supply does not change, but quantity supplied increases. 
D)  the impact on product supply is uncertain. Economic theory has no answer to this question. 
A)  product supply increases. 
B)  product supply decreases. 
C)  product supply does not change, but quantity supplied increases. 
D)  the impact on product supply is uncertain. Economic theory has no answer to this question.

Question 7

If the demand for milk is downward sloping,then an increase in the price of milk will result in a(n):

Accepted Answer

A)  increase in the demand for milk. 
B)  decrease in the demand for milk. 
C)  increase in the quantity of milk demanded. 
D)  decrease in the quantity of milk demanded. 
A)  increase in the demand for milk. 
B)  decrease in the demand for milk. 
C)  increase in the quantity of milk demanded. 
D)  decrease in the quantity of milk demanded.

Question 8

Buyers who were originally willing to buy 800 units of a good at $4 per unit are now willing to buy 1200 units at $4 per unit.That change would be described as:

Accepted Answer

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

Question 9

Which of the following would be most likely to cause a reduction in the supply of Nintendo video games?

Accepted Answer

A)  a decrease in the price of Nintendo video games 
B)  a decrease in the price of computer chips used to make Nintendo games 
C)  an increase in the demand for Nintendo video games 
D)  an increase in the price of computer chips used to make Nintendo games 
A)  a decrease in the price of Nintendo video games 
B)  a decrease in the price of computer chips used to make Nintendo games 
C)  an increase in the demand for Nintendo video games 
D)  an increase in the price of computer chips used to make Nintendo games

Question 10

If the market for wheat is in equilibrium,the quantity of wheat demanded will equal the quantity of wheat supplied.

Accepted Answer

A) True 
 B)False

Question 11

A change in which of the following variables does not cause a change in demand?

Accepted Answer

A)  prices of unrelated goods 
B)  incomes of demanders 
C)  the number of demanders 
D)  tastes of demanders 
A)  prices of unrelated goods 
B)  incomes of demanders 
C)  the number of demanders 
D)  tastes of demanders

Question 12

Exhibit 4-5   Refer to Exhibit 4-5.A change from Point A to Point D represents a(n):

Accepted Answer

A)  increase in supply. 
B)  decrease in supply. 
C)  increase in quantity supplied. 
D)  decrease in quantity supplied. 
A)  increase in supply. 
B)  decrease in supply. 
C)  increase in quantity supplied. 
D)  decrease in quantity supplied.

Question 13

Dean bakes his famous apple pies and sells them at the local farmer's market.If the price of apples increases,the

Accepted Answer

A)  supply curve for Dean's pies will increase. 
B)  supply curve for Dean's pies will decrease. 
C)  demand curve for Dean's pies will increase. 
D)  demand curve for Dean's pies will decrease. 
A)  supply curve for Dean's pies will increase. 
B)  supply curve for Dean's pies will decrease. 
C)  demand curve for Dean's pies will increase. 
D)  demand curve for Dean's pies will decrease.

Question 14

A supply curve illustrates a(n)____ relationship between ____ and ____.

Accepted Answer

A)  direct; price; supply 
B)  direct; price; quantity demanded 
C)  direct; price; quantity supplied 
D)  inverse; price; quantity demanded 
A)  direct; price; supply 
B)  direct; price; quantity demanded 
C)  direct; price; quantity supplied 
D)  inverse; price; quantity demanded

Question 15

Which of the following would cause the quantity of wheat bread demanded to increase,but not the demand for wheat?

Accepted Answer

A)  a reduction in the price of rye, used to produce rye bread 
B)  a new scientific study demonstrating that wheat bread reduces the risk of colon cancer 
C)  a decrease in the price of rye bread 
D)  an increase in the number of farmers growing wheat 
A)  a reduction in the price of rye, used to produce rye bread 
B)  a new scientific study demonstrating that wheat bread reduces the risk of colon cancer 
C)  a decrease in the price of rye bread 
D)  an increase in the number of farmers growing wheat

Question 16

Define what a market is and provide three examples of where a market can be found.

Accepted Answer

A market is the process of buyers and se

Question 17

Suppose Sprite and 7-Up are considered by consumers to be substitutes.The likely economic impact of a decrease in the price of 7-Up is a:

Accepted Answer

A)  movement up along the demand curve for Sprite. 
B)  decrease in the supply of 7-Up. 
C)  rightward shift of the demand curve for Sprite. 
D)  leftward shift of the demand curve for Sprite. 
A)  movement up along the demand curve for Sprite. 
B)  decrease in the supply of 7-Up. 
C)  rightward shift of the demand curve for Sprite. 
D)  leftward shift of the demand curve for Sprite.

Question 18

At the equilibrium price for gasoline:

Accepted Answer

A)  everyone with the desire and the income to buy gasoline at that price can do so. 
B)  surpluses are inevitable. 
C)  quantity demanded exceeds the quantity supplied. 
D)  none of the above 
A)  everyone with the desire and the income to buy gasoline at that price can do so. 
B)  surpluses are inevitable. 
C)  quantity demanded exceeds the quantity supplied. 
D)  none of the above

Question 19

Which of the following will not increase the demand for iced tea?

Accepted Answer

A)  an increase in advertising that makes drinking iced tea more appealing 
B)  an increase in the price of iced coffee, a substitute product 
C)  an increase in the income of consumers (assume that iced tea is a normal good) 
D)  a decrease in the price of iced tea 
A)  an increase in advertising that makes drinking iced tea more appealing 
B)  an increase in the price of iced coffee, a substitute product 
C)  an increase in the income of consumers (assume that iced tea is a normal good) 
D)  a decrease in the price of iced tea

Question 20

An increase in the price of a good will

Accepted Answer

A)  increase demand. 
B)  decrease demand. 
C)  increase quantity demanded. 
D)  decrease quantity demanded. 
A)  increase demand. 
B)  decrease demand. 
C)  increase quantity demanded. 
D)  decrease quantity demanded.

Exam 4: Demand, Supply, and Market Equilibrium

If,at the current price,there is a surplus of a good,then

A decrease in the price of a good would

According to the law of supply:

Exhibit 4-9 The diagram below represents the market for butter. Refer to Exhibit 4-9.At a market price of $4,there exists a:

As a result of an increase in a product's price:

If the demand for milk is downward sloping,then an increase in the price of milk will result in a(n):

Buyers who were originally willing to buy 800 units of a good at $4 per unit are now willing to buy 1200 units at $4 per unit.That change would be described as:

Which of the following would be most likely to cause a reduction in the supply of Nintendo video games?

If the market for wheat is in equilibrium,the quantity of wheat demanded will equal the quantity of wheat supplied.

A change in which of the following variables does not cause a change in demand?

Exhibit 4-5 Refer to Exhibit 4-5.A change from Point A to Point D represents a(n):

Dean bakes his famous apple pies and sells them at the local farmer's market.If the price of apples increases,the

A supply curve illustrates a(n)____ relationship between ____ and ____.

Which of the following would cause the quantity of wheat bread demanded to increase,but not the demand for wheat?

Define what a market is and provide three examples of where a market can be found.

Suppose Sprite and 7-Up are considered by consumers to be substitutes.The likely economic impact of a decrease in the price of 7-Up is a:

At the equilibrium price for gasoline:

Which of the following will not increase the demand for iced tea?

An increase in the price of a good will

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

Filters

A supply curve illustrates a(n) relationship between and .