Question 1

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A)  There is a shortage of oranges. 
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D)  All of the above are correct. 
A)  There is a shortage of oranges. 
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D)  All of the above are correct.

Question 2

Today, people changed their expectations about the future. This change

Accepted Answer

A)  can cause a movement along a demand curve. 
B)  can affect future demand but not today's demand. 
C)  can affect today's demand. 
D)  cannot affect either today's demand or future demand. 
A)  can cause a movement along a demand curve. 
B)  can affect future demand but not today's demand. 
C)  can affect today's demand. 
D)  cannot affect either today's demand or future demand.

Question 3

Figure 4-21  
-Refer to Figure 4-21. What is the equilibrium quantity in this market?

Accepted Answer

A)  2.5 units 
B)  5 units 
C)  7.5 units 
D)  10 units 
A)  2.5 units 
B)  5 units 
C)  7.5 units 
D)  10 units

Question 4

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
  
-Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 5

Table 4-16
The following table shows the supply and demand schedules in a market.
  
-Refer to Table 4-16. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 6

Figure 4-30  
-Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Accepted Answer

Equilibrium price is

Question 7

Which of the following demonstrates the law of demand?

Accepted Answer

A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. 
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. 
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. 
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way. 
A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. 
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. 
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. 
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

Question 8

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

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 9

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls.

Accepted Answer

A) True 
 B)False

Question 10

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Accepted Answer

A) True 
 B)False

Question 11

Each of the following is a determinant of demand except

Accepted Answer

A)  tastes. 
B)  production technology. 
C)  expectations. 
D)  the prices of related goods. 
A)  tastes. 
B)  production technology. 
C)  expectations. 
D)  the prices of related goods.

Question 12

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

Accepted Answer

A)  an increase in demand for brown rice and a decrease in demand for white rice. 
B)  a decrease in demand for brown rice and an increase in demand for white rice. 
C)  an increase in demand for both brown and white rice. 
D)  no change in demand for either type of rice because weight loss is not a determinant of demand. 
A)  an increase in demand for brown rice and a decrease in demand for white rice. 
B)  a decrease in demand for brown rice and an increase in demand for white rice. 
C)  an increase in demand for both brown and white rice. 
D)  no change in demand for either type of rice because weight loss is not a determinant of demand.

Question 13

If a decrease in income increases the demand for a good, then the good is a(n)

Accepted Answer

A)  substitute good. 
B)  complementary good. 
C)  normal good. 
D)  inferior good. 
A)  substitute good. 
B)  complementary good. 
C)  normal good. 
D)  inferior good.

Question 14

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
  
-Refer to Table 4-15. Assume these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price. If the price is $6 per case, is there a shortage or surplus, and how large is the shortage or surplus?

Accepted Answer

There is a

Question 15

Which of the following is an example of a less-than-highly-organized market?

Accepted Answer

A)  the market for U.S. Treasury bonds 
B)  the market for corn 
C)  the market for soybeans 
D)  the market for ice cream 
A)  the market for U.S. Treasury bonds 
B)  the market for corn 
C)  the market for soybeans 
D)  the market for ice cream

Question 16

Which of the following would increase in response to a increase in the price of ironing boards?

Accepted Answer

A)  the quantity of irons demanded at each possible price of irons 
B)  the equilibrium quantity of irons 
C)  the equilibrium price of irons 
D)  None of the above is correct. 
A)  the quantity of irons demanded at each possible price of irons 
B)  the equilibrium quantity of irons 
C)  the equilibrium price of irons 
D)  None of the above is correct.

Question 17

Figure 4-28  
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

Accepted Answer

The answer of Figure 4-28  
-Refer to Figure 4-28....

Question 18

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 19

An example of a perfectly competitive market would be the

Accepted Answer

A)  cable TV market. 
B)  soybean market. 
C)  breakfast cereal market. 
D)  shampoo market. 
A)  cable TV market. 
B)  soybean market. 
C)  breakfast cereal market. 
D)  shampoo market.

Question 20

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
         , where   is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. What is the equilibrium quantity in this market?

Accepted Answer

The answer of Scenario 4-1
Suppose the demand schedule in a...

Which of the following events would cause the price of oranges to fall?

Today, people changed their expectations about the future. This change

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium quantity in this market?

Figure 4-30 -Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Which of the following demonstrates the law of demand?

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls.

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Each of the following is a determinant of demand except

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

If a decrease in income increases the demand for a good, then the good is a(n)

Which of the following is an example of a less-than-highly-organized market?

Which of the following would increase in response to a increase in the price of ironing boards?

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

An example of a perfectly competitive market would be the

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 events would cause the price of oranges to fall?

Today, people changed their expectations about the future. This change

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium quantity in this market?

Figure 4-30 -Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Which of the following demonstrates the law of demand?

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good rises, and when the price falls, the quantity demanded falls.

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Each of the following is a determinant of demand except

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

If a decrease in income increases the demand for a good, then the good is a(n)

Which of the following is an example of a less-than-highly-organized market?

Which of the following would increase in response to a increase in the price of ironing boards?

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

An example of a perfectly competitive market would be the

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