Question 1

A market is a group of buyers and sellers of a particular product.

Accepted Answer

A) True 
 B)False

Question 2

Market demand is given as QD = 75 - P.Market supply is given as QS = 3P + 15.If price increases from $48 to $54,what is the price elasticity of demand?

Accepted Answer

A)  0.1 
B)  0.7 
C)  2.1 
D)  2.7 
A)  0.1 
B)  0.7 
C)  2.1 
D)  2.7

Question 3

Which of the following is NOT a determinant of demand?

Accepted Answer

A)  tastes 
B)  technology 
C)  income 
D)  the price of related goods 
A)  tastes 
B)  technology 
C)  income 
D)  the price of related goods

Question 4

What happens at the equilibrium price?

Accepted Answer

A)  Buyers have an incentive to buy more. 
B)  It is possible for there to be a shortage. 
C)  Firms have an incentive to increase production. 
D)  Everyone in the market has been satisfied. 
A)  Buyers have an incentive to buy more. 
B)  It is possible for there to be a shortage. 
C)  Firms have an incentive to increase production. 
D)  Everyone in the market has been satisfied.

Question 5

If buyers and / or sellers are price takers,what can they do individually?

Accepted Answer

A)  They have no influence on market price. 
B)  They have ultimate control over market price. 
C)  Buyers will be able to find prices lower than those determined in the market. 
D)  They can somewhat influence the market price. 
A)  They have no influence on market price. 
B)  They have ultimate control over market price. 
C)  Buyers will be able to find prices lower than those determined in the market. 
D)  They can somewhat influence the market price.

Question 6

Figure 4-4  
-Refer to the Figure 4-4.If the price is $25,what would the quantity demanded be?

Accepted Answer

A)  400 
B)  500 
C)  600 
D)  800 
A)  400 
B)  500 
C)  600 
D)  800

Question 7

Baseballs and baseball bats are substitute goods.

Accepted Answer

A) True 
 B)False

Question 8

Quantity demanded is equal to quantity supplied,at the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 9

Suppose you wish to analyze the change in the equilibrium price of lumber as a result of pine beetle infestations that are destroying trees in the West.What would your first step be?

Accepted Answer

A)  to identify the new equilibrium point 
B)  to decide whether the fires affect the quantity demanded 
C)  to decide whether the fires affect the price 
D)  to decide whether the fires shift demand or supply 
A)  to identify the new equilibrium point 
B)  to decide whether the fires affect the quantity demanded 
C)  to decide whether the fires affect the price 
D)  to decide whether the fires shift demand or supply

Question 10

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 11

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $385 to $390,what is the price elasticity of demand?

Accepted Answer

A)  0.1 
B)  0.3 
C)  1.0 
D)  3.4 
A)  0.1 
B)  0.3 
C)  1.0 
D)  3.4

Question 12

Suppose donuts are currently selling for $10 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect?

Accepted Answer

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

Question 13

If a shortage exists in a market,what do we know?

Accepted Answer

A)  The actual price is below equilibrium price,and quantity demanded is greater than quantity supplied. 
B)  The actual price is above equilibrium price,and quantity demanded is greater than quantity supplied. 
C)  The actual price is above equilibrium price,and quantity supplied is greater than quantity demanded. 
D)  The actual price is below equilibrium price,and quantity supplied is greater than quantity demanded. 
A)  The actual price is below equilibrium price,and quantity demanded is greater than quantity supplied. 
B)  The actual price is above equilibrium price,and quantity demanded is greater than quantity supplied. 
C)  The actual price is above equilibrium price,and quantity supplied is greater than quantity demanded. 
D)  The actual price is below equilibrium price,and quantity supplied is greater than quantity demanded.

Question 14

This question deals with demand and supply and refers you to the table below.
a.Given the table,graph the demand and supply curves for flashlights.Make certain to label equilibrium price and equilibrium quantity.
   
b.What is the equilibrium price and equilibrium quantity?
c.Suppose the price is currently at $5.What problem would exist in the economy? What would you expect to happen to price? Show this on your graph.
d.Suppose the price is currently $2.What problem exists in the economy? What would you expect to happen to price? Show this on your graph.

Accepted Answer

a. @#IMG-DLM& b.Equilibrium price would be $4 and

Question 15

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

Question 16

Figure 4-4  
-Refer to the Figure 4-4.If the price is $15,what would the quantity supplied be?

Accepted Answer

A)  400 
B)  600 
C)  700 
D)  800 
A)  400 
B)  600 
C)  700 
D)  800

Question 17

Figure 4-9  
-Refer to the Figure 4-9.Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking?

Accepted Answer

A)  graph a 
B)  graph b 
C)  graph c 
D)  both a and c could be used to show the result 
A)  graph a 
B)  graph b 
C)  graph c 
D)  both a and c could be used to show the result

Question 18

Figure 4-5  
-Refer to the Figure 4-5.Which of the four graphs represents the market for school supplies in September?

Accepted Answer

A)  graph A 
B)  graph B 
C)  graph C 
D)  graph D 
A)  graph A 
B)  graph B 
C)  graph C 
D)  graph D

Question 19

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $10 to $15,what is the price elasticity of demand?

Accepted Answer

A)  0.14 
B)  1.4 
C)  3.7 
D)  7.3 
A)  0.14 
B)  1.4 
C)  3.7 
D)  7.3

Question 20

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $40 to $44,what is the price elasticity of demand?

Accepted Answer

A)  0.2 
B)  0.7 
C)  1.7 
D)  2.0 
A)  0.2 
B)  0.7 
C)  1.7 
D)  2.0

A market is a group of buyers and sellers of a particular product.

Market demand is given as QD = 75 - P.Market supply is given as QS = 3P + 15.If price increases from $48 to $54,what is the price elasticity of demand?

Which of the following is NOT a determinant of demand?

What happens at the equilibrium price?

If buyers and / or sellers are price takers,what can they do individually?

Figure 4-4 -Refer to the Figure 4-4.If the price is $25,what would the quantity demanded be?

Baseballs and baseball bats are substitute goods.

Quantity demanded is equal to quantity supplied,at the equilibrium price.

Suppose you wish to analyze the change in the equilibrium price of lumber as a result of pine beetle infestations that are destroying trees in the West.What would your first step be?

What is an example of complementary goods?

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $385 to $390,what is the price elasticity of demand?

Suppose donuts are currently selling for $10 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect?

If a shortage exists in a market,what do we know?

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

Figure 4-4 -Refer to the Figure 4-4.If the price is $15,what would the quantity supplied be?

Figure 4-9 -Refer to the Figure 4-9.Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking?

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs represents the market for school supplies in September?

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $10 to $15,what is the price elasticity of demand?

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $40 to $44,what is the price elasticity of demand?

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 Small 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

A market is a group of buyers and sellers of a particular product.

Market demand is given as QD = 75 - P.Market supply is given as QS = 3P + 15.If price increases from $48 to $54,what is the price elasticity of demand?

Which of the following is NOT a determinant of demand?

What happens at the equilibrium price?

If buyers and / or sellers are price takers,what can they do individually?

Figure 4-4 -Refer to the Figure 4-4.If the price is $25,what would the quantity demanded be?

Baseballs and baseball bats are substitute goods.

Quantity demanded is equal to quantity supplied,at the equilibrium price.

Suppose you wish to analyze the change in the equilibrium price of lumber as a result of pine beetle infestations that are destroying trees in the West.What would your first step be?

What is an example of complementary goods?

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $385 to $390,what is the price elasticity of demand?

Suppose donuts are currently selling for $10 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect?

If a shortage exists in a market,what do we know?

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

Figure 4-4 -Refer to the Figure 4-4.If the price is $15,what would the quantity supplied be?

Figure 4-9 -Refer to the Figure 4-9.Which graph could be used to show the result of 5 percent of the country's smokers deciding to stop smoking?

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs represents the market for school supplies in September?

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $10 to $15,what is the price elasticity of demand?

Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.If price increases from $40 to $44,what is the price elasticity of demand?

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 Small 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

Filters