Exam 4: The Market Forces of Supply and Demand: Part B

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A decrease in income will shift the demand curve for an inferior good to the right.

(True/False)

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Question 81

When an increase in the price of one good lowers the demand for another good,the two goods are called complements.

(True/False)

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Question 82

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,if the size of the shift of the demand curve is larger than the size of the shift of the supply curve,then the equilibrium quantity rises.

(True/False)

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Question 83

When the price of a good is low,selling the good is profitable,and so the quantity supplied is large.

(True/False)

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Question 84

In a competitive market,there are so few buyers and so few sellers that each has a significant impact on the market price.

(True/False)

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Question 85

Prices allocate a market economy's scarce resources.

(True/False)

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Question 86

If baked potatoes and sour cream are complements,then an increase in the price of sour cream decreases the demand for baked potatoes.

(True/False)

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Question 87

In a market economy,prices are the signals that guide the allocation of scarce resources.

(True/False)

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Question 88

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

(True/False)

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Question 89

A market is a group of buyers and sellers of a particular good or service.

(True/False)

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Question 90

Supply refers to the position of the supply curve,whereas the quantity supplied refers to the amount suppliers wish to sell.

(True/False)

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Question 91

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

(True/False)

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Question 92

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

(True/False)

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Question 93

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

(True/False)

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Question 94

A movement upward and to the left along a given demand curve is called a decrease in demand.

(True/False)

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Question 95

An increase in supply will cause a decrease in price,which will cause an increase in demand.

(True/False)

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Question 96

A shortage is the same as an excess demand.

(True/False)

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Question 97

A yard sale is an example of a market.

(True/False)

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Question 98

Price will rise to eliminate a surplus.

(True/False)

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Question 99

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

(True/False)

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Question 100

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Exam 4: The Market Forces of Supply and Demand: Part B

A decrease in income will shift the demand curve for an inferior good to the right.

When an increase in the price of one good lowers the demand for another good,the two goods are called complements.

When the price of a good is low,selling the good is profitable,and so the quantity supplied is large.

In a competitive market,there are so few buyers and so few sellers that each has a significant impact on the market price.

Prices allocate a market economy's scarce resources.

If baked potatoes and sour cream are complements,then an increase in the price of sour cream decreases the demand for baked potatoes.

In a market economy,prices are the signals that guide the allocation of scarce resources.

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

A market is a group of buyers and sellers of a particular good or service.

Supply refers to the position of the supply curve,whereas the quantity supplied refers to the amount suppliers wish to sell.

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

A movement upward and to the left along a given demand curve is called a decrease in demand.

An increase in supply will cause a decrease in price,which will cause an increase in demand.

A shortage is the same as an excess demand.

A yard sale is an example of a market.

Price will rise to eliminate a surplus.

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand,they may put some of their current production into storage and supply less in the market today.

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B