Question 1

A decrease 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.

Question 2

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A) 1 percent reduction in the quantity demanded of cigarettes. 
B) 4 percent reduction in the quantity demanded of cigarettes. 
C) 10 percent reduction in the quantity demanded of cigarettes. 
D) 12 percent reduction in the quantity demanded of cigarettes. 
A) 1 percent reduction in the quantity demanded of cigarettes. 
B) 4 percent reduction in the quantity demanded of cigarettes. 
C) 10 percent reduction in the quantity demanded of cigarettes. 
D) 12 percent reduction in the quantity demanded of cigarettes.

Question 3

Figure 4-7  
-Refer to Figure 4-7.If the demand curve for Good X shifts from Db to Da,then

Accepted Answer

A) firms would be willing to supply more of Good X than before at each possible price. 
B) people are willing to buy less of Good X than before at each possible price. 
C) people's incomes must have increased. 
D) the price of Good X has increased. 
A) firms would be willing to supply more of Good X than before at each possible price. 
B) people are willing to buy less of Good X than before at each possible price. 
C) people's incomes must have increased. 
D) the price of Good X has increased.

Question 4

You watch a lot of HGTV during your summer vacation,and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house.You expect the demand for

Accepted Answer

A) granite countertops to shift to the left. 
B) granite countertops to shift to the right. 
C) substitute products such as marble countertops to shift to the right. 
D) substitute products such as marble countertops to be unaffected by buyers' preferences for granite. 
A) granite countertops to shift to the left. 
B) granite countertops to shift to the right. 
C) substitute products such as marble countertops to shift to the right. 
D) substitute products such as marble countertops to be unaffected by buyers' preferences for granite.

Question 5

A market demand curve shows how the total quantity demanded of a good varies as

Accepted Answer

A) income varies. 
B) price varies. 
C) price of the nearest substitute good varies. 
D) supply varies. 
A) income varies. 
B) price varies. 
C) price of the nearest substitute good varies. 
D) supply varies.

Question 6

If a good is normal,then an increase in income will result in a(n)

Accepted Answer

A) increase in the demand for the good. 
B) decrease in the demand for the good. 
C) movement down and to the right along the demand curve for the good. 
D) movement up and to the left along the demand curve for the good. 
A) increase in the demand for the good. 
B) decrease in the demand for the good. 
C) movement down and to the right along the demand curve for the good. 
D) movement up and to the left along the demand curve for the good.

Question 7

The market demand curve

Accepted Answer

A) is found by vertically adding the individual demand curves. 
B) slopes upward. 
C) represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D) represents the sum of the quantities demanded by all the buyers at each price of the good. 
A) is found by vertically adding the individual demand curves. 
B) slopes upward. 
C) represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D) represents the sum of the quantities demanded by all the buyers at each price of the good.

Question 8

Figure 4-3
 
-Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $15 is

Accepted Answer

A) 0 units. 
B) 10 units. 
C) 15 units. 
D) 25 units. 
A) 0 units. 
B) 10 units. 
C) 15 units. 
D) 25 units.

Question 9

A likely example of substitute goods for most people would be

Accepted Answer

A) peanut butter and jelly. 
B) tennis balls and tennis rackets. 
C) televisions and subscriptions to cable television services. 
D) pencils and pens. 
A) peanut butter and jelly. 
B) tennis balls and tennis rackets. 
C) televisions and subscriptions to cable television services. 
D) pencils and pens.

Question 10

If something happens to alter the quantity demanded at any given price,then

Accepted Answer

A) the demand curve becomes steeper. 
B) the demand curve becomes flatter. 
C) the demand curve shifts. 
D) we move along the demand curve. 
A) the demand curve becomes steeper. 
B) the demand curve becomes flatter. 
C) the demand curve shifts. 
D) we move along the demand curve.

Question 11

Figure 4-6    
-Refer to Figure 4-6.Suppose that the federal government is concerned about obesity in the United States.Congress is considering two plans.One would require "junk food" producers to include warning labels on all junk food.The other would impose a tax on all products considered to be junk food.We could illustrate the tax as producing a movement from

Accepted Answer

A) Point A to Point B in Panel 1. 
B) Point B to Point A in Panel 1. 
C) Point A to Point C in Panel 2. 
D) Point C to Point A in Panel 2. 
A) Point A to Point B in Panel 1. 
B) Point B to Point A in Panel 1. 
C) Point A to Point C in Panel 2. 
D) Point C to Point A in Panel 2.

Question 12

Figure 4-3
 
-Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $10 is

Accepted Answer

A) 0 units. 
B) 5 units. 
C) 8.33 units. 
D) 25 units. 
A) 0 units. 
B) 5 units. 
C) 8.33 units. 
D) 25 units.

Question 13

Which of the following is not held constant in a demand schedule?

Accepted Answer

A) income 
B) tastes 
C) price 
D) expectations 
A) income 
B) tastes 
C) price 
D) expectations

Question 14

Kara receives a promotion at work,which increases her income.We would expect Kara's demand for

Accepted Answer

A) each good she purchases to remain unchanged. 
B) normal goods to decrease. 
C) substitute goods to increase. 
D) inferior goods to decrease. 
A) each good she purchases to remain unchanged. 
B) normal goods to decrease. 
C) substitute goods to increase. 
D) inferior goods to decrease.

Question 15

A movement upward and to the left along a demand curve is called a(n)

Accepted Answer

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

Question 16

The demand curve for coffee shifts

Accepted Answer

A) only when income changes. 
B) when a determinant of the demand for coffee other than the price of coffee changes. 
C) when the price of coffee changes. 
D) Both b and c are correct. 
A) only when income changes. 
B) when a determinant of the demand for coffee other than the price of coffee changes. 
C) when the price of coffee changes. 
D) Both b and c are correct.

Question 17

Figure 4-5  
-Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Accepted Answer

A) a decrease in the price of golf balls 
B) an increase in the price of green fees 
C) an expectation by buyers that their incomes will increase in the very near future 
D) a change in consumer tastes away from golf and toward tennis 
A) a decrease in the price of golf balls 
B) an increase in the price of green fees 
C) an expectation by buyers that their incomes will increase in the very near future 
D) a change in consumer tastes away from golf and toward tennis

Question 18

If the demand for a good falls when income falls,then the good is called a(n)

Accepted Answer

A) normal good. 
B) regular good. 
C) luxury good. 
D) inferior good. 
A) normal good. 
B) regular good. 
C) luxury good. 
D) inferior good.

Question 19

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

Accepted Answer

A) inferior goods. 
B) normal goods. 
C) perfectly competitive goods. 
D) durable goods. 
A) inferior goods. 
B) normal goods. 
C) perfectly competitive goods. 
D) durable goods.

Question 20

When quantity demanded increases at every possible price,the demand curve has

Accepted Answer

A) shifted to the left. 
B) shifted to the right. 
C) not shifted;rather,we have moved along the demand curve to a new point on the same curve. 
D) not shifted;rather,the demand curve has become steeper. 
A) shifted to the left. 
B) shifted to the right. 
C) not shifted;rather,we have moved along the demand curve to a new point on the same curve. 
D) not shifted;rather,the demand curve has become steeper.

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

A decrease in the price of a good will

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Figure 4-7 -Refer to Figure 4-7.If the demand curve for Good X shifts from Db to Da,then

You watch a lot of HGTV during your summer vacation,and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house.You expect the demand for

A market demand curve shows how the total quantity demanded of a good varies as

If a good is normal,then an increase in income will result in a(n)

The market demand curve

Figure 4-3 -Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $15 is

A likely example of substitute goods for most people would be

If something happens to alter the quantity demanded at any given price,then

Figure 4-3 -Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $10 is

Which of the following is not held constant in a demand schedule?

Kara receives a promotion at work,which increases her income.We would expect Kara's demand for

A movement upward and to the left along a demand curve is called a(n)

The demand curve for coffee shifts

Figure 4-5 -Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

If the demand for a good falls when income falls,then the good is called a(n)

Suppose that when income rises,the demand curve for doctor's visits shifts to the right.In this case,we know doctor's visits are

When quantity demanded increases at every possible price,the demand curve has

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: 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

The Market Forces of Supply and Demand: Part B

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