Question 1

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs)at each price of SUPs,then

Accepted Answer

A) we will observe a movement downward and to the right along the demand curve for SUPs. 
B) we will observe a movement upward and to the left along the demand curve for SUPs. 
C) the demand curve for SUPs will shift to the right. 
D) the demand curve for SUPs will shift to the left. 
A) we will observe a movement downward and to the right along the demand curve for SUPs. 
B) we will observe a movement upward and to the left along the demand curve for SUPs. 
C) the demand curve for SUPs will shift to the right. 
D) the demand curve for SUPs will shift to the left.

Question 2

Figure 4-7  
-Refer to Figure 4-7.The shift from Db to Da is 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 3

If toast and butter are complements,then which of the following would increase the demand for toast?

Accepted Answer

A) a decrease in the price of toast 
B) a decrease in the price of butter 
C) an increase in the price of butter 
D) Both a and b are correct. 
A) a decrease in the price of toast 
B) a decrease in the price of butter 
C) an increase in the price of butter 
D) Both a and b are correct.

Question 4

When drawing a demand curve,

Accepted Answer

A) demand is measured along the vertical axis,and price is measured along the horizontal axis. 
B) quantity demanded is measured along the vertical axis,and price is measured along the horizontal axis. 
C) price is measured along the vertical axis,and demand is measured along the horizontal axis. 
D) price is measured along the vertical axis,and quantity demanded is measured along the horizontal axis. 
A) demand is measured along the vertical axis,and price is measured along the horizontal axis. 
B) quantity demanded is measured along the vertical axis,and price is measured along the horizontal axis. 
C) price is measured along the vertical axis,and demand is measured along the horizontal axis. 
D) price is measured along the vertical axis,and quantity demanded is measured along the horizontal axis.

Question 5

Which of the following events could shift the demand curve for gasoline to the left?

Accepted Answer

A) The income of gasoline buyers rises,and gasoline is a normal good. 
B) The income of gasoline buyers falls,and gasoline is an inferior good. 
C) Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars. 
D) The price of gasoline rises. 
A) The income of gasoline buyers rises,and gasoline is a normal good. 
B) The income of gasoline buyers falls,and gasoline is an inferior good. 
C) Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars. 
D) The price of gasoline rises.

Question 6

Which of the following does not affect an individual's demand curve?

Accepted Answer

A) expectations 
B) income 
C) prices of related goods 
D) the number of buyers 
A) expectations 
B) income 
C) prices of related goods 
D) the number of buyers

Question 7

Figure 4-5  
-Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Accepted Answer

A) a decrease in the price of mattresses 
B) a decrease in the price of custom wooden sleigh bed frames 
C) a change in consumer tastes away from wooden bedroom furniture 
D) a decrease in the number of people in the United States 
A) a decrease in the price of mattresses 
B) a decrease in the price of custom wooden sleigh bed frames 
C) a change in consumer tastes away from wooden bedroom furniture 
D) a decrease in the number of people in the United States

Question 8

Figure 4-5  
-Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Accepted Answer

A) an increase in the price of DVDs 
B) a decrease in the price of DVD players 
C) a change in consumer preferences toward watching movies in movie theaters rather than at home 
D) an expectation by buyers that their incomes will increase in the very near future 
A) an increase in the price of DVDs 
B) a decrease in the price of DVD players 
C) a change in consumer preferences toward watching movies in movie theaters rather than at home 
D) an expectation by buyers that their incomes will increase in the very near future

Question 9

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 10

Holding all other things constant,a higher price for ski lift tickets would

Accepted Answer

A) increase the number of skiers. 
B) increase the price of skis. 
C) decrease the number of skis sold. 
D) decrease the demand for other winter recreational activities. 
A) increase the number of skiers. 
B) increase the price of skis. 
C) decrease the number of skis sold. 
D) decrease the demand for other winter recreational activities.

Question 11

Suppose John and Wayne are the only two demanders of cowboy movies.Each month,John buys six cowboy movies when the price is $10 each,and he buys four cowboy movies when the price is $15 each.Each month,Wayne buys four cowboy movies when the price is $10 each,and he buys two cowboy movies when the price is $15 each.Which of the following points is on the market demand curve?

Accepted Answer

A) quantity demanded = 2;price = $15 
B) quantity demanded = 4;price = $25 
C) quantity demanded = 10;price = $10 
D) quantity demanded = 16;price = $25 
A) quantity demanded = 2;price = $15 
B) quantity demanded = 4;price = $25 
C) quantity demanded = 10;price = $10 
D) quantity demanded = 16;price = $25

Question 12

Currently you purchase ten frozen pizza per month.You will graduate from college in December,and you will start a new job in January.You have no plans to purchase frozen pizzas in January.For you,frozen pizzas are a(n)

Accepted Answer

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

Question 13

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded.This implies that X and Y are

Accepted Answer

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

Question 14

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Accepted Answer

A) increases. 
B) decreases. 
C) remains constant,but we observe a movement downward and to the right along the demand curve. 
D) remains constant,but we observe a movement upward and to the left along the demand curve. 
A) increases. 
B) decreases. 
C) remains constant,but we observe a movement downward and to the right along the demand curve. 
D) remains constant,but we observe a movement upward and to the left along the demand curve.

Question 15

Suppose that Amanda receives a pay increase.We would expect

Accepted Answer

A) to observe Amanda moving down and to the right along her given demand curve. 
B) Amanda's demand for inferior goods to decrease. 
C) Amanda's demand for each of two goods that are complements to increase. 
D) Amanda's demand for normal goods to decrease. 
A) to observe Amanda moving down and to the right along her given demand curve. 
B) Amanda's demand for inferior goods to decrease. 
C) Amanda's demand for each of two goods that are complements to increase. 
D) Amanda's demand for normal goods to decrease.

Question 16

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A) a decrease in the price of mp3 players 
B) a fad that makes mp3 players more popular among 12-25 year olds 
C) an increase in the price of digital music downloads,a complement for mp3 players 
D) a decrease in the price of satellite radio,a substitute for mp3 players 
A) a decrease in the price of mp3 players 
B) a fad that makes mp3 players more popular among 12-25 year olds 
C) an increase in the price of digital music downloads,a complement for mp3 players 
D) a decrease in the price of satellite radio,a substitute for mp3 players

Question 17

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

A) the prices of related goods 
B) income 
C) tastes 
D) the prices of the inputs used to produce the good 
A) the prices of related goods 
B) income 
C) tastes 
D) the prices of the inputs used to produce the good

Question 18

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 $6 is

Accepted Answer

A) 12 units. 
B) 14 units. 
C) 19 units. 
D) 21 units. 
A) 12 units. 
B) 14 units. 
C) 19 units. 
D) 21 units.

Question 19

Figure 4-2    
-Refer to Figure 4-2.Suppose Phil and Miss Kay are the only consumers in the market.If the price is $6,then the market quantity demanded is

Accepted Answer

A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 12 units. 
A) 4 units. 
B) 6 units. 
C) 8 units. 
D) 12 units.

Question 20

A likely example of complementary goods for most people would be

Accepted Answer

A) canoes and paddles. 
B) snow mobiles and sofas. 
C) coffee and tea. 
D) tennis balls and basketballs. 
A) canoes and paddles. 
B) snow mobiles and sofas. 
C) coffee and tea. 
D) tennis balls and basketballs.

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

If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs)at each price of SUPs,then

Figure 4-7 -Refer to Figure 4-7.The shift from Db to Da is called

If toast and butter are complements,then which of the following would increase the demand for toast?

When drawing a demand curve,

Which of the following events could shift the demand curve for gasoline to the left?

Which of the following does not affect an individual's demand curve?

Figure 4-5 -Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Figure 4-5 -Refer to Figure 4-5.Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

A decrease in the price of a good would

Holding all other things constant,a higher price for ski lift tickets would

Currently you purchase ten frozen pizza per month.You will graduate from college in December,and you will start a new job in January.You have no plans to purchase frozen pizzas in January.For you,frozen pizzas are a(n)

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded.This implies that X and Y are

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Suppose that Amanda receives a pay increase.We would expect

Which of the following would not shift the demand curve for mp3 players?

Which of the following is not a determinant of the demand for a particular good?

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 $6 is

Figure 4-2 -Refer to Figure 4-2.Suppose Phil and Miss Kay are the only consumers in the market.If the price is $6,then the market quantity demanded is

A likely example of complementary goods for most people would be

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