Question 1

Exhibit 4-4  
-Refer to Exhibit 4-4.A shift from demand curve D to D' illustrates a(n)

Accepted Answer

A) decrease in demand 
B) decrease in quantity demanded 
C) increase in quantity demanded 
D) increase in demand 
E) increase in supply 
A) decrease in demand 
B) decrease in quantity demanded 
C) increase in quantity demanded 
D) increase in demand 
E) increase in supply

Question 2

Exhibit 4-1  
-Consider Exhibit 4-1.Which of the following best represents an decrease in demand?

Accepted Answer

A) the movement from D to C 
B) the movement from C to E 
C) the movement from A to B 
D) the movement from F to E 
E) the movement from D to B 
A) the movement from D to C 
B) the movement from C to E 
C) the movement from A to B 
D) the movement from F to E 
E) the movement from D to B

Question 3

The demand for a product is the amount that

Accepted Answer

A) buyers purchase in the market 
B) buyers are willing to purchase at a given price 
C) sellers are willing to sell at a particular price 
D) buyers are willing and able to purchase at alternative prices 
E) buyers are able to purchase at a specific price 
A) buyers purchase in the market 
B) buyers are willing to purchase at a given price 
C) sellers are willing to sell at a particular price 
D) buyers are willing and able to purchase at alternative prices 
E) buyers are able to purchase at a specific price

Question 4

What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?

Accepted Answer

A) Both equilibrium price and equilibrium quantity rise. 
B) Both equilibrium price and equilibrium quantity fall. 
C) Equilibrium price rises and equilibrium quantity falls. 
D) Equilibrium price falls and equilibrium quantity rises. 
E) Both equilibrium price and equilibrium quantity remain unchanged. 
A) Both equilibrium price and equilibrium quantity rise. 
B) Both equilibrium price and equilibrium quantity fall. 
C) Equilibrium price rises and equilibrium quantity falls. 
D) Equilibrium price falls and equilibrium quantity rises. 
E) Both equilibrium price and equilibrium quantity remain unchanged.

Question 5

The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good)is

Accepted Answer

A) to increase equilibrium price and quantity 
B) to decrease equilibrium price and quantity 
C) to increase equilibrium price and decrease equilibrium quantity 
D) to increase equilibrium quantity and decrease equilibrium price 
E) that equilibrium price and quantity remain constant 
A) to increase equilibrium price and quantity 
B) to decrease equilibrium price and quantity 
C) to increase equilibrium price and decrease equilibrium quantity 
D) to increase equilibrium quantity and decrease equilibrium price 
E) that equilibrium price and quantity remain constant

Question 6

Exhibit 4-14  
-Refer to exhibit 4-14.An increase in the price of baby formula would cause which of the following to happen?

Accepted Answer

A) demand shift from D1 to D2 
B) move on demand curve D1 from a to b 
C) demand shift from D2 to D1 
D) move on demand curve D2 from d to c 
E) move from b on demand curve D1 to c on demand curve D2 
A) demand shift from D1 to D2 
B) move on demand curve D1 from a to b 
C) demand shift from D2 to D1 
D) move on demand curve D2 from d to c 
E) move from b on demand curve D1 to c on demand curve D2

Question 7

Which of the following would shift the supply curve for a good to the left?

Accepted Answer

A) an increase in the price of that good 
B) a decrease in the price of an alternative good 
C) an improvement in technology for producing that good 
D) an increase in the cost of an important resource used to make that good 
E) an increase in the number of producers 
A) an increase in the price of that good 
B) a decrease in the price of an alternative good 
C) an improvement in technology for producing that good 
D) an increase in the cost of an important resource used to make that good 
E) an increase in the number of producers

Question 8

For a given supply curve,an increase in demand will typically

Accepted Answer

A) increase price,but quantity could change in either direction 
B) increase quantity,but price could change in either direction 
C) increase price but leave quantity unchanged 
D) decrease both quantity and price 
E) increase both quantity and price 
A) increase price,but quantity could change in either direction 
B) increase quantity,but price could change in either direction 
C) increase price but leave quantity unchanged 
D) decrease both quantity and price 
E) increase both quantity and price

Question 9

The slope of the demand curve for a normal good must be positive.

Accepted Answer

A) True 
 B)False

Question 10

The law of demand is illustrated by a demand curve that is

Accepted Answer

A) horizontal 
B) vertical 
C) upward sloping 
D) constant 
E) downward sloping 
A) horizontal 
B) vertical 
C) upward sloping 
D) constant 
E) downward sloping

Question 11

An increase in demand will cause a(n)

Accepted Answer

A) increase in supply 
B) decrease in supply 
C) decrease in quantity supplied 
D) increase in quantity supplied 
E) decrease in equilibrium price 
A) increase in supply 
B) decrease in supply 
C) decrease in quantity supplied 
D) increase in quantity supplied 
E) decrease in equilibrium price

Question 12

Exhibit 4-2  
-Consider Exhibit 4-2 which shows 3 supply curves for milk.Which of the following would shift the supply curve for milk from S1 to S2?

Accepted Answer

A) a decrease in the price cattle feed 
B) the expectation of a lower price in the near future 
C) an increase in the price of milk 
D) an increase in the price of beef 
E) a decrease in the number of dairy farmers 
A) a decrease in the price cattle feed 
B) the expectation of a lower price in the near future 
C) an increase in the price of milk 
D) an increase in the price of beef 
E) a decrease in the number of dairy farmers

Question 13

Which of the following would most likely increase the supply of college textbooks?

Accepted Answer

A) five major publishers go out of business 
B) paper costs double 
C) the wage rate of printers increases 
D) producers expect the price to rise in the future 
E) technology of book production improves 
A) five major publishers go out of business 
B) paper costs double 
C) the wage rate of printers increases 
D) producers expect the price to rise in the future 
E) technology of book production improves

Question 14

For a renter,the income effect of an increase in apartment rents will

Accepted Answer

A) have a greater effect than the income effect of an increase in the price of chewing gum 
B) have no impact on the demand curve for apartments,because everything except price is assumed constant 
C) have less of an effect than the income effect of an increase in the price of chewing gum 
D) be almost negligible,because housing is a necessity 
E) occur only when income increases 
A) have a greater effect than the income effect of an increase in the price of chewing gum 
B) have no impact on the demand curve for apartments,because everything except price is assumed constant 
C) have less of an effect than the income effect of an increase in the price of chewing gum 
D) be almost negligible,because housing is a necessity 
E) occur only when income increases

Question 15

The basic reason that supply curves slope upward is that

Accepted Answer

A) demand curves slope downward 
B) production is characterized by increasing costs 
C) profits decline as product prices rise 
D) greater output can only result from improved technology 
E) price and quantity supplied are inversely related 
A) demand curves slope downward 
B) production is characterized by increasing costs 
C) profits decline as product prices rise 
D) greater output can only result from improved technology 
E) price and quantity supplied are inversely related

Question 16

Exhibit 4-7  
-In Exhibit 4-7,which of the following is true at the price ceiling,P?

Accepted Answer

A) The excess quantity supplied equals 300 gallons. 
B) The excess quantity demanded equals 300 gallons. 
C) The excess quantity supplied equals 500 gallons. 
D) The excess quantity demanded equals 800 gallons. 
E) Sales will be equal to 800 gallons. 
A) The excess quantity supplied equals 300 gallons. 
B) The excess quantity demanded equals 300 gallons. 
C) The excess quantity supplied equals 500 gallons. 
D) The excess quantity demanded equals 800 gallons. 
E) Sales will be equal to 800 gallons.

Question 17

Which of the following will not shift the demand curve for movie tickets?

Accepted Answer

A) a change in the cost of babysitting services 
B) a change in the price of movie tickets 
C) a change in the quality of television programs 
D) a change in the income of movie-goers 
E) a change in the number of consumers 
A) a change in the cost of babysitting services 
B) a change in the price of movie tickets 
C) a change in the quality of television programs 
D) a change in the income of movie-goers 
E) a change in the number of consumers

Question 18

If a certain type of clothing becomes more fashionable,we would expect that its price

Accepted Answer

A) will decrease and quantity will remain constant 
B) and quantity will both decrease 
C) will increase and quantity will decrease 
D) will decrease and quantity will increase 
E) and quantity will both increase 
A) will decrease and quantity will remain constant 
B) and quantity will both decrease 
C) will increase and quantity will decrease 
D) will decrease and quantity will increase 
E) and quantity will both increase

Question 19

If demand decreases,then quantity supplied will increase.

Accepted Answer

A) True 
 B)False

Question 20

If the tea harvest is bad in a particular year,what will happen in the market for coffee?

Accepted Answer

A) increased price and decreased quantity 
B) increased price and increased quantity 
C) decreased price and increased quantity 
D) decreased price and decreased quantity 
E) no change in equilibrium price and quantity 
A) increased price and decreased quantity 
B) increased price and increased quantity 
C) decreased price and increased quantity 
D) decreased price and decreased quantity 
E) no change in equilibrium price and quantity

Exam 4: Demand, supply, and Markets

Exhibit 4-4 -Refer to Exhibit 4-4.A shift from demand curve D to D' illustrates a(n)

Exhibit 4-1 -Consider Exhibit 4-1.Which of the following best represents an decrease in demand?

The demand for a product is the amount that

What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?

The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good)is

Exhibit 4-14 -Refer to exhibit 4-14.An increase in the price of baby formula would cause which of the following to happen?

Which of the following would shift the supply curve for a good to the left?

For a given supply curve,an increase in demand will typically

The slope of the demand curve for a normal good must be positive.

The law of demand is illustrated by a demand curve that is

An increase in demand will cause a(n)

Exhibit 4-2 -Consider Exhibit 4-2 which shows 3 supply curves for milk.Which of the following would shift the supply curve for milk from S1 to S2?

Which of the following would most likely increase the supply of college textbooks?

For a renter,the income effect of an increase in apartment rents will

The basic reason that supply curves slope upward is that

Exhibit 4-7 -In Exhibit 4-7,which of the following is true at the price ceiling,P?

Which of the following will not shift the demand curve for movie tickets?

If a certain type of clothing becomes more fashionable,we would expect that its price

If demand decreases,then quantity supplied will increase.

If the tea harvest is bad in a particular year,what will happen in the market for coffee?

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aaggregate Expenditure and Aggregate Demand

Baggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

Externalities and the Environment

International Finance

Economic Development

understanding Graphs

National Income Accounts

The Algebra of Demand-Side Equilibrium

Filters

Exhibit 4-2 -Consider Exhibit 4-2 which shows 3 supply curves for milk.Which of the following would shift the supply curve for milk from S₁ to S₂?