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

Table 4-3
  
-Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $2 is

Accepted Answer

A)  0 units. 
B)  3.5 units. 
C)  12 units. 
D)  14 units. 
A)  0 units. 
B)  3.5 units. 
C)  12 units. 
D)  14 units.

Question 3

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Accepted Answer

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

Question 4

Whenever a determinant of supply other than price changes, the supply curve shifts.

Accepted Answer

A) True 
 B)False

Question 5

If the price of a good is low,

Accepted Answer

A)  firms would increase profit by increasing output. 
B)  the quantity supplied of the good could be zero. 
C)  the supply curve for the good will shift to the left. 
D)  firms can and should raise the price of the product. 
A)  firms would increase profit by increasing output. 
B)  the quantity supplied of the good could be zero. 
C)  the supply curve for the good will shift to the left. 
D)  firms can and should raise the price of the product.

Question 6

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 7

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Accepted Answer

A)  and quantity both decrease. 
B)  and quantity both increase. 
C)  increases, and the equilibrium quantity decreases. 
D)  decreases, and the equilibrium quantity increases. 
A)  and quantity both decrease. 
B)  and quantity both increase. 
C)  increases, and the equilibrium quantity decreases. 
D)  decreases, and the equilibrium quantity increases.

Question 8

Individual demand curves are summed horizontally to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 9

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

Accepted Answer

The demand

Question 10

An increase in the price of a good will

Accepted Answer

A)  increase supply. 
B)  decrease supply. 
C)  increase quantity supplied. 
D)  decrease quantity supplied. 
A)  increase supply. 
B)  decrease supply. 
C)  increase quantity supplied. 
D)  decrease quantity supplied.

Question 11

A decrease in the number of sellers in the market causes

Accepted Answer

A)  the supply curve to shift to the left. 
B)  the supply curve to shift to the right. 
C)  a movement up and to the right along a stationary supply curve. 
D)  a movement downward and to the left along a stationary supply curve. 
A)  the supply curve to shift to the left. 
B)  the supply curve to shift to the right. 
C)  a movement up and to the right along a stationary supply curve. 
D)  a movement downward and to the left along a stationary supply curve.

Question 12

A demand schedule is a table that shows the relationship between

Accepted Answer

A)  quantity demanded and quantity supplied. 
B)  income and quantity demanded. 
C)  price and quantity demanded. 
D)  price and income. 
A)  quantity demanded and quantity supplied. 
B)  income and quantity demanded. 
C)  price and quantity demanded. 
D)  price and income.

Question 13

If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

Accepted Answer

The equilibrium pric

Question 14

If a decrease in income increases the demand for a good, then the good is an)

Accepted Answer

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

Question 15

Table 4-1
  
-Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units. 
A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units.

Question 16

If suppliers expect the price of their product to fall in the future, then they will

Accepted Answer

A)  decrease supply now. 
B)  increase supply now. 
C)  decrease supply in the future but not now. 
D)  increase supply in the future but not now. 
A)  decrease supply now. 
B)  increase supply now. 
C)  decrease supply in the future but not now. 
D)  increase supply in the future but not now.

Question 17

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A)  There is a shortage of oranges. 
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D)  All of the above are correct. 
A)  There is a shortage of oranges. 
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D)  All of the above are correct.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The following table contains a supply schedule for a good.
 
If the law of supply applies to this good, then Q1 could be

Accepted Answer

A)  0. 
B)  50. 
C)  100. 
D)  150. 
A)  0. 
B)  50. 
C)  100. 
D)  150.

Question 20

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

A decrease in the price of a good will

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $2 is

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Whenever a determinant of supply other than price changes, the supply curve shifts.

If the price of a good is low,

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

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Individual demand curves are summed horizontally to obtain the market demand curve.

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

An increase in the price of a good will

A decrease in the number of sellers in the market causes

A demand schedule is a table that shows the relationship between

If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

If a decrease in income increases the demand for a good, then the good is an)

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

If suppliers expect the price of their product to fall in the future, then they will

Which of the following events would cause the price of oranges to fall?

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

The following table contains a supply schedule for a good. If the law of supply applies to this good, then Q1 could be

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

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

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the 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

Six Debates Over Macroeconomic Policy

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Exam 4: The Market Forces of Supply and Demand

A decrease in the price of a good will

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $2 is

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Whenever a determinant of supply other than price changes, the supply curve shifts.

If the price of a good is low,

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

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Individual demand curves are summed horizontally to obtain the market demand curve.

Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?

An increase in the price of a good will

A decrease in the number of sellers in the market causes

A demand schedule is a table that shows the relationship between

If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

If a decrease in income increases the demand for a good, then the good is an)

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle, Laura, and Hillary and the price falls by $1, the quantity demanded in the market increases by

If suppliers expect the price of their product to fall in the future, then they will

Which of the following events would cause the price of oranges to fall?

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

The following table contains a supply schedule for a good. If the law of supply applies to this good, then Q1 could be

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

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

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the 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

Six Debates Over Macroeconomic Policy

Filters