Question 1

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

Accepted Answer

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

Question 2

Figure 4-20  
-Refer to Figure 4-20. At a price of $15,

Accepted Answer

A)  quantity demanded exceeds quantity supplied. 
B)  there is a shortage. 
C)  there is an excess demand. 
D)  All of the above are correct. 
A)  quantity demanded exceeds quantity supplied. 
B)  there is a shortage. 
C)  there is an excess demand. 
D)  All of the above are correct.

Question 3

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
         , where   is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. Suppose the price is currently equal to 18 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus?

Accepted Answer

There is a

Question 4

For a competitive market,

Accepted Answer

A)  a seller can always increase her profit by raising the price of her product. 
B)  if a seller charges more than the going price, buyers will go elsewhere to make their purchases. 
C)  a seller often charges less than the going price to increase sales and profit. 
D)  a single buyer can influence the price of the product but only when purchasing from several sellers in a short period of time. 
A)  a seller can always increase her profit by raising the price of her product. 
B)  if a seller charges more than the going price, buyers will go elsewhere to make their purchases. 
C)  a seller often charges less than the going price to increase sales and profit. 
D)  a single buyer can influence the price of the product but only when purchasing from several sellers in a short period of time.

Question 5

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Accepted Answer

A)  supply curve for Matthew's pies will increase. 
B)  supply curve for Matthew's pies will decrease. 
C)  demand curve for Matthew's pies will increase. 
D)  demand curve for Matthew's pies will decrease. 
A)  supply curve for Matthew's pies will increase. 
B)  supply curve for Matthew's pies will decrease. 
C)  demand curve for Matthew's pies will increase. 
D)  demand curve for Matthew's pies will decrease.

Question 6

Economists normally

Accepted Answer

A)  do not try to explain people's tastes, but they do try to explain what happens when tastes change. 
B)  believe that they must be able to explain people's tastes in order to explain what happens when tastes change. 
C)  do not believe that people's tastes determine demand, so they ignore the subject of tastes. 
D)  incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements. 
A)  do not try to explain people's tastes, but they do try to explain what happens when tastes change. 
B)  believe that they must be able to explain people's tastes in order to explain what happens when tastes change. 
C)  do not believe that people's tastes determine demand, so they ignore the subject of tastes. 
D)  incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

If a increase in income decreases 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 10

The demand for a good or service is determined by

Accepted Answer

A)  those who buy the good or service. 
B)  the government. 
C)  those who sell the good or service. 
D)  both those who buy and those who sell the good or service. 
A)  those who buy the good or service. 
B)  the government. 
C)  those who sell the good or service. 
D)  both those who buy and those who sell the good or service.

Question 11

Figure 4-30  
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curves) shifts) and in which direction?

Accepted Answer

Supply shi

Question 12

Figure 4-11  
-Refer to Figure 4-11. The movement from point A to point B on the graph represents

Accepted Answer

A)  an increased willingness and ability on the part of suppliers to supply the good at each possible price. 
B)  an increase in the number of suppliers. 
C)  a decrease in the price of a relevant input. 
D)  an increase in the price of the good that is being supplied and the suppliers' responses to that price change. 
A)  an increased willingness and ability on the part of suppliers to supply the good at each possible price. 
B)  an increase in the number of suppliers. 
C)  a decrease in the price of a relevant input. 
D)  an increase in the price of the good that is being supplied and the suppliers' responses to that price change.

Question 13

Figure 4-21  
-Refer to Figure 4-21. At a price of $4, there is a

Accepted Answer

A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units. 
A)  surplus of 1 unit. 
B)  surplus of 3 units. 
C)  shortage of 1 unit. 
D)  shortage of 3 units.

Question 14

All goods and services are sold in perfectly competitive markets.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  0. 
B)  100. 
C)  200. 
D)  400. 
A)  0. 
B)  100. 
C)  200. 
D)  400.

Question 16

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

Accepted Answer

A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase. 
A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would increase, and the equilibrium quantity would decrease. 
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.

Question 17

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

Accepted Answer

A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous. 
D)  The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous. 
A)  Both the equilibrium price and quantity would increase. 
B)  Both the equilibrium price and quantity would decrease. 
C)  The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous. 
D)  The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.

Question 18

A decrease in supply is represented by a

Accepted Answer

A)  movement downward and to the left along a supply curve. 
B)  movement upward and to the right along a supply curve. 
C)  rightward shift of a supply curve. 
D)  leftward shift of a supply curve. 
A)  movement downward and to the left along a supply curve. 
B)  movement upward and to the right along a supply curve. 
C)  rightward shift of a supply curve. 
D)  leftward shift of a supply curve.

Question 19

When quantity demanded decreases 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 flatter. 
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 flatter.

Question 20

Figure 4-8  
-Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless printers, a complementary good, decreases. Which of the following changes would occur?

Accepted Answer

A)  a movement along D2 from point A to point B 
B)  a movement along D2 from point B to point A 
C)  a shift from D1 to D2 
D)  a shift from D2 to D1 
A)  a movement along D2 from point A to point B 
B)  a movement along D2 from point B to point A 
C)  a shift from D1 to D2 
D)  a shift from D2 to D1

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

Figure 4-20 -Refer to Figure 4-20. At a price of $15,

For a competitive market,

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Economists normally

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

If a increase in income decreases the demand for a good, then the good is an)

The demand for a good or service is determined by

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curves) shifts) and in which direction?

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

All goods and services are sold in perfectly competitive markets.

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

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

A decrease in supply is represented by a

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

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless printers, a complementary good, decreases. Which of the following changes would occur?

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

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

Figure 4-20 -Refer to Figure 4-20. At a price of $15,

For a competitive market,

Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the

Economists normally

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

If a increase in income decreases the demand for a good, then the good is an)

The demand for a good or service is determined by

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curves) shifts) and in which direction?

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

All goods and services are sold in perfectly competitive markets.

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

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks?

A decrease in supply is represented by a

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

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless printers, a complementary good, decreases. Which of the following changes would occur?

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