Question 1

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4-1  
-Refer to Figure 4-1. The movement from point A to point B on the graph shows an:

Accepted Answer

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

Question 3

Figure 4-22  
-Refer to Figure 4-22. What is the equilibrium quantity in this market?

Accepted Answer

A)  4 units 
B)  8 units 
C)  12 units 
D)  16 units 
A)  4 units 
B)  8 units 
C)  12 units 
D)  16 units

Question 4

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

Accepted Answer

A)  Price will fall, and the effect on quantity is ambiguous. 
B)  Price will rise, and the effect on quantity is ambiguous. 
C)  Quantity will fall, and the effect on price is ambiguous. 
D)  Quantity will rise, and the effect on price is ambiguous. 
A)  Price will fall, and the effect on quantity is ambiguous. 
B)  Price will rise, and the effect on quantity is ambiguous. 
C)  Quantity will fall, and the effect on price is ambiguous. 
D)  Quantity will rise, and the effect on price is ambiguous.

Question 5

Two goods are complements when a decrease in the price of one good

Accepted Answer

A)  decreases the quantity demanded of the other good. 
B)  decreases the demand for the other good. 
C)  increases the quantity demanded of the other good. 
D)  increases the demand for the other good. 
A)  decreases the quantity demanded of the other good. 
B)  decreases the demand for the other good. 
C)  increases the quantity demanded of the other good. 
D)  increases the demand for the other good.

Question 6

Figure 4-24
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x. 
A)  DA to DB. 
B)  DB to DA. 
C)  x to y. 
D)  y to x.

Question 7

In markets, prices move toward equilibrium because of

Accepted Answer

A)  the actions of buyers and sellers. 
B)  government regulations placed on market participants. 
C)  increased competition among sellers. 
D)  buyers' ability to affect market outcomes. 
A)  the actions of buyers and sellers. 
B)  government regulations placed on market participants. 
C)  increased competition among sellers. 
D)  buyers' ability to affect market outcomes.

Question 8

Figure 4-20  
-Refer to Figure 4-20. If the price is $10, then there would be a

Accepted Answer

A)  shortage of 400 units, and price would rise. 
B)  surplus of 400 units, and price would rise. 
C)  shortage of 600 units, and price would rise. 
D)  surplus of 600 units, and price would rise. 
A)  shortage of 400 units, and price would rise. 
B)  surplus of 400 units, and price would rise. 
C)  shortage of 600 units, and price would rise. 
D)  surplus of 600 units, and price would rise.

Question 9

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)  a decrease in the price of gasoline 
B)  an increase in consumer income, assuming gasoline is a normal good 
C)  an increase in the price of cars, a complement for gasoline 
D)  a decrease in the expected future price of gasoline 
A)  a decrease in the price of gasoline 
B)  an increase in consumer income, assuming gasoline is a normal good 
C)  an increase in the price of cars, a complement for gasoline 
D)  a decrease in the expected future price of gasoline

Question 10

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 11

A supply schedule is a table that shows the relationship between

Accepted Answer

A)  price and quantity supplied. 
B)  input costs and quantity supplied. 
C)  quantity demanded and quantity supplied. 
D)  profit and quantity supplied. 
A)  price and quantity supplied. 
B)  input costs and quantity supplied. 
C)  quantity demanded and quantity supplied. 
D)  profit and quantity supplied.

Question 12

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 13

Figure 4-18  
-Refer to Figure 4-18. At a price of $35, there would be

Accepted Answer

A)  a shortage, and the price would tend to rise from $35 to a higher price. 
B)  a surplus, and the price would tend to rise from $35 to a higher price. 
C)  excess demand, and the price would tend to fall from $35 to a lower price. 
D)  excess supply, and the price would tend to fall from $35 to a lower price. 
A)  a shortage, and the price would tend to rise from $35 to a higher price. 
B)  a surplus, and the price would tend to rise from $35 to a higher price. 
C)  excess demand, and the price would tend to fall from $35 to a lower price. 
D)  excess supply, and the price would tend to fall from $35 to a lower price.

Question 14

If a good is inferior, then an increase in income will result in an)

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 15

If Max experiences a decrease in his income, then we would expect Max's demand for

Accepted Answer

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

Question 16

A university's football stadium is never more than half-full during football games. This indicates

Accepted Answer

A)  the ticket price is above the equilibrium price. 
B)  the ticket price is below the equilibrium price. 
C)  the ticket price is at the equilibrium price. 
D)  nothing about the equilibrium price. 
A)  the ticket price is above the equilibrium price. 
B)  the ticket price is below the equilibrium price. 
C)  the ticket price is at the equilibrium price. 
D)  nothing about the equilibrium price.

Question 17

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.

Accepted Answer

A) True 
 B)False

Question 18

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 10 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 19

The dictionary defines equilibrium as a situation in which forces

Accepted Answer

A)  are in balance. 
B)  are the same. 
C)  clash. 
D)  remain constant. 
A)  are in balance. 
B)  are the same. 
C)  clash. 
D)  remain constant.

Question 20

When quantity demanded has increased at every price, it might be because

Accepted Answer

A)  the number of buyers in the market has decreased. 
B)  income has increased, and the good is an inferior good. 
C)  the costs incurred by sellers producing the good have decreased. 
D)  the price of a complementary good has decreased. 
A)  the number of buyers in the market has decreased. 
B)  income has increased, and the good is an inferior good. 
C)  the costs incurred by sellers producing the good have decreased. 
D)  the price of a complementary good has decreased.

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows an:

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium quantity in this market?

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

Two goods are complements when a decrease in the price of one good

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

In markets, prices move toward equilibrium because of

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a

Which of the following would shift the demand curve for gasoline to the right?

An increase in the price of pizza will shift the demand curve for pizza to the left.

A supply schedule is a table that shows the relationship between

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

Figure 4-18 -Refer to Figure 4-18. At a price of $35, there would be

If a good is inferior, then an increase in income will result in an)

If Max experiences a decrease in his income, then we would expect Max's demand for

A university's football stadium is never more than half-full during football games. This indicates

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.

The dictionary defines equilibrium as a situation in which forces

When quantity demanded has increased at every price, it might be because

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

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Figure 4-1 -Refer to Figure 4-1. The movement from point A to point B on the graph shows an:

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium quantity in this market?

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?

Two goods are complements when a decrease in the price of one good

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

In markets, prices move toward equilibrium because of

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a

Which of the following would shift the demand curve for gasoline to the right?

An increase in the price of pizza will shift the demand curve for pizza to the left.

A supply schedule is a table that shows the relationship between

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

Figure 4-18 -Refer to Figure 4-18. At a price of $35, there would be

If a good is inferior, then an increase in income will result in an)

If Max experiences a decrease in his income, then we would expect Max's demand for

A university's football stadium is never more than half-full during football games. This indicates

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.

The dictionary defines equilibrium as a situation in which forces

When quantity demanded has increased at every price, it might be because

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