Question 1

Which of the following events must cause equilibrium quantity to rise?

Accepted Answer

A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase 
A)  demand increases and supply decreases 
B)  demand and supply both decrease 
C)  demand decreases and supply increases 
D)  demand and supply both increase

Question 2

In a perfectly competitive market, buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 3

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Accepted Answer

The supply

Question 4

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

Accepted Answer

A)  an increase in the price of mp3 players 
B)  a decrease in the number of sellers of mp3 players 
C)  an increase in the price of plastic, an input into the production of mp3 players 
D)  an improvement in the technology used to produce mp3 players 
A)  an increase in the price of mp3 players 
B)  a decrease in the number of sellers of mp3 players 
C)  an increase in the price of plastic, an input into the production of mp3 players 
D)  an improvement in the technology used to produce mp3 players

Question 5

A decrease in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve. 
B)  results in a movement upward and to the left along a demand curve. 
C)  shifts the demand curve to the left. 
D)  shifts the demand curve to the right. 
A)  results in a movement downward and to the right along a demand curve. 
B)  results in a movement upward and to the left along a demand curve. 
C)  shifts the demand curve to the left. 
D)  shifts the demand curve to the right.

Question 6

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

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 7

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Accepted Answer

A)  both the equilibrium price and quantity to decrease. 
B)  both the equilibrium price and quantity to increase. 
C)  the equilibrium price to increase and the equilibrium quantity to decrease. 
D)  the equilibrium price to decrease and the equilibrium quantity to increase. 
A)  both the equilibrium price and quantity to decrease. 
B)  both the equilibrium price and quantity to increase. 
C)  the equilibrium price to increase and the equilibrium quantity to decrease. 
D)  the equilibrium price to decrease and the equilibrium quantity to increase.

Question 8

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

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 9

The law of supply states that, other things equal, when the price of a good

Accepted Answer

A)  falls, the supply of the good rises. 
B)  rises, the quantity supplied of the good rises. 
C)  rises, the supply of the good falls. 
D)  falls, the quantity supplied of the good rises. 
A)  falls, the supply of the good rises. 
B)  rises, the quantity supplied of the good rises. 
C)  rises, the supply of the good falls. 
D)  falls, the quantity supplied of the good rises.

Question 10

Assume a market is perfectly competitive. When a new producer enters the market, the

Accepted Answer

A)  price in the market increases. 
B)  price in the market decreases. 
C)  price in the market does not change. 
D)  market is no longer a competitive market. 
A)  price in the market increases. 
B)  price in the market decreases. 
C)  price in the market does not change. 
D)  market is no longer a competitive market.

Question 11

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)  only Harry's 
B)  only Darby's 
C)  both Harry's and Darby's 
D)  neither Harry's nor Darby's 
A)  only Harry's 
B)  only Darby's 
C)  both Harry's and Darby's 
D)  neither Harry's nor Darby's

Question 12

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

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 13

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Accepted Answer

A)  decreases. 
B)  increases. 
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)  decreases. 
B)  increases. 
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 14

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following:
• x = 2.
• The current price of a sandwich is $5.00.
• The market quantity supplied of sandwiches is 10.
• The law of supply applies to the supply of sandwiches.
Then there is a

Accepted Answer

A)  shortage of 5 sandwiches, and the price would be expected to rise from its current level of $5.00. 
B)  shortage of 5 sandwiches, and the price would be expected to fall from its current level of $5.00. 
C)  surplus of 5 sandwiches, and the price would be expected to rise from its current level of $5.00. 
D)  surplus of 5 sandwiches, and the price would be expected to fall from its current level of $5.00. 
A)  shortage of 5 sandwiches, and the price would be expected to rise from its current level of $5.00. 
B)  shortage of 5 sandwiches, and the price would be expected to fall from its current level of $5.00. 
C)  surplus of 5 sandwiches, and the price would be expected to rise from its current level of $5.00. 
D)  surplus of 5 sandwiches, and the price would be expected to fall from its current level of $5.00.

Question 15

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 16

Table 4-16
The following table shows the supply and demand schedules in a market.
  
-Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 17

A market includes

Accepted Answer

A)  buyers only. 
B)  sellers only. 
C)  both buyers and sellers. 
D)  the place where transactions occur but not the people involved. 
A)  buyers only. 
B)  sellers only. 
C)  both buyers and sellers. 
D)  the place where transactions occur but not the people involved.

Question 18

A rightward shift of a demand curve is called an)

Accepted Answer

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

Question 19

When all market participants are price takers who have no influence over prices, the markets have

Accepted Answer

A)  only a few buyers and sellers. 
B)  numerous sellers but only a few buyers. 
C)  numerous buyers but only a few sellers. 
D)  numerous buyers and sellers. 
A)  only a few buyers and sellers. 
B)  numerous sellers but only a few buyers. 
C)  numerous buyers but only a few sellers. 
D)  numerous buyers and sellers.

Question 20

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Accepted Answer

A) True 
 B)False

Which of the following events must cause equilibrium quantity to rise?

In a perfectly competitive market, buyers and sellers are price setters.

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

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

A decrease in quantity demanded

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

The law of supply states that, other things equal, when the price of a good

Assume a market is perfectly competitive. When a new producer enters the market, the

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

A market includes

A rightward shift of a demand curve is called an)

When all market participants are price takers who have no influence over prices, the markets have

In a perfectly competitive market, the goods offered for sale are all exactly the same.

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

Which of the following events must cause equilibrium quantity to rise?

In a perfectly competitive market, buyers and sellers are price setters.

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

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

A decrease in quantity demanded

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés are a normal good?

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

The law of supply states that, other things equal, when the price of a good

Assume a market is perfectly competitive. When a new producer enters the market, the

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

A market includes

A rightward shift of a demand curve is called an)

When all market participants are price takers who have no influence over prices, the markets have

In a perfectly competitive market, the goods offered for sale are all exactly the same.

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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