Question 1

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 2

Figure 4-19  
-Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)  $10 and 30 units. 
B)  $10 and 50 units. 
C)  $10 and 70 units. 
D)  $4 and 50 units. 
A)  $10 and 30 units. 
B)  $10 and 50 units. 
C)  $10 and 70 units. 
D)  $4 and 50 units.

Question 3

Figure 4-24
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a 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 4

An increase in quantity supplied

Accepted Answer

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

Question 5

Table 4-2
  
-Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

Accepted Answer

A)  increases by 0.75 units. 
B)  increases by 3 units. 
C)  increases by 4 units. 
D)  decreases by 27 units. 
A)  increases by 0.75 units. 
B)  increases by 3 units. 
C)  increases by 4 units. 
D)  decreases by 27 units.

Question 6

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Accepted Answer

The demand

Question 7

Equilibrium price must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. 
B)  increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. 
D)  decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously. 
A)  increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. 
B)  increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. 
D)  decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.

Question 8

Figure 4-9
Panel a) Panel b)
    
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel b), the arrows are consistent with which of the following events?

Accepted Answer

A)  an increase in the price of cigarettes 
B)  placing a tax on cigarettes 
C)  the prohibition of cigarette advertisements on television 
D)  decreasing the price of marijuana, given that tobacco and marijuana are complements 
A)  an increase in the price of cigarettes 
B)  placing a tax on cigarettes 
C)  the prohibition of cigarette advertisements on television 
D)  decreasing the price of marijuana, given that tobacco and marijuana are complements

Question 9

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Accepted Answer

A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D 
A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D

Question 10

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 11

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

Accepted Answer

A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D 
A)  Point A to Point B 
B)  Point C to Point B 
C)  Point C to Point D 
D)  Point A to Point D

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

Good X and good Y are substitutes. If the price of good Y increases, then the

Accepted Answer

A)  demand for good X will decrease. 
B)  quantity demanded of good X will decrease. 
C)  demand for good X will increase. 
D)  quantity demanded of good X will increase. 
A)  demand for good X will decrease. 
B)  quantity demanded of good X will decrease. 
C)  demand for good X will increase. 
D)  quantity demanded of good X will increase.

Question 14

Table 4-1
  
-Refer to Table 4-1. Which of the following illustrates the market demand curve?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 15

In a competitive market, there are so few buyers and so few sellers that each has a significant impact on the market price.

Accepted Answer

A) True 
 B)False

Question 16

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 17

For the general population, a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)  1 percent reduction in the quantity demanded of cigarettes. 
B)  4 percent reduction in the quantity demanded of cigarettes. 
C)  10 percent reduction in the quantity demanded of cigarettes. 
D)  12 percent reduction in the quantity demanded of cigarettes. 
A)  1 percent reduction in the quantity demanded of cigarettes. 
B)  4 percent reduction in the quantity demanded of cigarettes. 
C)  10 percent reduction in the quantity demanded of cigarettes. 
D)  12 percent reduction in the quantity demanded of cigarettes.

Question 18

Figure 4-27
Panel a) Panel b)
     Panel c) Panel d)
    
-Refer to Figure 4-27. Panel b) shows which of the following?

Accepted Answer

A)  a decrease in demand and a decrease in quantity supplied 
B)  a decrease in demand and a decrease in supply 
C)  a decrease in quantity demanded and a decrease in quantity supplied 
D)  a decrease in quantity demanded and a decrease in supply 
A)  a decrease in demand and a decrease in quantity supplied 
B)  a decrease in demand and a decrease in supply 
C)  a decrease in quantity demanded and a decrease in quantity supplied 
D)  a decrease in quantity demanded and a decrease in supply

Question 19

Figure 4-3
Consumer 1 Consumer 2
    
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Accepted Answer

A)  0 units. 
B)  5 units. 
C)  8.33 units. 
D)  25 units. 
A)  0 units. 
B)  5 units. 
C)  8.33 units. 
D)  25 units.

Question 20

Which of the following is not a determinant of demand?

Accepted Answer

A)  the price of a resource that is used to produce the good 
B)  the price of a complementary good 
C)  the price of the good next month 
D)  the price of a substitute good 
A)  the price of a resource that is used to produce the good 
B)  the price of a complementary good 
C)  the price of the good next month 
D)  the price of a substitute good

Exam 4: The Market Forces of Supply and Demand

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

Figure 4-19 -Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from

An increase in quantity supplied

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?

Equilibrium price must decrease when demand

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel b), the arrows are consistent with which of the following events?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

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?

Good X and good Y are substitutes. If the price of good Y increases, then the

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

In a competitive market, there are so few buyers and so few sellers that each has a significant impact on the market price.

An increase in the price of a substitute good will shift the demand curve for a good to the right.

For the general population, a 10 percent increase in the price of cigarettes leads to a

Figure 4-27 Panel a) Panel b) Panel c) Panel d) -Refer to Figure 4-27. Panel b) shows which of the following?

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Which of the following is not a determinant of demand?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters