Question 1

Holding the nonprice determinants of demand constant, a change in price would

Accepted Answer

A)  result in either a decrease in demand or an increase in demand. 
B)  result in a movement along a stationary demand curve. 
C)  result in a shift of supply. 
D)  have no effect on the quantity demanded. 
A)  result in either a decrease in demand or an increase in demand. 
B)  result in a movement along a stationary demand curve. 
C)  result in a shift of supply. 
D)  have no effect on the quantity demanded.

Question 2

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Accepted Answer

A)  The number of sellers of mangos decreases. 
B)  There is an advance in technology that reduces the cost of producing mangos. 
C)  The price of mangos falls. 
D)  The price of fertilizer increases, and fertilizer is an input in the production of mangos. 
A)  The number of sellers of mangos decreases. 
B)  There is an advance in technology that reduces the cost of producing mangos. 
C)  The price of mangos falls. 
D)  The price of fertilizer increases, and fertilizer is an input in the production of mangos.

Question 3

If the number of sellers in a market increases, then the

Accepted Answer

A)  demand in that market will increase. 
B)  supply in that market will increase. 
C)  supply in that market will decrease. 
D)  demand in that market will decrease. 
A)  demand in that market will increase. 
B)  supply in that market will increase. 
C)  supply in that market will decrease. 
D)  demand in that market will decrease.

Question 4

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Accepted Answer

A)  total demand 
B)  market demand 
C)  equilibrium demand 
D)  aggregate demand 
A)  total demand 
B)  market demand 
C)  equilibrium demand 
D)  aggregate demand

Question 5

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 6

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of a highly organized market?

Accepted Answer

A)  the market for textbooks 
B)  the market for spa services 
C)  the market for soybeans 
D)  the market for ice cream 
A)  the market for textbooks 
B)  the market for spa services 
C)  the market for soybeans 
D)  the market for ice cream

Question 8

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 $15 is

Accepted Answer

A)  0 units. 
B)  10 units. 
C)  15 units. 
D)  25 units. 
A)  0 units. 
B)  10 units. 
C)  15 units. 
D)  25 units.

Question 9

The line that relates the price of a good and the quantity demanded of that good is called the demand

Accepted Answer

A)  schedule, and it usually slopes upward. 
B)  schedule, and it usually slopes downward. 
C)  curve, and it usually slopes upward. 
D)  curve, and it usually slopes downward. 
A)  schedule, and it usually slopes upward. 
B)  schedule, and it usually slopes downward. 
C)  curve, and it usually slopes upward. 
D)  curve, and it usually slopes downward.

Question 10

When the price of a good or service changes,

Accepted Answer

A)  the demand curve shifts in the opposite direction. 
B)  the supply curve shifts in the opposite direction. 
C)  the supply curve shifts in the same direction. 
D)  there is a movement along a given supply curve. 
A)  the demand curve shifts in the opposite direction. 
B)  the supply curve shifts in the opposite direction. 
C)  the supply curve shifts in the same direction. 
D)  there is a movement along a given supply curve.

Question 11

Figure 4-20  
-Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

Accepted Answer

A)  500 units and 500 units. 
B)  500 units and 800 units. 
C)  600 units and 600 units. 
D)  800 units and 500 units. 
A)  500 units and 500 units. 
B)  500 units and 800 units. 
C)  600 units and 600 units. 
D)  800 units and 500 units.

Question 12

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is correct?

Accepted Answer

A)  Buyers determine supply, and sellers determine demand. 
B)  Buyers determine demand, and sellers determine supply. 
C)  Buyers determine both demand and supply. 
D)  Sellers determine both demand and supply. 
A)  Buyers determine supply, and sellers determine demand. 
B)  Buyers determine demand, and sellers determine supply. 
C)  Buyers determine both demand and supply. 
D)  Sellers determine both demand and supply.

Question 14

Figure 4-20  
-Refer to Figure 4-20. If the price is $25, then there would be an excess

Accepted Answer

A)  supply of 100 units, and price would fall. 
B)  supply of 300 units, and price would fall. 
C)  demand of 100 units, and price would fall. 
D)  demand of 300 units, and price would fall. 
A)  supply of 100 units, and price would fall. 
B)  supply of 300 units, and price would fall. 
C)  demand of 100 units, and price would fall. 
D)  demand of 300 units, and price would fall.

Question 15

You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

Accepted Answer

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

Question 16

The market demand curve

Accepted Answer

A)  is found by vertically adding the individual demand curves. 
B)  slopes upward. 
C)  represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D)  represents the sum of the quantities demanded by all the buyers at each price of the good. 
A)  is found by vertically adding the individual demand curves. 
B)  slopes upward. 
C)  represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. 
D)  represents the sum of the quantities demanded by all the buyers at each price of the good.

Question 17

Figure 4-13  
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

Accepted Answer

A)  8 units. 
B)  16 units. 
C)  24 units. 
D)  32 units. 
A)  8 units. 
B)  16 units. 
C)  24 units. 
D)  32 units.

Question 18

Figure 4-29  
-Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Accepted Answer

The answer of Figure 4-29  
-Refer to Figure 4-29....

Question 19

Figure 4-31
Consider the market for 2-packs of light bulbs below.  
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a

Question 20

Figure 4-24
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-24. All else equal, buyers expecting turkey to be more expensive 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.

Exam 4: The Market Forces of Supply and Demand

Holding the nonprice determinants of demand constant, a change in price would

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

If the number of sellers in a market increases, then the

Which of the following is not an expression for the sum of all the individual demand curves for a product?

A supply schedule is a table that shows the relationship between

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Which of the following is an example of a highly organized market?

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 $15 is

The line that relates the price of a good and the quantity demanded of that good is called the demand

When the price of a good or service changes,

Figure 4-20 -Refer to Figure 4-20. If price is $25, then quantity demanded and quantity supplied, respectively, are

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

Which of the following statements is correct?

Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

The market demand curve

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $8 is

Figure 4-29 -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, buyers expecting turkey to be more expensive in the future would cause a current move from

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

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