Question 1

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
  
-Refer to Table 4-13. Suppose x = 1. Then it must be true that

Accepted Answer

A)  Harry and Jake have the same income, which is lower than Darby's income. 
B)  if sandwiches and potato chips are complements for Harry, then those two goods are also complements for Jake. 
C)  Harry's demand curve is identical to Jake's demand curve. 
D)  All of the above are correct. 
A)  Harry and Jake have the same income, which is lower than Darby's income. 
B)  if sandwiches and potato chips are complements for Harry, then those two goods are also complements for Jake. 
C)  Harry's demand curve is identical to Jake's demand curve. 
D)  All of the above are correct.

Question 2

Figure 4-16  
-Refer to Figure 4-16. The shift from S to S' could be caused by an

Accepted Answer

A)  increase in the price of the good. 
B)  improvement in production technology. 
C)  increase in income. 
D)  increase in input prices. 
A)  increase in the price of the good. 
B)  improvement in production technology. 
C)  increase in income. 
D)  increase in input prices.

Question 3

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Accepted Answer

The answer of Since individual buyers and individual sellers in...

Question 4

Table 4-16
The following table shows the supply and demand schedules in a market.
  
-Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

Accepted Answer

The price

Question 5

All goods and services are sold in perfectly competitive markets.

Accepted Answer

A) True 
 B)False

Question 6

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase. 
A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase.

Question 7

Which of the following demonstrates the law of demand?

Accepted Answer

A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. 
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. 
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. 
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way. 
A)  After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise. 
B)  Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal. 
C)  Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal. 
D)  Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

Question 8

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

Accepted Answer

A) True 
 B)False

Question 9

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

Accepted Answer

A)  an increase in demand for brown rice and a decrease in demand for white rice. 
B)  a decrease in demand for brown rice and an increase in demand for white rice. 
C)  an increase in demand for both brown and white rice. 
D)  no change in demand for either type of rice because weight loss is not a determinant of demand. 
A)  an increase in demand for brown rice and a decrease in demand for white rice. 
B)  a decrease in demand for brown rice and an increase in demand for white rice. 
C)  an increase in demand for both brown and white rice. 
D)  no change in demand for either type of rice because weight loss is not a determinant of demand.

Question 10

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Accepted Answer

A) True 
 B)False

Question 11

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 falls?

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 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

Which of the following is not a reason perfect competition is a useful simplification, despite the diversity of market types we find in the world?

Accepted Answer

A)  Perfectly competitive markets are the easiest to analyze because everyone participating in the market takes the price as given by market conditions. 
B)  Some degree of competition is present in most markets. 
C)  There are many buyers and many sellers in all types of markets. 
D)  Many of the lessons that we learn by studying supply and demand under perfect competition apply in more complicated markets as well. 
A)  Perfectly competitive markets are the easiest to analyze because everyone participating in the market takes the price as given by market conditions. 
B)  Some degree of competition is present in most markets. 
C)  There are many buyers and many sellers in all types of markets. 
D)  Many of the lessons that we learn by studying supply and demand under perfect competition apply in more complicated markets as well.

Question 14

Figure 4-19  
-Refer to Figure 4-19. If there is currently a shortage of 20 units of the good, then the law of

Accepted Answer

A)  demand predicts that the price will rise by $2 to eliminate the shortage. 
B)  supply predicts that the price will rise by $2 to eliminate the shortage. 
C)  supply and demand predicts that the price will rise by $2 to eliminate the shortage. 
D)  supply and demand predicts that the price will fall by $2 to eliminate the shortage. 
A)  demand predicts that the price will rise by $2 to eliminate the shortage. 
B)  supply predicts that the price will rise by $2 to eliminate the shortage. 
C)  supply and demand predicts that the price will rise by $2 to eliminate the shortage. 
D)  supply and demand predicts that the price will fall by $2 to eliminate the shortage.

Question 15

Figure 4-27
Panel a) Panel b)
     Panel c) Panel d)
    
-Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

Accepted Answer

A)  Panel a) 
B)  Panel b) 
C)  Panel c) 
D)  Panel d) 
A)  Panel a) 
B)  Panel b) 
C)  Panel c) 
D)  Panel d)

Question 16

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Accepted Answer

A)  increases. 
B)  decreases. 
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)  increases. 
B)  decreases. 
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 17

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

Accepted Answer

A)  price-quantity schedule. 
B)  buyer schedule. 
C)  demand schedule. 
D)  demand curve. 
A)  price-quantity schedule. 
B)  buyer schedule. 
C)  demand schedule. 
D)  demand curve.

Question 18

If buyers and sellers in a certain market are price takers, then individually

Accepted Answer

A)  they have no influence on market price. 
B)  they have some influence on market price but that influence is limited. 
C)  buyers will be able to find prices lower than those determined in the market. 
D)  sellers will find it difficult to sell all they want to sell at the market price. 
A)  they have no influence on market price. 
B)  they have some influence on market price but that influence is limited. 
C)  buyers will be able to find prices lower than those determined in the market. 
D)  sellers will find it difficult to sell all they want to sell at the market price.

Question 19

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-14  
-Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

Accepted Answer

A)  There is an improvement in the technology used to produce this good. 
B)  The cost of an input to the production of this good increases. 
C)  This good becomes very popular. 
D)  The price of a substitute good decreases. 
A)  There is an improvement in the technology used to produce this good. 
B)  The cost of an input to the production of this good increases. 
C)  This good becomes very popular. 
D)  The price of a substitute good decreases.

Exam 4: The Market Forces of Supply and Demand

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then it must be true that

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

All goods and services are sold in perfectly competitive markets.

The quantity demanded of a good is the amount that buyers are

Which of the following demonstrates the law of demand?

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain, then we likely would see

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

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 falls?

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

Which of the following is not a reason perfect competition is a useful simplification, despite the diversity of market types we find in the world?

Figure 4-19 -Refer to Figure 4-19. If there is currently a shortage of 20 units of the good, then the law of

Figure 4-27 Panel a) Panel b) Panel c) Panel d) -Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

A table that shows the relationship between the price of a good and the quantity demanded of that good is called a

If buyers and sellers in a certain market are price takers, then individually

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Figure 4-14 -Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

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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