Question 1

Figure 4-20  
-Refer to Figure 4-20. At a price of $15,

Accepted Answer

A)  quantity demanded exceeds quantity supplied. 
B)  there is a shortage. 
C)  there is an excess demand. 
D)  All of the above are correct. 
A)  quantity demanded exceeds quantity supplied. 
B)  there is a shortage. 
C)  there is an excess demand. 
D)  All of the above are correct.

Question 2

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Accepted Answer

The equilibrium quan

Question 3

Table 4-16
The following table shows the supply and demand schedules in a market.
  
-Refer to Table 4-16. What is the equilibrium price in this market?

Accepted Answer

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

Question 4

At the equilibrium price, quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-5  
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Accepted Answer

A)  a decrease in the price of mattresses 
B)  a decrease in the price of custom wooden sleigh bed frames 
C)  a change in consumer tastes away from wooden bedroom furniture 
D)  a decrease in the number of people in the United States 
A)  a decrease in the price of mattresses 
B)  a decrease in the price of custom wooden sleigh bed frames 
C)  a change in consumer tastes away from wooden bedroom furniture 
D)  a decrease in the number of people in the United States

Question 6

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Accepted Answer

A)  shift rightward. 
B)  shift leftward. 
C)  become flatter. 
D)  remain unchanged. 
A)  shift rightward. 
B)  shift leftward. 
C)  become flatter. 
D)  remain unchanged.

Question 7

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Accepted Answer

The answer of Fill in the table below, showing whether...

Question 8

Which of the following is not an example of a market?

Accepted Answer

A)  A small town has only one seller of electricity. 
B)  In the United States, a sick person cannot legally purchase a kidney. 
C)  In Florida, there are many buyers and sellers of key lime pie. 
D)  The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities. 
A)  A small town has only one seller of electricity. 
B)  In the United States, a sick person cannot legally purchase a kidney. 
C)  In Florida, there are many buyers and sellers of key lime pie. 
D)  The availability of Internet shopping has expanded the clothing choices for buyers who do not live near large cities.

Question 9

An increase in demand is represented by a

Accepted Answer

A)  movement downward and to the right along a demand curve. 
B)  movement upward and to the left along a demand curve. 
C)  rightward shift of a demand curve. 
D)  leftward shift of a demand curve. 
A)  movement downward and to the right along a demand curve. 
B)  movement upward and to the left along a demand curve. 
C)  rightward shift of a demand curve. 
D)  leftward shift of a demand curve.

Question 10

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 11

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Accepted Answer

The equilibrium quan

Question 12

A decrease in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  a decrease in the price of the good. 
B)  an increase in the price of the good. 
C)  an advance in production technology. 
D)  a decrease in input prices. 
A)  a decrease in the price of the good. 
B)  an increase in the price of the good. 
C)  an advance in production technology. 
D)  a decrease in input prices.

Question 14

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 supply curve shifts to   . What is the new equilibrium price and quantity in this market?

Accepted Answer

The new eq

Question 15

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 16

Surpluses drive price up, while shortages drive price down.

Accepted Answer

A) True 
 B)False

Question 17

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Accepted Answer

A)  Beef producers, concerned about the health of their customers, decided to produce relatively less beef. 
B)  Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef. 
C)  Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce. 
D)  Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace. 
A)  Beef producers, concerned about the health of their customers, decided to produce relatively less beef. 
B)  Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef. 
C)  Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce. 
D)  Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.

Question 18

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Accepted Answer

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

Question 19

"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." This relationship between price and quantity demanded is referred to as

Accepted Answer

A)  equilibrium. 
B)  the law of demand. 
C)  the relationship between supply and demand. 
D)  the definition of an inferior good. 
A)  equilibrium. 
B)  the law of demand. 
C)  the relationship between supply and demand. 
D)  the definition of an inferior good.

Question 20

Figure 4-7  
-Refer to Figure 4-7. The shift from Da to Db is called

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

Figure 4-20 -Refer to Figure 4-20. At a price of $15,

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

At the equilibrium price, quantity demanded is equal to quantity supplied.

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Which of the following is not an example of a market?

An increase in demand is represented by a

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

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

A decrease in demand shifts the demand curve to the left.

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

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

Surpluses drive price up, while shortages drive price down.

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

"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." This relationship between price and quantity demanded is referred to as

Figure 4-7 -Refer to Figure 4-7. The shift from Da to Db is called

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

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

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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