Question 1

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Accepted Answer

A)  The demand for shotgun-shell ammunition will increase. 
B)  The demand for shotgun-shell ammunition will decrease. 
C)  The demand for shotgun-shell ammunition will be unaffected. 
D)  The supply of shotgun-shell ammunition will increase. 
A)  The demand for shotgun-shell ammunition will increase. 
B)  The demand for shotgun-shell ammunition will decrease. 
C)  The demand for shotgun-shell ammunition will be unaffected. 
D)  The supply of shotgun-shell ammunition will increase.

Question 2

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A)  the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. 
B)  the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. 
C)  there is a surplus of blue jeans at the $30 price. 
D)  All of the above are correct. 
A)  the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. 
B)  the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. 
C)  there is a surplus of blue jeans at the $30 price. 
D)  All of the above are correct.

Question 3

The following table contains a supply schedule for a good.   If the law of supply applies to this good, then Q1 could be

Accepted Answer

A)  0. 
B)  50. 
C)  100. 
D)  150. 
A)  0. 
B)  50. 
C)  100. 
D)  150.

Question 4

Which of the following would cause price to decrease?

Accepted Answer

A)  a decrease in supply 
B)  an increase in demand 
C)  a surplus of the good 
D)  a shortage of the good 
A)  a decrease in supply 
B)  an increase in demand 
C)  a surplus of the good 
D)  a shortage of the good

Question 5

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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 6

Today, people changed their expectations about the future. This change

Accepted Answer

A)  can cause a movement along a demand curve. 
B)  can affect future demand but not today's demand. 
C)  can affect today's demand. 
D)  cannot affect either today's demand or future demand. 
A)  can cause a movement along a demand curve. 
B)  can affect future demand but not today's demand. 
C)  can affect today's demand. 
D)  cannot affect either today's demand or future demand.

Question 7

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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 8

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 9

Figure 4-16  
-Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

Accepted Answer

A)  increase in the price of peaches. 
B)  decrease in the price of pears. 
C)  increase in income. 
D)  decrease in the labor costs of the workers who pick peaches. 
A)  increase in the price of peaches. 
B)  decrease in the price of pears. 
C)  increase in income. 
D)  decrease in the labor costs of the workers who pick peaches.

Question 10

Figure 4-27
Panel (a) Panel (b)     Panel (c) Panel (d)    
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?

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 11

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased?

Accepted Answer

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

Question 12

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.   If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)  0. 
B)  15. 
C)  25. 
D)  30. 
A)  0. 
B)  15. 
C)  25. 
D)  30.

Question 13

Table 4-11  
-Refer to Table 4-11. If the price were $8, a

Accepted Answer

A)  shortage of 20 units would exist, and price would tend to rise. 
B)  surplus of 25 units would exist, and price would tend to fall. 
C)  shortage of 25 units would exist, and price would tend to rise. 
D)  surplus of 45 units would exist, and price would tend to fall. 
A)  shortage of 20 units would exist, and price would tend to rise. 
B)  surplus of 25 units would exist, and price would tend to fall. 
C)  shortage of 25 units would exist, and price would tend to rise. 
D)  surplus of 45 units would exist, and price would tend to fall.

Question 14

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct. 
A)  is referred to as the law of supply. 
B)  applies only to a few goods in the economy. 
C)  is represented by a downward-sloping supply curve. 
D)  All of the above are correct.

Question 15

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. 
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. 
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. 
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

Question 16

When the price of a good or service changes,

Accepted Answer

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

Question 17

Figure 4-24
The diagram below pertains to the demand for turkey in the United States.  
-Refer to Figure 4-24. All else equal, a sale on chicken 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 18

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 19

Once the supply curve for a product or service is drawn, it

Accepted Answer

A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time. 
A)  remains stable over time. 
B)  can shift either rightward or leftward. 
C)  is possible to move along the curve, but the curve will not shift. 
D)  tends to become steeper over time.

Question 20

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

The following table contains a supply schedule for a good. If the law of supply applies to this good, then Q1 could be

Which of the following would cause price to decrease?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Today, people changed their expectations about the future. This change

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Table 4-11 -Refer to Table 4-11. If the price were $8, a

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

When the price of a good or service changes,

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

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

Once the supply curve for a product or service is drawn, it

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

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 Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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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