Question 1

Figure 4-28  
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

Accepted Answer

The answer of Figure 4-28  
-Refer to Figure 4-28....

Question 2

A newspaper's classified ads are an example of a market.

Accepted Answer

A) True 
 B)False

Question 3

A likely example of complementary goods for most people would be

Accepted Answer

A)  canoes and paddles. 
B)  snow mobiles and sofas. 
C)  coffee and tea. 
D)  tennis balls and basketballs. 
A)  canoes and paddles. 
B)  snow mobiles and sofas. 
C)  coffee and tea. 
D)  tennis balls and basketballs.

Question 4

Who gets scarce resources in a market economy?

Accepted Answer

A)  the government 
B)  whoever the government decides gets them 
C)  whoever wants them 
D)  whoever is willing and able to pay the price 
A)  the government 
B)  whoever the government decides gets them 
C)  whoever wants them 
D)  whoever is willing and able to pay the price

Question 5

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 7

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.  
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of x must be

Accepted Answer

A)  less than or equal to 5. 
B)  greater than or equal to 5. 
C)  greater than or equal to 7. 
D)  greater than or equal to 10. 
A)  less than or equal to 5. 
B)  greater than or equal to 5. 
C)  greater than or equal to 7. 
D)  greater than or equal to 10.

Question 8

The two words most often used by economists are

Accepted Answer

A)  prices and quantities. 
B)  resources and allocation. 
C)  supply and demand. 
D)  efficiency and equity. 
A)  prices and quantities. 
B)  resources and allocation. 
C)  supply and demand. 
D)  efficiency and equity.

Question 9

When all market participants are price takers who have no influence over prices, the markets have

Accepted Answer

A)  only a few buyers and sellers. 
B)  numerous sellers but only a few buyers. 
C)  numerous buyers but only a few sellers. 
D)  numerous buyers and sellers. 
A)  only a few buyers and sellers. 
B)  numerous sellers but only a few buyers. 
C)  numerous buyers but only a few sellers. 
D)  numerous buyers and sellers.

Question 10

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices.  
-Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

Accepted Answer

A)  market quantity demanded decreases by 10. 
B)  market quantity demanded increases by 10. 
C)  Adams family increases its quantity demanded by more than the Smith family. 
D)  Jones family increases its quantity demanded by more than the Williams family. 
A)  market quantity demanded decreases by 10. 
B)  market quantity demanded increases by 10. 
C)  Adams family increases its quantity demanded by more than the Smith family. 
D)  Jones family increases its quantity demanded by more than the Williams family.

Question 11

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

Accepted Answer

The demand

Question 12

A higher price for batteries would result in a(n)

Accepted Answer

A)  increase in the demand for flashlights. 
B)  decrease in the demand for flashlights. 
C)  increase in the demand for batteries. 
D)  decrease in the demand for batteries. 
A)  increase in the demand for flashlights. 
B)  decrease in the demand for flashlights. 
C)  increase in the demand for batteries. 
D)  decrease in the demand for batteries.

Question 13

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Accepted Answer

A) True 
 B)False

Question 14

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 15

If something happens to alter the quantity supplied at any given price, then

Accepted Answer

A)  we move along the supply curve. 
B)  the supply curve shifts. 
C)  the supply curve becomes steeper. 
D)  the supply curve becomes flatter. 
A)  we move along the supply curve. 
B)  the supply curve shifts. 
C)  the supply curve becomes steeper. 
D)  the supply curve becomes flatter.

Question 16

The law of demand states that, other things equal, an increase in

Accepted Answer

A)  price causes quantity demanded to increase. 
B)  price causes quantity demanded to decrease. 
C)  quantity demanded causes price to increase. 
D)  quantity demanded causes price to decrease. 
A)  price causes quantity demanded to increase. 
B)  price causes quantity demanded to decrease. 
C)  quantity demanded causes price to increase. 
D)  quantity demanded causes price to decrease.

Question 17

If a shortage exists in a market, then we know that the actual price is

Accepted Answer

A)  above the equilibrium price, and quantity supplied is greater than quantity demanded. 
B)  above the equilibrium price, and quantity demanded is greater than quantity supplied. 
C)  below the equilibrium price, and quantity demanded is greater than quantity supplied. 
D)  below the equilibrium price, and quantity supplied is greater than quantity demanded. 
A)  above the equilibrium price, and quantity supplied is greater than quantity demanded. 
B)  above the equilibrium price, and quantity demanded is greater than quantity supplied. 
C)  below the equilibrium price, and quantity demanded is greater than quantity supplied. 
D)  below the equilibrium price, and quantity supplied is greater than quantity demanded.

Question 18

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 19

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-15  
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Accepted Answer

A)  a decrease in the price of beer 
B)  an expectation by firms that the price of beer will increase in the very near future 
C)  a decrease in the price of hops 
D)  an improvement in technology that allows firms to use less labor in the production of beer 
A)  a decrease in the price of beer 
B)  an expectation by firms that the price of beer will increase in the very near future 
C)  a decrease in the price of hops 
D)  an improvement in technology that allows firms to use less labor in the production of beer

Exam 4: The Market Forces of Supply and Demand

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of this good increases.

A newspaper's classified ads are an example of a market.

A likely example of complementary goods for most people would be

Who gets scarce resources in a market economy?

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches and that the market demand violates the law of demand. Then, in the table, the value of x must be

The two words most often used by economists are

When all market participants are price takers who have no influence over prices, the markets have

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

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

A higher price for batteries would result in a(n)

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

When the market price is above the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

If something happens to alter the quantity supplied at any given price, then

The law of demand states that, other things equal, an increase in

If a shortage exists in a market, then we know that the actual price is

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?

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

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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