Question 1

When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 2

The demand curve for coffee shifts

Accepted Answer

A)  only when income changes. 
B)  when a determinant of the demand for coffee other than the price of coffee changes. 
C)  when the price of coffee changes. 
D)  Both b and c are correct. 
A)  only when income changes. 
B)  when a determinant of the demand for coffee other than the price of coffee changes. 
C)  when the price of coffee changes. 
D)  Both b and c are correct.

Question 3

Figure 4-2  
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Accepted Answer

A)  0 units. 
B)  2 units. 
C)  4 units. 
D)  6 units. 
A)  0 units. 
B)  2 units. 
C)  4 units. 
D)  6 units.

Question 4

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

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 5

Table 4-4  
-Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

Accepted Answer

A)  4 units. 
B)  6 units. 
C)  8 units. 
D)  10 units. 
A)  4 units. 
B)  6 units. 
C)  8 units. 
D)  10 units.

Question 6

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. Also suppose the following: • x = 2.
-The current price of a sandwich is $3.00.
-The market quantity supplied of sandwiches is 5.
-The slope of the supply curve is 1.
Then there is currently a

Accepted Answer

A)  shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
B)  shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00. 
C)  surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
D)  surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00. 
A)  shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
B)  shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00. 
C)  surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00. 
D)  surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following events must result in a lower price in the market for Snickers?

Accepted Answer

A)  Demand for Snickers increases, and supply of Snickers decreases. 
B)  Demand for Snickers and supply of Snickers both decrease. 
C)  Demand for Snickers decreases, and supply of Snickers increases. 
D)  Demand for Snickers and supply of Snickers both increase 
A)  Demand for Snickers increases, and supply of Snickers decreases. 
B)  Demand for Snickers and supply of Snickers both decrease. 
C)  Demand for Snickers decreases, and supply of Snickers increases. 
D)  Demand for Snickers and supply of Snickers both increase

Question 9

Which of the following events could shift the demand curve for gasoline to the left?

Accepted Answer

A)  The income of gasoline buyers rises, and gasoline is a normal good. 
B)  The income of gasoline buyers falls, and gasoline is an inferior good. 
C)  Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars. 
D)  The price of gasoline rises. 
A)  The income of gasoline buyers rises, and gasoline is a normal good. 
B)  The income of gasoline buyers falls, and gasoline is an inferior good. 
C)  Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars. 
D)  The price of gasoline rises.

Question 10

Saddle shoes are not popular right now, so very few are being produced. If saddle shoes become popular, then how will this affect the market for saddle shoes?

Accepted Answer

A)  The supply curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
B)  The supply curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity. 
C)  The demand curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
D)  The demand curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity. 
A)  The supply curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
B)  The supply curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity. 
C)  The demand curve for saddle shoes will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity. 
D)  The demand curve for saddle shoes will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.

Question 11

Figure 4-10  
-Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Accepted Answer

A)  increase in the price. 
B)  decrease in the quantity supplied. 
C)  shift in the supply curve. 
D)  Both a and b are correct. 
A)  increase in the price. 
B)  decrease in the quantity supplied. 
C)  shift in the supply curve. 
D)  Both a and b are correct.

Question 12

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

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 13

Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a

Accepted Answer

A)  shortage to exist and the market price of chocolate-dipped strawberries to increase. 
B)  shortage to exist and the market price of chocolate-dipped strawberries to decrease. 
C)  surplus to exist and the market price of chocolate-dipped strawberries to increase. 
D)  surplus to exist and the market price of chocolate-dipped strawberries to decrease. 
A)  shortage to exist and the market price of chocolate-dipped strawberries to increase. 
B)  shortage to exist and the market price of chocolate-dipped strawberries to decrease. 
C)  surplus to exist and the market price of chocolate-dipped strawberries to increase. 
D)  surplus to exist and the market price of chocolate-dipped strawberries to decrease.

Question 14

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

Accepted Answer

A)  the CPA to supply more expert tax advice now than she was supplying previously. 
B)  the CPA to supply less expert tax advice now than she was supplying previously. 
C)  the demand for this CPA's expert tax advice to fall. 
D)  no change in the CPA's current supply; instead, future supply will be affected. 
A)  the CPA to supply more expert tax advice now than she was supplying previously. 
B)  the CPA to supply less expert tax advice now than she was supplying previously. 
C)  the demand for this CPA's expert tax advice to fall. 
D)  no change in the CPA's current supply; instead, future supply will be affected.

Question 15

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

Accepted Answer

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

Question 16

Which of the following is not a determinant of demand?

Accepted Answer

A)  the price of a resource that is used to produce the good 
B)  the price of a complementary good 
C)  the price of the good next month 
D)  the price of a substitute good 
A)  the price of a resource that is used to produce the good 
B)  the price of a complementary good 
C)  the price of the good next month 
D)  the price of a substitute good

Question 17

A market supply curve shows how the total quantity supplied of a good varies as

Accepted Answer

A)  production technology varies. 
B)  price varies. 
C)  input prices vary. 
D)  demand varies. 
A)  production technology varies. 
B)  price varies. 
C)  input prices vary. 
D)  demand varies.

Question 18

Figure 4-18  
-Refer to Figure 4-18. At what price would there be an excess supply of 200 units of the good?

Accepted Answer

A)  $15 
B)  $20 
C)  $30 
D)  $35 
A)  $15 
B)  $20 
C)  $30 
D)  $35

Question 19

Soup is an inferior good if the demand

Accepted Answer

A)  for soup falls when the price of a substitute for soup rises. 
B)  for soup rises when the price of soup falls. 
C)  curve for soup slopes upward. 
D)  for soup falls when income rises. 
A)  for soup falls when the price of a substitute for soup rises. 
B)  for soup rises when the price of soup falls. 
C)  curve for soup slopes upward. 
D)  for soup falls when income rises.

Question 20

Table 4-1  
-Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units. 
A)  2 units. 
B)  3 units. 
C)  4 units. 
D)  5 units.

Exam 4: The Market Forces of Supply and Demand

When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell.

The demand curve for coffee shifts

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for fences of a decrease in the price of wood?

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

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

Which of the following events must result in a lower price in the market for Snickers?

Which of the following events could shift the demand curve for gasoline to the left?

Saddle shoes are not popular right now, so very few are being produced. If saddle shoes become popular, then how will this affect the market for saddle shoes?

Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for convertible automobiles of an increase in the price of steel?

Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a

A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect

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

Which of the following is not a determinant of demand?

A market supply curve shows how the total quantity supplied of a good varies as

Figure 4-18 -Refer to Figure 4-18. At what price would there be an excess supply of 200 units of the good?

Soup is an inferior good if the demand

Table 4-1 -Refer to Table 4-1. If the market consists of Laura and Hillary only and the price falls by $1, the quantity demanded in the market increases by

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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