Question 1

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Accepted Answer

The curren

Question 2

Table 4-3  
-Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

Accepted Answer

A)  decreases by 1.75 units. 
B)  increases by 2 units. 
C)  decreases by 7 units. 
D)  decreases by 24 units. 
A)  decreases by 1.75 units. 
B)  increases by 2 units. 
C)  decreases by 7 units. 
D)  decreases by 24 units.

Question 3

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

Accepted Answer

A)  The demand for gasoline will increase. 
B)  The demand for gasoline will decrease. 
C)  The demand for gasoline will be unaffected. 
D)  The supply of gasoline will increase. 
A)  The demand for gasoline will increase. 
B)  The demand for gasoline will decrease. 
C)  The demand for gasoline will be unaffected. 
D)  The supply of gasoline will increase.

Question 4

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)  decreases, and the supply of tires increases. 
B)  is unaffected, and the supply of tires decreases. 
C)  is unaffected, and the supply of tires increases. 
D)  None of the above is necessarily correct. 
A)  decreases, and the supply of tires increases. 
B)  is unaffected, and the supply of tires decreases. 
C)  is unaffected, and the supply of tires increases. 
D)  None of the above is necessarily correct.

Question 5

According to the law of demand, when price increases the quantity demanded of a good

Accepted Answer

The answer of According to the law of demand, when...

Question 6

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 butter?

Accepted Answer

A)  a decrease in the price of butter 
B)  an increase in the price of margarine 
C)  an increase in the price of milk 
D)  an improvement in technology that allows firms to use less labor in the production of butter 
A)  a decrease in the price of butter 
B)  an increase in the price of margarine 
C)  an increase in the price of milk 
D)  an improvement in technology that allows firms to use less labor in the production of butter

Question 7

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Accepted Answer

A)  The Green Bay Packers make it to the Super Bowl. 
B)  The price of the jerseys increases by $15. 
C)  The technology of sewing machines use to make the jerseys improves. 
D)  The cost of the fabric used to make the jerseys increases. 
A)  The Green Bay Packers make it to the Super Bowl. 
B)  The price of the jerseys increases by $15. 
C)  The technology of sewing machines use to make the jerseys improves. 
D)  The cost of the fabric used to make the jerseys increases.

Question 8

The supply curve for stand up paddle boards

Accepted Answer

A)  shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. 
B)  shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph. 
C)  does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. 
D)  does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph. 
A)  shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. 
B)  shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph. 
C)  does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. 
D)  does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph.

Question 9

If the number of sellers in a market increases, then the

Accepted Answer

A)  demand in that market will increase. 
B)  supply in that market will increase. 
C)  supply in that market will decrease. 
D)  demand in that market will decrease. 
A)  demand in that market will increase. 
B)  supply in that market will increase. 
C)  supply in that market will decrease. 
D)  demand in that market will decrease.

Question 10

An early frost in the vineyards of Napa Valley would cause a(n)

Accepted Answer

A)  increase in the demand for wine, increasing price. 
B)  increase in the supply of wine, decreasing price. 
C)  decrease in the demand for wine, decreasing price. 
D)  decrease in the supply of wine, increasing price. 
A)  increase in the demand for wine, increasing price. 
B)  increase in the supply of wine, decreasing price. 
C)  decrease in the demand for wine, decreasing price. 
D)  decrease in the supply of wine, increasing price.

Question 11

Table 4-8  
-Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Accepted Answer

A)  6 units. 
B)  12 units. 
C)  18 units. 
D)  24 units. 
A)  6 units. 
B)  12 units. 
C)  18 units. 
D)  24 units.

Question 12

Which of the following events must result in a higher price in the market for cigars?

Accepted Answer

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

Question 13

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)  demand for gasoline 
B)  price of gasoline 
C)  number of producers of gasoline 
D)  price of oil, an input into the production of gasoline 
A)  demand for gasoline 
B)  price of gasoline 
C)  number of producers of gasoline 
D)  price of oil, an input into the production of gasoline

Question 14

Figure 4-21  
-Refer to Figure 4-21. What is the equilibrium quantity in this market?

Accepted Answer

A)  2.5 units 
B)  5 units 
C)  7.5 units 
D)  10 units 
A)  2.5 units 
B)  5 units 
C)  7.5 units 
D)  10 units

Question 15

Figure 4-26  
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

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 16

Equilibrium quantity must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
A)  increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease. 
B)  increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
C)  decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease. 
D)  decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

Question 17

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Accepted Answer

The equilibrium pric

Question 18

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 19

If macaroni and cheese is an inferior good, then an increase in

Accepted Answer

A)  the price will cause the demand curve for macaroni and cheese to shift to the left. 
B)  the price will cause the demand curve for macaroni and cheese to shift to the right. 
C)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. 
D)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the right. 
A)  the price will cause the demand curve for macaroni and cheese to shift to the left. 
B)  the price will cause the demand curve for macaroni and cheese to shift to the right. 
C)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. 
D)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.

Question 20

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

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

According to the law of demand, when price increases the quantity demanded of a good

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 butter?

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

The supply curve for stand up paddle boards

If the number of sellers in a market increases, then the

An early frost in the vineyards of Napa Valley would cause a(n)

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Which of the following events must result in a higher price in the market for cigars?

An increase in which of the following would shift the supply curve for gasoline to the right?

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

Equilibrium quantity must decrease when demand

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

A surplus is the same as an excess demand.

If macaroni and cheese is an inferior good, then an increase in

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

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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