Question 1

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

Accepted Answer

The demand

Question 2

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 3

Figure 4-13  
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Accepted Answer

A)  4 units. 
B)  6 units. 
C)  12 units. 
D)  18 units. 
A)  4 units. 
B)  6 units. 
C)  12 units. 
D)  18 units.

Question 4

Figure 4-30  
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Accepted Answer

Supply shi

Question 5

Which of the following does not affect an individual's demand curve?

Accepted Answer

A)  expectations 
B)  income 
C)  prices of related goods 
D)  the number of buyers 
A)  expectations 
B)  income 
C)  prices of related goods 
D)  the number of buyers

Question 6

Figure 4-31
Consider the market for 2-packs of light bulbs below.  
-Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Accepted Answer

Equilibrium price de

Question 7

When quantity supplied increases at every possible price, we know that the supply curve has

Accepted Answer

A)  shifted to the left. 
B)  shifted to the right. 
C)  not shifted; rather, we have moved along the supply curve to a new point on the same curve. 
D)  not shifted; rather, the supply curve has become flatter. 
A)  shifted to the left. 
B)  shifted to the right. 
C)  not shifted; rather, we have moved along the supply curve to a new point on the same curve. 
D)  not shifted; rather, the supply curve has become flatter.

Question 8

A movement along the supply curve might be caused by a change in

Accepted Answer

A)  production technology. 
B)  input prices. 
C)  expectations about future prices. 
D)  the price of the good or service that is being supplied. 
A)  production technology. 
B)  input prices. 
C)  expectations about future prices. 
D)  the price of the good or service that is being supplied.

Question 9

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Accepted Answer

A) True 
 B)False

Question 10

If a seller in a competitive market chooses to charge more than the going price, then

Accepted Answer

A)  the sellers' profits must increase. 
B)  the owners of the raw materials used in production would raise the prices for the raw materials. 
C)  other sellers would also raise their prices. 
D)  buyers will make purchases from other sellers. 
A)  the sellers' profits must increase. 
B)  the owners of the raw materials used in production would raise the prices for the raw materials. 
C)  other sellers would also raise their prices. 
D)  buyers will make purchases from other sellers.

Question 11

Figure 4-20  
-Refer to Figure 4-20. If the price is $10, then there would be a

Accepted Answer

A)  shortage of 400 units, and price would rise. 
B)  surplus of 400 units, and price would rise. 
C)  shortage of 600 units, and price would rise. 
D)  surplus of 600 units, and price would rise. 
A)  shortage of 400 units, and price would rise. 
B)  surplus of 400 units, and price would rise. 
C)  shortage of 600 units, and price would rise. 
D)  surplus of 600 units, and price would rise.

Question 12

If the price of a good is low,

Accepted Answer

A)  firms would increase profit by increasing output. 
B)  the quantity supplied of the good could be zero. 
C)  the supply curve for the good will shift to the left. 
D)  firms can and should raise the price of the product. 
A)  firms would increase profit by increasing output. 
B)  the quantity supplied of the good could be zero. 
C)  the supply curve for the good will shift to the left. 
D)  firms can and should raise the price of the product.

Question 13

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Accepted Answer

A)  encourage marijuana use, and the evidence supports this argument. 
B)  encourage marijuana use, but the evidence does not support this argument. 
C)  discourage marijuana use, and the evidence supports this argument. 
D)  discourage marijuana use, but the evidence does not support this argument. 
A)  encourage marijuana use, and the evidence supports this argument. 
B)  encourage marijuana use, but the evidence does not support this argument. 
C)  discourage marijuana use, and the evidence supports this argument. 
D)  discourage marijuana use, but the evidence does not support this argument.

Question 14

Assume Leo buys coffee beans in a competitive market. It follows that

Accepted Answer

A)  Leo has a limited number of sellers from which to buy coffee beans. 
B)  Leo will negotiate with sellers whenever he buys coffee beans. 
C)  Leo cannot influence the price of coffee beans even if he buys a large quantity of them. 
D)  None of the above is correct. 
A)  Leo has a limited number of sellers from which to buy coffee beans. 
B)  Leo will negotiate with sellers whenever he buys coffee beans. 
C)  Leo cannot influence the price of coffee beans even if he buys a large quantity of them. 
D)  None of the above is correct.

Question 15

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-7  
-Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by a(n)

Accepted Answer

A)  decrease in the price of potato chips. 
B)  decrease in income, assuming that potato chips are a normal good. 
C)  announcement by the FDA that potato chips cause cancer. 
D)  increase in the price of a pretzels. 
A)  decrease in the price of potato chips. 
B)  decrease in income, assuming that potato chips are a normal good. 
C)  announcement by the FDA that potato chips cause cancer. 
D)  increase in the price of a pretzels.

Question 17

Holding the nonprice determinants of demand constant, a change in price would

Accepted Answer

A)  result in either a decrease in demand or an increase in demand. 
B)  result in a movement along a stationary demand curve. 
C)  result in a shift of supply. 
D)  have no effect on the quantity demanded. 
A)  result in either a decrease in demand or an increase in demand. 
B)  result in a movement along a stationary demand curve. 
C)  result in a shift of supply. 
D)  have no effect on the quantity demanded.

Question 18

The quantity demanded of a good is the amount that buyers are

Accepted Answer

A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase. 
A)  willing to purchase. 
B)  willing and able to purchase. 
C)  willing, able, and need to purchase. 
D)  able to purchase.

Question 19

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 20

Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the

Accepted Answer

A)  market demand curve. 
B)  market supply curve. 
C)  equilibrium curve. 
D)  surplus or shortage depending on market conditions. 
A)  market demand curve. 
B)  market supply curve. 
C)  equilibrium curve. 
D)  surplus or shortage depending on market conditions.

Exam 4: The Market Forces of Supply and Demand

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

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

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Which of the following does not affect an individual's demand curve?

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

When quantity supplied increases at every possible price, we know that the supply curve has

A movement along the supply curve might be caused by a change in

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

If a seller in a competitive market chooses to charge more than the going price, then

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a

If the price of a good is low,

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Assume Leo buys coffee beans in a competitive market. It follows that

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db in the market for potato chips could be caused by a(n)

Holding the nonprice determinants of demand constant, a change in price would

The quantity demanded of a good is the amount that buyers are

It is not possible for demand and supply to shift at the same time.

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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