Question 1

A university's football stadium is never more than half-full during football games.This indicates

Accepted Answer

A) the ticket price is above the equilibrium price. 
B) the ticket price is below the equilibrium price. 
C) the ticket price is at the equilibrium price. 
D) nothing about the equilibrium price.

Question 2

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.

Question 3

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.

Question 4

Another term for equilibrium price is

Accepted Answer

A) dynamic price. 
B) market-clearing price. 
C) quantity-defining price. 
D) balance price.

Question 5

Figure 4-17 
-Refer to Figure 4-17.At a price of

Accepted Answer

A) $2,there is a surplus of 6 units. 
B) $5,there is a surplus of 25 units. 
C) $5,there is a shortage of $25. 
D) $7,there is a surplus of 4 units.

Question 6

Figure 4-27

-Refer to Figure 4-27.Panel (c)shows which of the following?

Accepted Answer

A) an increase in demand and an increase in quantity supplied 
B) an increase in demand and an increase in supply 
C) an increase in quantity demanded and an increase in quantity supplied 
D) an increase in quantity demanded and an increase in supply

Question 7

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. 
-Refer to Figure 4-25.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Accepted Answer

A) x to y. 
B) y to x. 
C) SA to SB. 
D) SB to SA.

Question 8

Figure 4-22 
-Refer to Figure 4-22.What is the equilibrium quantity in this market?

Accepted Answer

A) 4 units 
B) 8 units 
C) 12 units 
D) 16 units

Question 9

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.

Question 10

Which of the following events must cause equilibrium quantity to fall?

Accepted Answer

A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase

Question 11

Which of the following sets of events must cause an increase in the price of a new house?

Accepted Answer

A) higher wages for carpenters,higher wood prices,increases in consumer incomes,higher apartment rents,increases in population,and expectations of higher house prices in the future 
B) lower wages for carpenters,lower wood prices,increases in consumer incomes,higher apartment rents,increases in population and expectations of higher house prices in the future 
C) lower wages for carpenters,higher wood prices,decreases in consumer incomes,higher apartment rents,decreases in population and expectations of higher house prices in the future 
D) higher wages for carpenters,lower wood prices,decreases in consumer incomes,lower apartment rents,decreases in population and expectations of lower house prices in the future

Question 12

If a surplus 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.

Question 13

A shortage exists in a market if

Accepted Answer

A) there is an excess supply of the good. 
B) quantity supplied exceeds quantity demanded. 
C) the current price is below its equilibrium price. 
D) All of the above are correct.

Question 14

Figure 4-26 
-Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

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

Question 15

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24.All else equal,the premature deaths of thousands of turkeys would cause a move from

Accepted Answer

A) DA to DB. 
B) DB to DA. 
C) x to y. 
D) y to x.

Question 16

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

Accepted Answer

A) an increase in consumer income 
B) a decrease in consumer income 
C) greater government restrictions on agricultural chemicals 
D) fewer government restrictions on agricultural chemicals

Question 17

Figure 4-22 
-Refer to Figure 4-22.At a price of $12,there is a

Accepted Answer

A) surplus of 2 units. 
B) surplus of 4 units. 
C) shortage of 2 units. 
D) shortage of 4 units.

Question 18

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Accepted Answer

A) is greater than the quantity that sellers are willing and able to sell. 
B) exactly equals the quantity that sellers are willing and able to sell. 
C) is less than the quantity that sellers are willing and able to sell. 
D) Either a)or c)could be correct.

Question 19

Suppose buyers of coffee and sugar regard the two goods as complements.Then an increase in the price of coffee will cause a(n)

Accepted Answer

A) decrease in the demand for sugar and a decrease in the quantity supplied of sugar. 
B) decrease in the supply of sugar and a decrease in the quantity demanded of sugar. 
C) decrease in the equilibrium price of sugar and an increase in the equilibrium quantity of sugar. 
D) increase in the equilibrium price of sugar and a decrease in the equilibrium quantity of sugar.

Question 20

Figure 4-26 
-Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

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

Exam 4: The Market Forces of Supply and Demand: Supply and Demand Together

A university's football stadium is never more than half-full during football games.This indicates

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

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

Another term for equilibrium price is

Figure 4-17 -Refer to Figure 4-17.At a price of

Figure 4-27 -Refer to Figure 4-27.Panel (c) shows which of the following?

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Figure 4-22 -Refer to Figure 4-22.What is the equilibrium quantity in this market?

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

Which of the following events must cause equilibrium quantity to fall?

Which of the following sets of events must cause an increase in the price of a new house?

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

A shortage exists in a market if

Figure 4-26 -Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults,assuming that Ramen noodles are an inferior good?

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24.All else equal,the premature deaths of thousands of turkeys would cause a move from

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

Figure 4-22 -Refer to Figure 4-22.At a price of $12,there is a

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Suppose buyers of coffee and sugar regard the two goods as complements.Then an increase in the price of coffee will cause a(n)

Figure 4-26 -Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?