Question 1

In competitive markets,buyers

Accepted Answer

A)   are price takers,but sellers are price setters.
B)   are price setters,but sellers are price takers.
C)   and sellers are price takers.
D)   and sellers are price setters.E) A) and B)
F) A) and C)

Question 2

Figure 4-1 
-Refer to Figure 4-1.It is apparent from the figure that the

Accepted Answer

A)   good is inferior.
B)   demand for the good decreases as income increases.
C)   demand for the good conforms to the law of demand.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 3

A movement upward and to the right along a supply curve is called a(n)

Accepted Answer

A)   increase in supply.
B)   decrease in supply.
C)   decrease in quantity supplied.
D)   increase in quantity supplied.E) A) and B)
F) A) and C)

Question 4

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities. A to SB. D)  SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-20.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.E) B) and C)
F) All of the above

Question 5

Figure 4-5  
-Refer to Figure 4-5.Suppose that the federal government is concerned about obesity in the United States.Congress is considering two plans.One would require "junk food" producers to include warning labels on all junk food.The other would impose a tax on all products considered to be junk food.We could illustrate the tax as producing a movement from

Accepted Answer

A)   Point A to Point B in Panel 1.
B)   Point B to Point A in Panel 1.
C)   Point A to Point C in Panel 2.
D)   Point C to Point A in Panel 2.E) None of the above
F) All of the above

Question 6

Equilibrium price must decrease when demand

Accepted Answer

A)   increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously.
B)   increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously.
C)   decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously.
D)   decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously.E) B) and D)
F) B) and C)

Question 7

Which of the following changes would not shift the supply curve for a good or service?

Accepted Answer

A)   a change in production technology
B)   a change in the price of the good or service
C)   a change in expectations about the future price of the good or service
D)   a change in input pricesE) A) and B)
F) B) and C)

Question 8

Figure 4-3

-Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $15 is

Accepted Answer

A)   0 units.
B)   10 units.
C)   15 units.
D)   25 units.E) C) and D)
F) A) and B)

Question 9

Scenario 4-2
Suppose the demand schedule in a market can be represented by the equation  ,where  is the quantity demanded and  is the price.Also,suppose the supply schedule can be represented by the equation  ,where  is the quantity supplied.
-Refer to Scenario 4-2.What is the equilibrium quantity in this market?

Accepted Answer

The answer of Scenario 4-2
Suppose the demand schedule in a...

Question 10

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Accepted Answer

A)   the price of pork increases.
B)   the price of pork decreases.
C)   the price of pork does not change.
D)   there is no longer a market for pork.E) A) and B)
F) A) and C)

Question 11

Figure 4-6 
-Refer to Figure 4-6.If the demand curve shifts from D to D',then

Accepted Answer

A)   firms would be willing to supply less of the good than before at each possible price.
B)   people are willing to buy less of the good than before at each possible price.
C)   people's incomes must have decreased.
D)   the price of the product has increased,causing consumers to buy less of the product.E) A) and C)
F) B) and C)

Question 12

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 13

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. A to DB. B)  DB to DA. C)  x to y. D)  y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-19.All else equal,a sale on chicken would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and B)
F) C) and D)

Question 14

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.E) C) and D)
F) All of the above

Question 15

Figure 4-7

-Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a) ,the arrows are consistent with which of the following events?

Accepted Answer

A)   Tobacco and marijuana are complements,and the price of marijuana decreased.
B)   Tobacco is a "gateway drug," and the price of marijuana increased.
C)   The price of cigarettes increased.
D)   The arrows are consistent with all of these events.E) A) and C)
F) A) and D)

Question 16

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. A to DB. B)  DB to DA. C)  x to y. D)  y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-19.All else equal,an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and C)
F) B) and C)

Question 17

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.E) A) and D)
F) B) and C)

Question 18

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A)   today's price of gasoline.
B)   the expected future price of gasoline.
C)   the number of buyers of gasoline.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 19

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies,the equilibrium price for movies will increase,but the effect on the equilibrium quantity of movies is ambiguous.

Accepted Answer

A) True 
 B)False

Question 20

The market for ice cream is a

Accepted Answer

A)   monopolistic market.
B)   highly competitive market.
C)   highly organized market.
D)   Both b and c are correct.E) A) and D)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

Equilibrium price must decrease when demand

Correct Answer
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Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Correct Answer
verified

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Correct Answer
verified

Today's supply curve for gasoline could shift in response to a change in

Correct Answer
verified

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

Correct Answer
verified

The market for ice cream is a

Correct Answer
verified

Which of the following changes would not shift the supply curve for a good or service?

Correct Answer
verified

A movement upward and to the right along a supply curve is called a(n)

Correct Answer
verified

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a) ,the arrows are consistent with which of the following events?

Correct Answer
verified

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies,the equilibrium price for movies will increase,but the effect on the equilibrium quantity of movies is ambiguous.

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1.It is apparent from the figure that the

Correct Answer
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In competitive markets,buyers

Correct Answer
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An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct Answer
verified

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct Answer
verified

Equilibrium quantity must decrease when demand

Correct Answer
verified

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,a sale on chicken would cause a move from

Correct Answer
verified

Correct Answer
verified

Figure 4-3 -Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $15 is

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6.If the demand curve shifts from D to D',then

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Equilibrium price must decrease when demand

Correct AnswerverifiedShow Answer

Assume the market for pork is perfectly competitive.When one pork buyer exits the market,

Correct AnswerverifiedShow Answer

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Today's supply curve for gasoline could shift in response to a change in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The market for ice cream is a

Correct AnswerverifiedShow Answer

Which of the following changes would not shift the supply curve for a good or service?

Correct AnswerverifiedShow Answer

A movement upward and to the right along a supply curve is called a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a) ,the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies,the equilibrium price for movies will increase,but the effect on the equilibrium quantity of movies is ambiguous.

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1.It is apparent from the figure that the

Correct AnswerverifiedShow Answer

In competitive markets,buyers

Correct AnswerverifiedShow Answer

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct AnswerverifiedShow Answer

Equilibrium quantity must decrease when demand

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,a sale on chicken would cause a move from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-3 -Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $15 is

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6.If the demand curve shifts from D to D',then

Correct AnswerverifiedShow Answer

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