Question 1

Figure 4-2
 
-Refer to the Figure 4-2.What would happen at a price of $15

Accepted Answer

A)  There would be a shortage of 400 units.
B)  There would be a surplus of 400 units.
C)  There would be a shortage of 200 units.
D)  There would be a surplus of 200 units.E) B) and D)
F) B) and C)

Question 2

If two goods are complements,what happens if there is a decrease in the price of one good

Accepted Answer

A)  It increases the quantity demanded of the other good.
B)  It reduces the demand for the other good.
C)  It reduces the quantity demanded of the other good.
D)  It raises the demand for the other good.E) A) and C)
F) B) and C)

Question 3

Figure 4-5
 
-Refer to the Figure 4-5.Which of the four graphs represents the market for toboggans in August

Accepted Answer

A)  graph A
B)  graph B
C)  graph C
D)  graph DE) C) and D)
F) B) and C)

Question 4

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly (a complementary good)  increased,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous
B)  price will rise and the effect on quantity is ambiguous
C)  quantity will fall and the effect on price is ambiguous
D)  effect on both price and quantity is ambiguousE) B) and C)
F) A) and D)

Question 5

What happens if there is a shortage of a good at the current price

Accepted Answer

A)  Sellers are producing more than buyers wish to buy.
B)  The market must be in equilibrium.
C)  The price is below the equilibrium price.
D)  Quantity demanded equals quantity supplied.E) B) and D)
F) C) and D)

Question 6

If the demand for a product decreases,what would we expect

Accepted Answer

A)  equilibrium price to increase and equilibrium quantity to decrease
B)  equilibrium price to decrease and equilibrium quantity to increase
C)  equilibrium price and equilibrium quantity to both increase
D)  equilibrium price and equilibrium quantity to both decreaseE) A) and B)
F) B) and D)

Question 7

Suppose donuts are currently selling for $14 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect

Accepted Answer

A)  a shortage to exist and the market price of donuts to increase
B)  a shortage to exist and the market price of donuts to decrease
C)  a surplus to exist and the market price of donuts to increase
D)  a surplus to exist and the market price of donuts to decreaseE) C) and D)
F) A) and B)

Question 8

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts fell,the price of jelly (a complementary good)  fell,more firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous
B)  quantity will fall and the effect on price is ambiguous
C)  quantity will rise and the effect on price is ambiguous
D)  effect on both price and quantity is ambiguousE) All of the above
F) A) and D)

Question 9

What is the side of the market that deals with the willingness and ability to produce and sell

Accepted Answer

A)  demand
B)  competition
C)  supply
D)  opportunity costE) None of the above
F) B) and C)

Question 10

Refer to the following:
A.What is the difference between a "change in demand" and a "change in quantity demanded"
 (Graph your answer.)
B.For each of the following changes,determine whether there will be a movement along the demand curve or a shift in the demand curve.
a.a change in the price of a related good
b.a change in tastes
c.a change in the number of buyers
d.a change in price
e.a change in expectations
f.a change in income

Accepted Answer

A.A change in demand refers to a shift i...

Question 11

Wheat is the main input in the production of flour.All else equal,if the price of wheat increases,what would we expect

Accepted Answer

A)  the supply of flour to increase
B)  the supply of flour to decrease
C)  the demand for flour to increase
D)  the demand for flour to decreaseE) B) and D)
F) B) and C)

Question 12

What does a market demand curve reflect

Accepted Answer

A)  how much all buyers are willing and able to buy at each possible price
B)  how quantity demanded changes when the number of buyers changes
C)  the fact that the level of income is inversely related to quantity demanded
D)  when the buyers are willing to buy the mostE) A) and B)
F) B) and C)

Question 13

What is an example of a perfectly competitive market

Accepted Answer

A)  cable TV market
B)  soybean market
C)  tablet market
D)  running shoe marketE) C) and D)
F) A) and C)

Question 14

Market demand is given as QD = 300 - 2P.Market supply is given as QS = 2P + 100.In a perfectly competitive equilibrium,what will be price and quantity

Accepted Answer

A)  Price will be $20 and quantity will be 140.
B)  Price will be $50 and quantity will be 200.
C)  Price will be $100 and quantity will be 300.
D)  Price will be $140 and quantity will be 380.E) None of the above
F) B) and C)

Question 15

Refer to the following:
A.What is the difference between a "change in supply" and a "change in quantity supplied"
 (Graph your answer).
B.For each of the following changes,determine whether there will be a change in quantity supplied or a change in supply.
a.a change in the resource cost
b.a change in producer expectations
c.a change in price
d.a change in technology
e.a change in the number of sellers

Accepted Answer

A.A change in supply refers to a shift i...

Question 16

New oak tables are normal goods.What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,some buyers exit the market for oak tables,and the price of wood saws increased

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous
B)  price will rise and the effect on quantity is ambiguous
C)  quantity will fall and the effect on price is ambiguous
D)  quantity will rise and the effect on price is ambiguousE) A) and B)
F) A) and C)

Question 17

Figure 4-2
 
-Refer to the Figure 4-2.What would happen at the equilibrium price

Accepted Answer

A)  At the equilibrium price, 200 units would be supplied and demanded.
B)  At the equilibrium price, 400 units would be supplied and demanded.
C)  At the equilibrium price, 600 units would be supplied and demanded.
D)  At the equilibrium price, 600 units would be supplied, but only 200 would be demanded.E) All of the above
F) C) and D)

Question 18

Market demand is given as QD = 300 - 0.5P.Market supply is given as QS = 50 + 2P.What would result if the market price were $50

Accepted Answer

A)  a shortage of 100
B)  a surplus of 100
C)  a surplus of 125
D)  a shortage of 125E) A) and D)
F) A) and C)

Question 19

Market demand is given as QD = 70 - 2P.Market supply is given as QS = P + 10.What would result if the market price were $10

Accepted Answer

A)  a shortage of 30
B)  a surplus of 20
C)  a surplus of 30
D)  a shortage of 20E) None of the above
F) B) and C)

Question 20

In a perfectly competitive market,buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Correct Answer
verified
A.A change in demand refers to a shift i...
View Answer

Market demand is given as Q_D= 300 - 0.5P.Market supply is given as Q_S= 50 + 2P.What would result if the market price were $50

Correct Answer
verified

What is an example of a perfectly competitive market

Correct Answer
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Figure 4-2 -Refer to the Figure 4-2.What would happen at the equilibrium price

Correct Answer
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If the demand for a product decreases,what would we expect

Correct Answer
verified

What does a market demand curve reflect

Correct Answer
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If two goods are complements,what happens if there is a decrease in the price of one good

Correct Answer
verified

Suppose donuts are currently selling for $14 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect

Correct Answer
verified

Correct Answer
verified
A.A change in supply refers to a shift i...
View Answer

Market demand is given as Q_D= 300 - 2P.Market supply is given as Q_S= 2P + 100.In a perfectly competitive equilibrium,what will be price and quantity

Correct Answer
verified

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly (a complementary good) increased,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you

Correct Answer
verified

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs represents the market for toboggans in August

Correct Answer
verified

What happens if there is a shortage of a good at the current price

Correct Answer
verified

New oak tables are normal goods.What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,some buyers exit the market for oak tables,and the price of wood saws increased

Correct Answer
verified

Wheat is the main input in the production of flour.All else equal,if the price of wheat increases,what would we expect

Correct Answer
verified

In a perfectly competitive market,buyers and sellers are price setters.

Correct Answer
verified

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts fell,the price of jelly (a complementary good) fell,more firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you

Correct Answer
verified

What is the side of the market that deals with the willingness and ability to produce and sell

Correct Answer
verified

Figure 4-2 -Refer to the Figure 4-2.What would happen at a price of $15

Correct Answer
verified

Market demand is given as Q_D= 70 - 2P.Market supply is given as Q_S= P + 10.What would result if the market price were $10

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedA.A change in demand refers to a shift i...View AnswerShow Answer

Market demand is given as QD = 300 - 0.5P.Market supply is given as QS = 50 + 2P.What would result if the market price were $50

Correct AnswerverifiedShow Answer

What is an example of a perfectly competitive market

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to the Figure 4-2.What would happen at the equilibrium price

Correct AnswerverifiedShow Answer

If the demand for a product decreases,what would we expect

Correct AnswerverifiedShow Answer

What does a market demand curve reflect

Correct AnswerverifiedShow Answer

If two goods are complements,what happens if there is a decrease in the price of one good

Correct AnswerverifiedShow Answer

Suppose donuts are currently selling for $14 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA.A change in supply refers to a shift i...View AnswerShow Answer

Market demand is given as QD = 300 - 2P.Market supply is given as QS = 2P + 100.In a perfectly competitive equilibrium,what will be price and quantity

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly (a complementary good) increased,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you

Correct AnswerverifiedShow Answer

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs represents the market for toboggans in August

Correct AnswerverifiedShow Answer

What happens if there is a shortage of a good at the current price

Correct AnswerverifiedShow Answer

New oak tables are normal goods.What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,some buyers exit the market for oak tables,and the price of wood saws increased

Correct AnswerverifiedShow Answer

Wheat is the main input in the production of flour.All else equal,if the price of wheat increases,what would we expect

Correct AnswerverifiedShow Answer

In a perfectly competitive market,buyers and sellers are price setters.

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts fell,the price of jelly (a complementary good) fell,more firms decided to produce peanut butter,and health officials announced that eating peanut butter was bad for you

Correct AnswerverifiedShow Answer

What is the side of the market that deals with the willingness and ability to produce and sell

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to the Figure 4-2.What would happen at a price of $15

Correct AnswerverifiedShow Answer

Market demand is given as QD = 70 - 2P.Market supply is given as QS = P + 10.What would result if the market price were $10

Correct AnswerverifiedShow Answer

Correct Answer
verified
A.A change in demand refers to a shift i...
View Answer

Market demand is given as Q_D= 300 - 0.5P.Market supply is given as Q_S= 50 + 2P.What would result if the market price were $50

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A.A change in supply refers to a shift i...
View Answer

Market demand is given as Q_D= 300 - 2P.Market supply is given as Q_S= 2P + 100.In a perfectly competitive equilibrium,what will be price and quantity

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Market demand is given as Q_D= 70 - 2P.Market supply is given as Q_S= P + 10.What would result if the market price were $10

Correct Answer
verified