Question 1

Figure 4-27
Panel (a)  Panel (b)    Panel (c)  Panel (d)   
-Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and D)
F) A) and C)

Question 2

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

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

Question 3

Figure 4-6 
-Refer to Figure 4-6. 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) B) and C)
F) A) and D)

Question 4

Table 4-7 
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then when the price decreases from $10 to $8, the market quantity supplied decreases by

Accepted Answer

A)   2.5 gallons.
B)   4 gallons.
C)   10 gallons.
D)   50 gallons.E) A) and B)
F) All of the above

Question 5

. What is the new equilibrium price and quantity in this market?

Accepted Answer

The new eq...

Question 6

Table 4-4 
-Refer to Table 4-4. Suppose the market consists of Adam, Barb, and Carl. If the price falls by $2, the quantity demanded in the market increases by

Accepted Answer

A)   4 units.
B)   6 units.
C)   8 units.
D)   10 units.E) C) and D)
F) B) and D)

Question 7

When the price of a good or service changes,

Accepted Answer

A)   the demand curve shifts in the opposite direction.
B)   the supply curve shifts in the opposite direction.
C)   the supply curve shifts in the same direction.
D)   there is a movement along a given supply curve.E) A) and B)
F) All of the above

Question 8

Exceptionally favorable growing conditions 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.E) B) and D)
F) B) and C)

Question 9

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) All of the above
F) A) and B)

Question 10

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

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 increaseE) C) and D)
F) A) and B)

Question 11

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Accepted Answer

A) True 
 B)False

Question 12

Figure 4-14 
-Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Accepted Answer

A)   a decrease in supply
B)   an increase in supply
C)   a movement along the supply curve
D)   a decrease in demandE) A) and D)
F) A) and C)

Question 13

If something happens to alter the quantity demanded at any given price, then

Accepted Answer

A)   the demand curve becomes steeper.
B)   the demand curve becomes flatter.
C)   the demand curve shifts.
D)   we move along the demand curve.E) A) and B)
F) C) and D)

Question 14

Which of the following is an example of a highly organized market?

Accepted Answer

A)   the market for textbooks
B)   the market for spa services
C)   the market for soybeans
D)   the market for ice creamE) B) and D)
F) B) and C)

Question 15

Figure 4-11 
-Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

Accepted Answer

A)   a decrease in the price of the good.
B)   an increase in the price of the good.
C)   an advance in production technology.
D)   a decrease in input prices.E) A) and B)
F) B) and C)

Question 16

Table 4-7 
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Accepted Answer

A)   4 gallons.
B)   5 gallons.
C)   20 gallons.
D)   80 gallons.E) A) and B)
F) A) and C)

Question 17

Which of the following events could cause an increase in the supply of ceiling fans?

Accepted Answer

A)   The number of sellers of ceiling fans increases.
B)   There is an increase in the price of air conditioners, and consumers regard air conditioners and ceiling fans as substitutes.
C)   There is an increase in the price of the motor that powers ceiling fans.
D)   All of the above are correct.E) A) and D)
F) None of the above

Question 18

The following table contains a demand schedule for a good.  If the law of demand applies to this good, then A could be

Accepted Answer

A)   0.
B)   100.
C)   200.
D)   400.E) C) and D)
F) B) and D)

Question 19

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Accepted Answer

A)   will increase but not until the end of the year.
B)   increases today.
C)   decreases as she looks for a substitute good.
D)   shifts left today.E) A) and B)
F) B) and D)

Question 20

If Miguel expects to earn a higher income next month, he may choose to

Accepted Answer

A)   save more now and spend less of his current income on goods and services.
B)   save less now and spend more of his current income on goods and services.
C)   decrease his current demand for goods and services.
D)   move along his current demand curves for goods and services.E) A) and D)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Correct Answer
verified

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then when the price decreases from $10 to $8, the market quantity supplied decreases by

Correct Answer
verified

Which of the following events could cause an increase in the supply of ceiling fans?

Correct Answer
verified

Which of the following is an example of a highly organized market?

Correct Answer
verified

The following table contains a demand schedule for a good. If the law of demand applies to this good, then A could be

Correct Answer
verified

When the price of a good or service changes,

Correct Answer
verified

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause a(n)

Correct Answer
verified

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Correct Answer
verified

Correct Answer
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In competitive markets, buyers

Correct Answer
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Which of the following events must cause equilibrium quantity to rise?

Correct Answer
verified

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam, Barb, and Carl. If the price falls by $2, the quantity demanded in the market increases by

Correct Answer
verified

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Correct Answer
verified

If Miguel expects to earn a higher income next month, he may choose to

Correct Answer
verified

. What is the new equilibrium price and quantity in this market?

Correct Answer
verified
The new eq...
View Answer

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Correct Answer
verified

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

Correct Answer
verified

Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Correct Answer
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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct Answer
verified

If something happens to alter the quantity demanded at any given price, then

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Correct AnswerverifiedShow Answer

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then when the price decreases from $10 to $8, the market quantity supplied decreases by

Correct AnswerverifiedShow Answer

Which of the following events could cause an increase in the supply of ceiling fans?

Correct AnswerverifiedShow Answer

Which of the following is an example of a highly organized market?

Correct AnswerverifiedShow Answer

The following table contains a demand schedule for a good. If the law of demand applies to this good, then A could be

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause a(n)

Correct AnswerverifiedShow Answer

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the left.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In competitive markets, buyers

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam, Barb, and Carl. If the price falls by $2, the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

If Miguel expects to earn a higher income next month, he may choose to

Correct AnswerverifiedShow Answer

. What is the new equilibrium price and quantity in this market?

Correct AnswerverifiedThe new eq...View AnswerShow Answer

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Correct AnswerverifiedShow Answer

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph is caused by

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Correct AnswerverifiedShow Answer

If something happens to alter the quantity demanded at any given price, then

Correct AnswerverifiedShow Answer

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The new eq...
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