Question 1

Which of the following would increase in response to a increase in the price of ironing boards?

Accepted Answer

A)  the quantity of irons demanded at each possible price of irons
B)  the equilibrium quantity of irons
C)  the equilibrium price of irons
D)  None of the above is correct.E) None of the above
F) A) and B)

Question 2

For the general population, a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)  1 percent reduction in the quantity demanded of cigarettes.
B)  4 percent reduction in the quantity demanded of cigarettes.
C)  10 percent reduction in the quantity demanded of cigarettes.
D)  12 percent reduction in the quantity demanded of cigarettes.E) C) and D)
F) None of the above

Question 3

A decrease in quantity supplied

Accepted Answer

A)  results in a movement downward and to the left along a fixed supply curve.
B)  results in a movement upward and to the right along a fixed supply curve.
C)  shifts the supply curve to the left.
D)  shifts the supply curve to the right.E) B) and C)
F) All of the above

Question 4

A higher price for batteries would result in a(n)

Accepted Answer

A)  increase in the demand for flashlights.
B)  decrease in the demand for flashlights.
C)  increase in the demand for batteries.
D)  decrease in the demand for batteries.E) A) and B)
F) A) and C)

Question 5

An increase in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve.
B)  results in a movement upward and to the left along a demand curve.
C)  shifts the demand curve to the left.
D)  shifts the demand curve to the right.E) A) and B)
F) B) and C)

Question 6

A competitive market is a market in which

Accepted Answer

A)  an auctioneer helps set prices and arrange sales.
B)  there are only a few sellers.
C)  the forces of supply and demand do not apply.
D)  no individual buyer or seller has any significant impact on the market price.E) A) and D)
F) B) and C)

Question 7

Figure 4-24
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 4-24. All else equal, an increase in the productivity of turkey farmers 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) C) and D)

Question 8

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Accepted Answer

A) True 
 B)False

Question 9

Table 4-6 
-Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $10 is

Accepted Answer

A)  3 units.
B)  11 units.
C)  25 units.
D)  44 units.E) A) and C)
F) A) and B)

Question 10

Figure 4-18 
-Refer to Figure 4-18. At what price would there be an excess demand of 200 units of the good?

Accepted Answer

A)  $15
B)  $20
C)  $30
D)  $35E) B) and C)
F) A) and B)

Question 11

A market supply curve is determined by

Accepted Answer

A)  vertically summing individual supply curves.
B)  horizontally summing individual supply curves.
C)  finding the average quantity supplied by sellers at each possible price.
D)  finding the average price at which sellers are willing and able to sell a particular quantity of the good.E) A) and B)
F) None of the above

Question 12

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Accepted Answer

A)  granite countertops to shift to the left.
B)  granite countertops to shift to the right.
C)  substitute products such as marble countertops to shift to the right.
D)  substitute products such as marble countertops to be unaffected by buyers' preferences for granite.E) B) and C)
F) All of the above

Question 13

Figure 4-24
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 4-24. All else equal, the approach of Thanksgiving 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) A) and B)

Question 14

Figure 4-10 
-Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Accepted Answer

A)  shift in the supply curve.
B)  decrease in the quantity supplied.
C)  increase in the quantity supplied.
D)  Both a and b are correct.E) B) and C)
F) A) and B)

Question 15

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

Accepted Answer

A)  Both the equilibrium price and quantity would increase.
B)  Both the equilibrium price and quantity would decrease.
C)  The equilibrium price would increase, and the equilibrium quantity would decrease.
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.E) All of the above
F) A) and B)

Question 16

A decrease in input costs to firms in a market will result in a(n)

Accepted Answer

A)  decrease in equilibrium price and an increase in equilibrium quantity.
B)  decrease in equilibrium price and a decrease in equilibrium quantity.
C)  increase in equilibrium price and a decrease in equilibrium quantity.
D)  increase in equilibrium price and an increase in equilibrium quantity.E) B) and D)
F) B) and C)

Question 17

Which of the following demonstrates the law of supply?

Accepted Answer

A)  When leather became more expensive, belt producers decreased their supply of belts.
B)  When car production technology improved, car producers increased their supply of cars.
C)  When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters.
D)  When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.E) A) and B)
F) C) and D)

Question 18

Table 4-3 
-Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

Accepted Answer

A)  decreases by 1.75 units.
B)  increases by 2 units.
C)  decreases by 7 units.
D)  decreases by 24 units.E) C) and D)
F) All of the above

Question 19

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. 
-Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Accepted Answer

A)  The price of sugar decreases.
B)  All four family incomes increase, and Mt. Dew is a normal good.
C)  A major university study reveals that drinking Mt. Dew can cause diabetes.
D)  The technology for bottling carbonated beverages improves.E) None of the above
F) B) and C)

Question 20

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

Exam 4: The Market Forces of Supply and Demand

A higher price for batteries would result in a(n)

Correct AnswerverifiedShow Answer

Which of the following would increase in response to a increase in the price of ironing boards?

Correct AnswerverifiedShow Answer

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Correct AnswerverifiedShow Answer

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the productivity of turkey farmers would cause a move from

Correct AnswerverifiedShow Answer

An increase in quantity demanded

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Correct AnswerverifiedShow Answer

Which of the following demonstrates the law of supply?

Correct AnswerverifiedShow Answer

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct AnswerverifiedShow Answer

A decrease in input costs to firms in a market will result in a(n)

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

Correct AnswerverifiedShow Answer

A competitive market is a market in which

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. At what price would there be an excess demand of 200 units of the good?

Correct AnswerverifiedShow Answer

A market supply curve is determined by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $10 is

Correct AnswerverifiedShow Answer

For the general population, a 10 percent increase in the price of cigarettes leads to a

Correct AnswerverifiedShow Answer

You watch a lot of HGTV during your summer vacation, and you notice that most housing buyers list granite countertops in their "must have" lists when buying a new or existing house. You expect the demand for

Correct AnswerverifiedShow Answer

A decrease in quantity supplied

Correct AnswerverifiedShow Answer

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 approach of Thanksgiving would cause a move from

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified