Question 1

If a determinant of demand other than price changes,the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 2

The sum of all the individual supply curves for a product is called

Accepted Answer

A)  total supply.
B)  market supply.
C)  aggregate supply.
D)  total output.E) B) and D)
F) None of the above

Question 3

Table 4-2   Price  FirmA’s  Quantity  Supplied  Firm B’s  Quantity  Supplied  Firm C’s  Quantity  Supplied  Fim D’s  Quantity  Supplied $010000$28345$466810$6491215$8212820$10015425\begin{array} { | c | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { FirmA&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm B&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm C&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Fim D&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} \\hline \$ 0 & 10 & 0 & 0 & 0 \\hline \$ 2 & 8 & 3 & 4 & 5 \\hline \$ 4 & 6 & 6 & 8 & 10 \\hline \$ 6 & 4 & 9 & 12 & 15 \\hline \$ 8 & 2 & 12 & 8 & 20 \\hline \$ 10 & 0 & 15 & 4 & 25 \\hline\end{array} Price $0$2$4$6$8$10​ FirmA’s  Quantity  Supplied ​1086420​ Firm B’s  Quantity  Supplied ​03691215​ Firm C’s  Quantity  Supplied ​0481284​ Fim D’s  Quantity  Supplied ​0510152025​​ 
-Refer to Table 4-4.If these are the only four sellers in the market,then when the price increases from $6 to $8,the market quantity supplied

Accepted Answer

A)  increases by 0.5 units.
B)  increases by 2 units.
C)  decreases by 4 units.
D)  increases by 42 units. E) A) and C)
F) B) and C)

Question 4

Who gets scarce resources in a market economy?

Accepted Answer

A)  the government
B)  whoever the government decides gets them
C)  whoever wants them
D)  whoever is willing and able to pay the priceE) B) and C)
F) B) and D)

Question 5

In a market economy,supply and demand are important because they

Accepted Answer

A)  are direct policy tools used by government agencies to regulate the economy.
B)  illustrate when an market is in equilibrium,but they are not helpful when a market is out of equilibrium.
C)  can be used to predict the impact on the economy of various events and policies.
D)  All of the above are correct.E) A) and C)
F) A) and D)

Question 6

Equilibrium price must increase 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) None of the above
F) B) and C)

Question 7

Given the table below, graph the demand and supply curves for flashlights.  Make certain to label the equilibrium price and equilibrium quantity.

$$\begin{array} { | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { Quantity Demanded } \
\text { Per Month }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { Per Month }
\end{array} \
\hline \$ 5 & 6,000 & 10,000 \
\hline \$ 4 & 8,000 & 8,000 \
\hline \$ 3 & 10,000 & 6,000 \
\hline \$ 2 & 12,000 & 4,000 \
\hline \$ 1 & 14,000 & 2,000 \
\hline
\end{array}$$

b.	What is the equilibrium price and the equilibrium quantity?
c.	Suppose the price is currently $5.  What problem would exist in the market?  What would you expect to happen to price?  Show this on your graph.
d.	Suppose the price is currently $2.  What problem would exist in the market?  What would you expect to happen to price?  Show this on your graph.

Accepted Answer

a.

b.
The equilibrium price (Pe)is $...

Question 8

Which of the following would most likely serve as an example of a monopoly?

Accepted Answer

A)  a bakery in a large city
B)  a bank in a large city
C)  a local cable television company
D)  a small group of corn farmersE) None of the above
F) B) and C)

Question 9

An increase in the price of a good will

Accepted Answer

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

Question 10

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

Question 11

The forces that make market economies work are

Accepted Answer

A)  work and leisure.
B)  politics and religion.
C)  supply and demand.
D)  taxes and government spending.E) B) and C)
F) B) and D)

Question 12

The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)  market harmony.
B)  coincidence.
C)  equivalence.
D)  equilibrium.E) A) and B)
F) B) and C)

Question 13

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)  is referred to as the law of supply.
B)  applies only to a few goods in the economy.
C)  is represented by a downward-sloping supply curve.
D)  All of the above are correct.E) B) and C)
F) C) and D)

Question 14

When all market participants are price takers who have no influence over prices,the markets have

Accepted Answer

A)  only a few buyers and sellers.
B)  numerous sellers but only a few buyers.
C)  numerous buyers but only a few sellers.
D)  numerous buyers and sellers.E) All of the above
F) C) and D)

Question 15

Table 4-2   Price  FirmA’s  Quantity  Supplied  Firm B’s  Quantity  Supplied  Firm C’s  Quantity  Supplied  Fim D’s  Quantity  Supplied $010000$28345$466810$6491215$8212820$10015425\begin{array} { | c | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { FirmA&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm B&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm C&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Fim D&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} \\hline \$ 0 & 10 & 0 & 0 & 0 \\hline \$ 2 & 8 & 3 & 4 & 5 \\hline \$ 4 & 6 & 6 & 8 & 10 \\hline \$ 6 & 4 & 9 & 12 & 15 \\hline \$ 8 & 2 & 12 & 8 & 20 \\hline \$ 10 & 0 & 15 & 4 & 25 \\hline\end{array} Price $0$2$4$6$8$10​ FirmA’s  Quantity  Supplied ​1086420​ Firm B’s  Quantity  Supplied ​03691215​ Firm C’s  Quantity  Supplied ​0481284​ Fim D’s  Quantity  Supplied ​0510152025​​ 
-Refer to Table 4-2.Which supply schedules obey the law of supply?

Accepted Answer

A)  Firm A's only
B)  Firm B's,Firm C's,and Firm D's only
C)  Firm A's and Firm C's only
D)  Firm B's and Firm D's only E) None of the above
F) All of the above

Question 16

-From the above figure,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.E) All of the above
F) C) and D)

Question 17

Table 4-1   Price  Quantity Demanded  by Michelle  Quantity Demanded  by Laura  Quantity Demanded  by Hillary $55411$46613$37815$281017$191219$0101421\begin{array} { | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Quantity Demanded } \	ext { by Michelle }\end{array} & \begin{array} { c } 	ext { Quantity Demanded } \	ext { by Laura }\end{array} & \begin{array} { c } 	ext { Quantity Demanded } \	ext { by Hillary }\end{array} \\hline \$ 5 & 5 & 4 & 11 \\hline \$ 4 & 6 & 6 & 13 \\hline \$ 3 & 7 & 8 & 15 \\hline \$ 2 & 8 & 10 & 17 \\hline \$ 1 & 9 & 12 & 19 \\hline \$ 0 & 10 & 14 & 21 \\hline\end{array} Price $5$4$3$2$1$0​ Quantity Demanded  by Michelle ​5678910​ Quantity Demanded  by Laura ​468101214​ Quantity Demanded  by Hillary ​111315171921​​ 
-Refer to Table 4-1.If the market consists of Laura and Hillary only and the price falls by $1,the quantity demanded in the market increases by

Accepted Answer

A)  2 units.
B)  3 units.
C)  4 units.
D)  5 units. E) A) and B)
F) B) and C)

Question 18

When the price of a good is lower than the equilibrium price,

Accepted Answer

A)  a surplus will exist.
B)  buyers desire to purchase more than is produced.
C)  sellers desire to produce and sell more than buyers wish to purchase.
D)  quantity supplied exceeds quantity demanded.E) C) and D)
F) A) and D)

Question 19

If a good or service has only one seller,then the seller is called a monopoly.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

If a good or service has only one seller,then the seller is called a monopoly.

Correct Answer
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Correct Answer
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When all market participants are price takers who have no influence over prices,the markets have

Correct Answer
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An increase in quantity supplied

Correct Answer
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If a determinant of demand other than price changes,the demand curve shifts.

Correct Answer
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Equilibrium price must increase when demand

Correct Answer
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Who gets scarce resources in a market economy?

Correct Answer
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The unique point at which the supply and demand curves intersect is called

Correct Answer
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Correct Answer
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Correct Answer
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a.
b.
The equilibrium price (Pe)is $...
View Answer

An increase in the price of a good will

Correct Answer
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The forces that make market economies work are

Correct Answer
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In a market economy,supply and demand are important because they

Correct Answer
verified

Which of the following would most likely serve as an example of a monopoly?

Correct Answer
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"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Correct Answer
verified

The sum of all the individual supply curves for a product is called

Correct Answer
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When the price of a good is lower than the equilibrium price,

Correct Answer
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Correct Answer
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-From the above figure,at a price of

Correct Answer
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Exam 4: The Market Forces of Supply and Demand

If a good or service has only one seller,then the seller is called a monopoly.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When all market participants are price takers who have no influence over prices,the markets have

Correct AnswerverifiedShow Answer

An increase in quantity supplied

Correct AnswerverifiedShow Answer

If a determinant of demand other than price changes,the demand curve shifts.

Correct AnswerverifiedShow Answer

Equilibrium price must increase when demand

Correct AnswerverifiedShow Answer

Who gets scarce resources in a market economy?

Correct AnswerverifiedShow Answer

The unique point at which the supply and demand curves intersect is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverifieda. b. The equilibrium price (Pe)is $...View AnswerShow Answer

An increase in the price of a good will

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The forces that make market economies work are

Correct AnswerverifiedShow Answer

In a market economy,supply and demand are important because they

Correct AnswerverifiedShow Answer

Which of the following would most likely serve as an example of a monopoly?

Correct AnswerverifiedShow Answer

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Correct AnswerverifiedShow Answer

The sum of all the individual supply curves for a product is called

Correct AnswerverifiedShow Answer

When the price of a good is lower than the equilibrium price,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-From the above figure,at a price of

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a.
b.
The equilibrium price (Pe)is $...
View Answer

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