Question 1

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)   only Harry's
B)   only Darby's
C)   both Harry's and Darby's
D)   neither Harry's nor Darby'sE) C) and D)
F) B) and C)

Question 2

Figure 4-13 
-Refer to Figure 4-13.The shift from S to S' in the market for peaches could be caused by a(n)

Accepted Answer

A)   increase in the price of peaches.
B)   decrease in the price of pears.
C)   increase in income.
D)   decrease in the labor costs of the workers who pick peaches.E) A) and D)
F) All of the above

Question 3

Table 4-3
 
-Refer to Table 4-3.For whom is the good a normal good?

Accepted Answer

A)   Bert only
B)   Grover only
C)   Bert,Ernie,Grover,and Oscar
D)   This cannot be determined from the table.E) B) and D)
F) All of the above

Question 4

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

Question 5

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

Accepted Answer

A) True 
 B)False

Question 6

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Accepted Answer

A) True 
 B)False

Question 7

An example of a perfectly competitive market would be the market for

Accepted Answer

A)   electricity.
B)   soybeans.
C)   coffee shops.
D)   restaurants.E) B) and D)
F) A) and D)

Question 8

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) A) and B)
F) None of the above

Question 9

Which of these statements does not apply to market economies?

Accepted Answer

A)   Prices prevent decentralized decision making from degenerating into chaos.
B)   Prices coordinate the actions of millions of people with varying abilities and desires.
C)   Prices ensure that anyone who wants a product can get it.
D)   Prices ensure that what needs to get done does in fact get done.E) All of the above
F) C) and D)

Question 10

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 11

If,at the current price,there is a shortage of a good,then

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

Question 12

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)   The price of marijuana,a complement to cigarettes,increased.
B)   Mandatory health warnings were placed on cigarette packages.
C)   Several foreign countries banned U.S.cigarettes in their countries.
D)   A tax was placed on cigarettes.E) A) and B)
F) A) and C)

Question 13

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies,while all the other factors that affect how much consumers want to buy are held constant.

Accepted Answer

A) True 
 B)False

Question 14

"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded is referred to as

Accepted Answer

A)   equilibrium.
B)   the law of demand.
C)   the relationship between supply and demand.
D)   the definition of an inferior good.E) None of the above
F) B) and C)

Question 15

If a decrease in income increases the demand for a good,then the good is a(n)

Accepted Answer

A)   substitute good.
B)   complementary good.
C)   normal good.
D)   inferior good.E) C) and D)
F) A) and B)

Question 16

Scenario 4-1
The following table shows the supply and demand schedules in a market.
 
-Refer to Scenario 4-1.At a price of $2,will there be a surplus or shortage of units in this market?

Accepted Answer

The answer of Scenario 4-1
The following table shows the supply...

Question 17

Figure 4-9 
-Refer to Figure 4-9.The movement from point A to point B on the graph represents

Accepted Answer

A)   an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)   an increase in the number of suppliers.
C)   a decrease in the price of a relevant input.
D)   an increase in the price of the good that is being supplied and the suppliers' responses to that price change.E) A) and D)
F) A) and C)

Question 18

If American cheese and cheddar cheese are substitutes,then which of the following would increase the demand for cheddar cheese?

Accepted Answer

A)   a decrease in the price of cheddar cheese
B)   an increase in the price of American cheese
C)   a decrease in the price of American cheese
D)   Both a and b are correct.E) C) and D)
F) A) and C)

Question 19

Table 4-3
 
-Refer to Table 4-3.If these are the only four buyers in the market,then the market quantity demanded at a price of $1 is

Accepted Answer

A)   4 units.
B)   7.75 units.
C)   14 units.
D)   31 units.E) A) and B)
F) A) and C)

Question 20

Matthew bakes apple pies that he sells at the local farmer's market.If the price of apples increases,the

Accepted Answer

A)   supply curve for Matthew's pies will increase.
B)   supply curve for Matthew's pies will decrease.
C)   demand curve for Matthew's pies will increase.
D)   demand curve for Matthew's pies will decrease.E) A) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

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Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Regarding Harry and Darby,whose demand for sandwiches conforms to the law of demand?

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"Other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises." This relationship between price and quantity demanded is referred to as

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

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Table 4-3 -Refer to Table 4-3.If these are the only four buyers in the market,then the market quantity demanded at a price of $1 is

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An example of a perfectly competitive market would be the market for

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If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

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If,at the current price,there is a shortage of a good,then

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If American cheese and cheddar cheese are substitutes,then which of the following would increase the demand for cheddar cheese?

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The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies,while all the other factors that affect how much consumers want to buy are held constant.

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Figure 4-13 -Refer to Figure 4-13.The shift from S to S' in the market for peaches could be caused by a(n)

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Which of these statements does not apply to market economies?

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Matthew bakes apple pies that he sells at the local farmer's market.If the price of apples increases,the

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If a decrease in income increases the demand for a good,then the good is a(n)

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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?

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Scenario 4-1 The following table shows the supply and demand schedules in a market. -Refer to Scenario 4-1.At a price of $2,will there be a surplus or shortage of units in this market?

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Figure 4-9 -Refer to Figure 4-9.The movement from point A to point B on the graph represents

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Table 4-3 -Refer to Table 4-3.For whom is the good a normal good?

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An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

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

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