Question 1

When the price of peaches changes, the demand curve for peaches

Accepted Answer

A)   shifts because the price of peaches is measured on the vertical axis of the graph.
B)   shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph.
C)   does not shift because the price of peaches is measured on the vertical axis of the graph.
D)   does not shift because the price of peaches is measured on the horizontal axis of the graph.E) A) and B)
F) None of the above

Question 2

The law of demand states that, other things equal, an increase in

Accepted Answer

A)   price causes quantity demanded to increase.
B)   price causes quantity demanded to decrease.
C)   quantity demanded causes price to increase.
D)   quantity demanded causes price to decrease.E) A) and D)
F) B) and C)

Question 3

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Accepted Answer

A) True 
 B)False

Question 4

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 5

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Accepted Answer

The demand...

Question 6

In a competitive market, each seller has limited control over the price of his product because

Accepted Answer

A)   other sellers are offering similar products.
B)   buyers exert more control over the price than do sellers.
C)   these markets are highly regulated by the government.
D)   sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.E) B) and D)
F) B) and C)

Question 7

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Accepted Answer

A)   the ticket price is above the equilibrium price.
B)   the ticket price is below the equilibrium price.
C)   the ticket price is at the equilibrium price.
D)   nothing about the equilibrium price.E) A) and D)
F) B) and D)

Question 8

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

Accepted Answer

A)   income demand.
B)   equilibrium demand.
C)   complementary demand.
D)   market demand.E) All of the above
F) B) and C)

Question 9

Table 4-1
 
-Refer to Table 4-1. If the market consists of Michelle and Laura 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) None of the above
F) All of the above

Question 10

Given the table below, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity.
  
a. What is the equilibrium price and the equilibrium quantity?
b. 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.
c. 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. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b. The equilibrium price Pe) is $4 a...

Question 11

When it comes to people's tastes, economists generally believe that

Accepted Answer

A)   tastes are based on forces that are well within the realm of economics.
B)   tastes are based on historical and psychological forces that are beyond the realm of economics.
C)   tastes can only be studied through well-constructed, real-life models.
D)   because tastes do not directly affect demand, there is little need to explain people's tastes.E) B) and C)
F) C) and D)

Question 12

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

Question 13

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation
     , where  is the quantity demanded and is the price. Also, suppose the supply schedule can be represented by the equation , where is the quantity supplied.
-Refer to Scenario 4-1. Suppose the price is currently equal to 10 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 14

In a competitive market, the price of a product

Accepted Answer

A)   is determined by buyers, and the quantity of the product produced is determined by sellers.
B)   is determined by sellers, and the quantity of the product produced is determined by buyers.
C)   and the quantity of the product produced are both determined by sellers.
D)   None of the above is correct.E) B) and D)
F) C) and D)

Question 15

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) B) and C)

Question 16

If the number of buyers in a market decreases, then

Accepted Answer

A)   demand will increase.
B)   demand will decrease.
C)   supply will increase.
D)   supply will decrease.E) All of the above
F) C) and D)

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 B)
F) None of the above

Question 18

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Accepted Answer

A)   increases.
B)   decreases.
C)   remains constant, but we observe a movement downward and to the right along the demand curve.
D)   remains constant, but we observe a movement upward and to the left along the demand curve.E) A) and B)
F) None of the above

Question 19

If the demand for a good falls when income falls, then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 20

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 $2 is

Accepted Answer

A)   0 units.
B)   3.5 units.
C)   12 units.
D)   14 units.E) None of the above
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

In a competitive market, each seller has limited control over the price of his product because

Correct Answer
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If the demand for a good falls when income falls, then the good is called an inferior good.

Correct Answer
verified

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Correct Answer
verified

When it comes to people's tastes, economists generally believe that

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
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a. b. The equilibrium price Pe) is $4 a...
View Answer

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by

Correct Answer
verified

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Correct Answer
verified

The law of demand states that, other things equal, an increase in

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

Correct Answer
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There is a...
View Answer

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct Answer
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The demand...
View Answer

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

Correct Answer
verified

A market supply curve is determined by

Correct Answer
verified

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct Answer
verified

In a competitive market, the price of a product

Correct Answer
verified

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Correct Answer
verified

When the price of peaches changes, the demand curve for peaches

Correct Answer
verified

If the number of buyers in a market decreases, then

Correct Answer
verified

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 $2 is

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

In a competitive market, each seller has limited control over the price of his product because

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls, then the good is called an inferior good.

Correct AnswerverifiedShow Answer

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Correct AnswerverifiedShow Answer

When it comes to people's tastes, economists generally believe that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverifieda. b. The equilibrium price Pe) is $4 a...View AnswerShow Answer

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Correct AnswerverifiedShow Answer

The law of demand states that, other things equal, an increase in

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

Correct AnswerverifiedThere is a...View AnswerShow Answer

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

A market supply curve is determined by

Correct AnswerverifiedShow Answer

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct AnswerverifiedShow Answer

In a competitive market, the price of a product

Correct AnswerverifiedShow Answer

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Correct AnswerverifiedShow Answer

When the price of peaches changes, the demand curve for peaches

Correct AnswerverifiedShow Answer

If the number of buyers in a market decreases, then

Correct AnswerverifiedShow Answer

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 $2 is

Correct AnswerverifiedShow Answer

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a. b. The equilibrium price Pe) is $4 a...
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There is a...
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The demand...
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