Question 1

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Accepted Answer

A)  a decrease in the price of golf balls
B)  an increase in the price of green fees
C)  an expectation by buyers that their incomes will increase in the very near future
D)  a change in consumer tastes away from golf and toward tennisE) All of the above
F) C) and D)

Question 2

A movement upward and to the left along a demand curve is called a(n)

Accepted Answer

A)  increase in demand.
B)  decrease in demand.
C)  decrease in quantity demanded.
D)  increase in quantity demanded.E) C) and D)
F) A) and D)

Question 3

The market demand curve

Accepted Answer

A)  is the sum of all individual demand curves.
B)  is the demand curve for every product in an industry.
C)  shows the average quantity demanded by individual demanders at each price.
D)  is always flatter than an individual demand curve.E) A) and C)
F) A) and B)

Question 4

Which of the following is not a determinant of demand?

Accepted Answer

A)  the price of a resource that is used to produce the good
B)  the price of a complementary good
C)  the price of the good next month
D)  the price of a substitute goodE) None of the above
F) All of the above

Question 5

The law of supply states that, other things equal, when the price of a good rises, the quantity supplied of the good falls.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Accepted Answer

A) True 
 B)False

Question 8

A supply curve slopes upward because

Accepted Answer

A)  as more is produced, total cost of production falls.
B)  an increase in input prices increases supply.
C)  the quantity supplied of most goods and services increases over time.
D)  an increase in price gives producers an incentive to supply a larger quantity.E) A) and C)
F) C) and D)

Question 9

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Accepted Answer

A) True 
 B)False

Question 10

Table 4-9 
-Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

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

Question 11

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased?

Accepted Answer

A)  Price will fall, and the effect on quantity is ambiguous.
B)  Price will rise, and the effect on quantity is ambiguous.
C)  Quantity will fall, and the effect on price is ambiguous.
D)  Quantity will rise, and the effect on price is ambiguous.E) All of the above
F) C) and D)

Question 12

The following table contains a demand schedule for a good.  If the law of demand applies to this good, then Q1 could be

Accepted Answer

A)  0.
B)  100.
C)  200.
D)  400.E) None of the above
F) B) and D)

Question 13

Figure 4-9
Panel (a) 
Panel (b)   
-Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (b) , the arrows are consistent with which of the following events?

Accepted Answer

A)  an increase in the price of cigarettes
B)  placing a tax on cigarettes
C)  the prohibition of cigarette advertisements on television
D)  decreasing the price of marijuana, given that tobacco and marijuana are complementsE) A) and D)
F) A) and C)

Question 14

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

Question 15

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

Question 16

Table 4-3 
-Refer to Table 4-3. Whose demand does not obey the law of demand?

Accepted Answer

A)  Bert's
B)  Ernie's
C)  Grover's
D)  Oscar'sE) B) and D)
F) A) and C)

Question 17

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. If the warning labels are successful, we could illustrate the plan 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 D)
F) A) and B)

Question 18

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

Question 19

Table 4-13
The demand schedule below pertains to sandwiches demanded per week. 
-Refer to Table 4-13. 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) B) and D)
F) B) and C)

Question 20

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

Exam 4: The Market Forces of Supply and Demand

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.

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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Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (b) , the arrows are consistent with which of the following events?

Correct Answer
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Correct Answer
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The market demand curve

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

Correct Answer
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Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Correct Answer
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The following table contains a demand schedule for a good. If the law of demand applies to this good, then Q1 could be

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Correct Answer
verified

A movement upward and to the left along a demand curve is called a(n)

Correct Answer
verified

When the price of a good or service changes,

Correct Answer
verified

A supply curve slopes upward because

Correct Answer
verified

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct Answer
verified

The law of supply states that, other things equal, when the price of a good rises, the quantity supplied of the good falls.

Correct Answer
verified

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct Answer
verified

Which of the following is not a determinant of demand?

Correct Answer
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Correct Answer
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Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Correct Answer
verified

Table 4-3 -Refer to Table 4-3. Whose demand does not obey the law of demand?

Correct Answer
verified

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (b) , the arrows are consistent with which of the following events?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The market demand curve

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

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Correct AnswerverifiedShow Answer

The following table contains a demand schedule for a good. If the law of demand applies to this good, then Q1 could be

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Correct AnswerverifiedShow Answer

A movement upward and to the left along a demand curve is called a(n)

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

A supply curve slopes upward because

Correct AnswerverifiedShow Answer

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct AnswerverifiedShow Answer

The law of supply states that, other things equal, when the price of a good rises, the quantity supplied of the good falls.

Correct AnswerverifiedShow Answer

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of demand?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 4-9 -Refer to Table 4-9. Which combination would produce a decrease in equilibrium price and an indeterminate change in equilibrium quantity?

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3. Whose demand does not obey the law of demand?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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