Question 1

Which of the following would cause price to increase?

Accepted Answer

A)  an increase in supply
B)  a decrease in demand
C)  a surplus of the good
D)  a shortage of the goodE) A) and B)
F) A) and C)

Question 2

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Accepted Answer

The equilibrium quan...

Question 3

According to the law of demand, when price increases the quantity demanded of a good

Accepted Answer

The answer of According to the law of demand, when...

Question 4

The law of demand is true for most goods in the economy.

Accepted Answer

A) True 
 B)False

Question 5

A downward-sloping demand curve illustrates

Accepted Answer

A)  that demand decreases over time.
B)  that prices fall over time.
C)  the relationship between income and quantity demanded.
D)  the law of demand.E) B) and C)
F) A) and D)

Question 6

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 7

Table 4-6 
-Refer to Table 4-6. 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 onlyE) A) and B)
F) All of the above

Question 8

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 9

Figure 4-14 
-Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Accepted Answer

A)  a decrease in supply
B)  an increase in supply
C)  a movement along the supply curve
D)  a decrease in demandE) C) and D)
F) A) and C)

Question 10

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows: 
-Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

Accepted Answer

A)  $10
B)  $15
C)  $20
D)  $25E) A) and B)
F) A) and C)

Question 11

A group of buyers and sellers of a particular good or service is called a(n)

Accepted Answer

A)  coalition.
B)  economy.
C)  market.
D)  competition.E) None of the above
F) B) and D)

Question 12

The market supply curve

Accepted Answer

A)  is found by vertically adding the individual supply curves.
B)  slopes downward.
C)  represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good.
D)  represents the sum of the quantities supplied by all the sellers at each price of the good.E) A) and D)
F) B) and C)

Question 13

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) All of the above

Question 14

Figure 4-16 
-Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by a(n)

Accepted Answer

A)  increase in the price of apartments which are a substitute for single-family houses for many people looking for a place to live.
B)  newly-formed expectation by house-builders that prices of houses will increase significantly in the next six months.
C)  decrease in the price of lumber.
D)  All of the above are correct.E) All of the above
F) A) and C)

Question 15

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) A) and B)
F) None of the above

Question 16

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 oranges in the United States?

Accepted Answer

A)  a freeze in Florida
B)  a technological advance that allows oranges to ripen faster
C)  a decrease in the price of apples
D)  an announcement by the FDA that oranges prevent heart diseaseE) B) and C)
F) A) and B)

Question 17

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 18

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed. 
-Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Accepted Answer

The answer of Table 4-15
The following table shows the number...

Question 19

In a market economy,

Accepted Answer

A)  supply determines demand and demand, in turn, determines prices.
B)  demand determines supply and supply, in turn, determines prices.
C)  the allocation of scarce resources determines prices and prices, in turn, determine supply and demand.
D)  supply and demand determine prices and prices, in turn, allocate the economy's scarce resources.E) C) and D)
F) B) and C)

Question 20

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A)  There is a shortage of oranges.
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes.
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges.
D)  All of the above are correct.E) B) and D)
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

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 oranges in the United States?

Correct Answer
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Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Correct Answer
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Which of the following would cause price to increase?

Correct Answer
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Which of the following events would cause the price of oranges to fall?

Correct Answer
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Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Correct Answer
verified

It is not possible for demand and supply to shift at the same time.

Correct Answer
verified

According to the law of demand, when price increases the quantity demanded of a good

Correct Answer
verified

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Correct Answer
verified
The equilibrium quan...
View Answer

A group of buyers and sellers of a particular good or service is called a(n)

Correct Answer
verified

The market supply curve

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by a(n)

Correct Answer
verified

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Correct Answer
verified

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Correct Answer
verified

In a market economy,

Correct Answer
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The law of demand is true for most goods in the economy.

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

Table 4-6 -Refer to Table 4-6. Which supply schedules obey the law of supply?

Correct Answer
verified

A downward-sloping demand curve illustrates

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

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 oranges in the United States?

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14. Which of the following best describes the movement from E1 to E2?

Correct AnswerverifiedShow Answer

Which of the following would cause price to increase?

Correct AnswerverifiedShow Answer

Which of the following events would cause the price of oranges to fall?

Correct AnswerverifiedShow Answer

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If only Brook Mountain and Cascade Waters operate in this market, what is the market quantity supplied when the price is $3.00 per case?

Correct AnswerverifiedShow Answer

It is not possible for demand and supply to shift at the same time.

Correct AnswerverifiedShow Answer

According to the law of demand, when price increases the quantity demanded of a good

Correct AnswerverifiedShow Answer

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Correct AnswerverifiedThe equilibrium quan...View AnswerShow Answer

A group of buyers and sellers of a particular good or service is called a(n)

Correct AnswerverifiedShow Answer

The market supply curve

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by a(n)

Correct AnswerverifiedShow Answer

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Correct AnswerverifiedShow Answer

In a market economy,

Correct AnswerverifiedShow Answer

The law of demand is true for most goods in the economy.

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

Table 4-6 -Refer to Table 4-6. Which supply schedules obey the law of supply?

Correct AnswerverifiedShow Answer

A downward-sloping demand curve illustrates

Correct AnswerverifiedShow Answer

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The equilibrium quan...
View Answer

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