Question 1

Table 4-3
 
-Refer to Table 4-3.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

Accepted Answer

A)   3 units.
B)   11 units.
C)   25 units.
D)   44 units.E) None of the above
F) B) and C)

Question 2

Table 4-1
 
-Refer to Table 4-1.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) C) and D)
F) None of the above

Question 3

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

Accepted Answer

A)   a substitute good.
B)   a complementary good.
C)   a normal good.
D)   an inferior good.E) A) and C)
F) None of the above

Question 4

When drawing a demand curve,

Accepted Answer

A)   demand is on the vertical axis and price is on the horizontal axis.
B)   quantity demanded is on the vertical axis and price is on the horizontal axis.
C)   price is on the vertical axis and demand is on the horizontal axis.
D)   price is on the vertical axis and quantity demanded is on the horizontal axis.E) A) and B)
F) B) and C)

Question 5

Figure 4-11 
-Refer to Figure 4-11.At a price of $4,which of the following is correct?

Accepted Answer

A)   there is a surplus of 3 units
B)   there is a surplus of 6 units
C)   there is a shortage of 3 units
D)   there is a shortage of 6 unitsE) A) and D)
F) All of the above

Question 6

Table 4-7
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-7.Suppose Charlie,Maxine,and Quinn are the only demanders of sandwiches and that the market demand violates the law of demand.Then,in the table,

Accepted Answer

A)   x5.
B)   x5
C)   x7.
D)   x10.E) B) and C)
F) None of the above

Question 7

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 8

The two words most often used by economists are

Accepted Answer

A)   prices and quantities.
B)   resources and allocation.
C)   supply and demand.
D)   efficiency and equity.E) A) and D)
F) B) and D)

Question 9

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 B)
F) A) and C)

Question 10

A technological advance will shift the

Accepted Answer

A)   supply curve to the right.
B)   supply curve to the left.
C)   demand curve to the right.
D)   demand curve to the left.E) A) and B)
F) A) and C)

Question 11

Figure 4-10 
-Refer to Figure 4-10.At a price of $20,which of the following statements is not correct?

Accepted Answer

A)   The market is in equilibrium.
B)   Equilibrium price is equal to equilibrium quantity.
C)   There is no pressure for price to change.
D)   The quantity of the good that is bought and sold is 600.E) B) and D)
F) B) and C)

Question 12

An increase in quantity demanded

Accepted Answer

A)   results in a movement downward and to the right along a fixed demand curve.
B)   results in a movement upward and to the left along a fixed demand curve.
C)   shifts the demand curve to the left.
D)   shifts the demand curve to the right.E) A) and C)
F) A) and B)

Question 13

If the supply of a product increases,then we would expect

Accepted Answer

A)   equilibrium price to increase and equilibrium quantity to decrease.
B)   equilibrium price to decrease and equilibrium quantity to increase.
C)   equilibrium price and equilibrium quantity both to increase.
D)   equilibrium price and equilibrium quantity both to decrease.E) A) and C)
F) A) and D)

Question 14

Which of the following changes would not shift the supply curve for a good or service?

Accepted Answer

A)   a change in technology
B)   a change in the price of the good or service
C)   a change in expectations about the future price of the good or service
D)   a change in input pricesE) B) and C)
F) C) and D)

Question 15

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following might cause the demand curve for an inferior good to shift to the left?

Accepted Answer

A)   a decrease in income
B)   an increase in the price of a substitute
C)   an increase in the price of a complement
D)   None of the above is correct.E) B) and D)
F) A) and B)

Question 17

Which of the following events will definitely cause equilibrium quantity to rise?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increaseE) A) and D)
F) B) and C)

Question 18

Sellers respond to a surplus by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4-14
Panel (a) Panel (b)    Panel (c) Panel (d)   
-Refer to Figure 4-14.Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) B) and C)
F) None of the above

Question 20

A weaker demand together with a stronger supply would necessarily result in

Accepted Answer

A)   a lower price.
B)   a higher price.
C)   an increase in equilibrium quantity.
D)   a decrease in equilibrium quantity.E) All of the above
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

Table 4-3 -Refer to Table 4-3.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

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Table 4-1 -Refer to Table 4-1.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 increase in quantity demanded

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A supply curve slopes upward because

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When drawing a demand curve,

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Which of the following changes would not shift the supply curve for a good or service?

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Figure 4-11 -Refer to Figure 4-11.At a price of $4,which of the following is correct?

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Table 4-7 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-7.Suppose Charlie,Maxine,and Quinn are the only demanders of sandwiches and that the market demand violates the law of demand.Then,in the table,

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The two words most often used by economists are

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Which of the following might cause the demand curve for an inferior good to shift to the left?

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The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

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Which of the following events will definitely cause equilibrium quantity to rise?

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

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A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

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Figure 4-10 -Refer to Figure 4-10.At a price of $20,which of the following statements is not correct?

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Sellers respond to a surplus by cutting their prices.

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Figure 4-14 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-14.Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

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A technological advance will shift the

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If the supply of a product increases,then we would expect

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A weaker demand together with a stronger supply would necessarily result in

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