Question 1

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

Accepted Answer

A)   Both the equilibrium price and quantity would increase.
B)   Both the equilibrium price and quantity would decrease.
C)   The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous.
D)   The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous.E) A) and C)
F) B) and D)

Question 2

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)   0.
B)   15.
C)   25.
D)   30.E) B) and C)
F) A) and B)

Question 3

Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would

Accepted Answer

A)   decrease.
B)   increase.
C)   be unaffected.
D)   There is insufficient information given to answer the question.E) A) and B)
F) C) and D)

Question 4

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Accepted Answer

A)   a decrease in the price of mattresses
B)   a decrease in the price of custom wooden sleigh bed frames
C)   a change in consumer tastes away from wooden bedroom furniture
D)   a decrease in the number of people in the United StatesE) B) and C)
F) C) and D)

Question 5

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 all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Accepted Answer

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

Question 6

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

Question 7

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)

Accepted Answer

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

Question 8

Which of these statements best represents the law of supply?

Accepted Answer

A)   When input prices increase, sellers produce less of the good.
B)   When production technology improves, sellers produce less of the good.
C)   When the price of a good decreases, sellers produce less of the good.
D)   When sellers' supplies of a good increase, the price of the good increases.E) None of the above
F) A) and B)

Question 9

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Accepted Answer

A)   prices at and above the equilibrium price.
B)   prices at and below the equilibrium price.
C)   prices above and below the equilibrium price, but not at the equilibrium price.
D)   the equilibrium price but not above or below the equilibrium price.E) A) and D)
F) All of the above

Question 10

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Accepted Answer

The equilibrium quan...

Question 11

Which of the following sets of events must cause an increase in the price of a new house?

Accepted Answer

A)   higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future
B)   lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future
C)   lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future
D)   higher wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the futureE) None of the above
F) B) and D)

Question 12

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

Accepted Answer

A)   an increase in the price of wool shirts and a decrease in the price of raw cotton
B)   a decrease in the price of wool shirts and a decrease in the price of raw cotton
C)   an increase in the price of wool shirts and an increase in the price of raw cotton
D)   a decrease in the price of wool shirts and an increase in the price of raw cottonE) All of the above
F) A) and C)

Question 13

In a competitive market, the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)   a single buyer.
B)   a single seller.
C)   one buyer and one seller working together.
D)   all buyers and all sellers.E) B) and C)
F) A) and D)

Question 14

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

Question 15

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

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) None of the above
F) A) and D)

Question 16

Figure 4-10 
-Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Accepted Answer

A)   shift in the supply curve.
B)   decrease in the quantity supplied.
C)   increase in the quantity supplied.
D)   Both a and b are correct.E) A) and D)
F) B) and C)

Question 17

Equilibrium price must decrease when demand

Accepted Answer

A)   increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
B)   increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.
C)   decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
D)   decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.E) A) and B)
F) None of the above

Question 18

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Accepted Answer

A)   law of supply.
B)   law of demand.
C)   difference between normal and inferior goods.
D)   difference between substitute and complement goods.E) All of the above
F) A) and B)

Question 19

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

Question 20

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Accepted Answer

The curren...

Exam 4: The Market Forces of Supply and Demand

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 all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Correct Answer
verified

Which of the following sets of events must cause an increase in the price of a new house?

Correct Answer
verified

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)

Correct Answer
verified

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Correct Answer
verified
The equilibrium quan...
View Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Correct Answer
verified

Which of these statements best represents the law of supply?

Correct Answer
verified

Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Correct Answer
verified

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

Correct Answer
verified

Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would

Correct Answer
verified

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Correct Answer
verified
The curren...
View Answer

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

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

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

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

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

Correct Answer
verified

Equilibrium price must decrease when demand

Correct Answer
verified

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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 all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

Correct AnswerverifiedShow Answer

Which of the following sets of events must cause an increase in the price of a new house?

Correct AnswerverifiedShow Answer

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)

Correct AnswerverifiedShow Answer

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Correct AnswerverifiedThe equilibrium quan...View AnswerShow Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for mattresses?

Correct AnswerverifiedShow Answer

Which of these statements best represents the law of supply?

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

Correct AnswerverifiedShow Answer

Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would

Correct AnswerverifiedShow Answer

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Correct AnswerverifiedThe curren...View AnswerShow Answer

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

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

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

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Equilibrium price must decrease when demand

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The equilibrium quan...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The curren...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified