Question 1

Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-10. If the four suppliers listed are the only suppliers in this market and the market quantity demanded is 500 cases when the price is $5.00, which of the following statements is correct?

Accepted Answer

A)   The market is in equilibrium at a price of $5.00.
B)   There is a surplus of 100 cases at a price of $5.00.
C)   There is a shortage of 100 cases at a price of $5.00.
D)   There is a shortage of 50 cases at a price of $5.00.E) B) and C)
F) None of the above A

Question 2

Table 4-1
 
-Refer to Table 4-1. If the market consists of Laura and Hillary 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) A) and B)
F) A) and C)

Question 3

Table 4-11
 
-Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Accepted Answer

A)   $2 and 50 units.
B)   $6 and 30 units.
C)   $6 and 60 units.
D)   $12 and 30 units.E) All of the above
F) C) and D) B

Question 4

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following events must cause equilibrium quantity to fall?

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 B)
F) A) and C)

Question 6

Which of the following events must result in a lower price in the market for Snickers?

Accepted Answer

A)   Demand for Snickers increases, and supply of Snickers decreases.
B)   Demand for Snickers and supply of Snickers both decrease.
C)   Demand for Snickers decreases, and supply of Snickers increases.
D)   Demand for Snickers and supply of Snickers both increaseE) C) and D)
F) B) and D)

Question 7

Figure 4-21 
-Refer to Figure 4-21. At a price of $4, there is a

Accepted Answer

A)   surplus of 1 unit.
B)   surplus of 3 units.
C)   shortage of 1 unit.
D)   shortage of 3 units.E) A) and C)
F) B) and C)

Question 8

Figure 4-3
Consumer 1 Consumer 2
  
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Accepted Answer

A)   0 units.
B)   5 units.
C)   8.33 units.
D)   25 units.E) A) and B)
F) A) and C) C

Question 9

Figure 4-18 
-Refer to Figure 4-18. At the equilibrium price,

Accepted Answer

A)   200 units would be supplied and demanded.
B)   400 units would be supplied and demanded.
C)   600 units would be supplied and demanded.
D)   600 units would be supplied, but only 200 would be demanded.E) A) and B)
F) A) and C)

Question 10

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Accepted Answer

The answer of Since individual buyers and individual sellers in...

Question 11

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 12

Table 4-8
 
-Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

Accepted Answer

A)   decrease by 6 units.
B)   decrease by 12 units.
C)   increase by 6 units.
D)   increase by 12 units.E) All of the above
F) B) and D)

Question 13

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 14

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Accepted Answer

A)   demand for bicycle assembly workers will increase.
B)   supply of bicycles will shift to the right.
C)   supply of bicycles will shift to the left.
D)   firm must increase output to maintain profit levels.E) C) and D)
F) B) and D)

Question 15

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Accepted Answer

A)   Students would purchase fewer than 750 cups per day.
B)   Student would continue to purchase 750 cups per day.
C)   Students would purchase more than 750 cups per day.
D)   We do not have enough information to answer this question.E) A) and D)
F) C) and D)

Question 16

Figure 4-8 
-Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless keyboards, a complementary good, increases. Which of the following changes would occur?

Accepted Answer

A)   a movement along D2 from point A to point B
B)   a movement along D2 from point B to point A
C)   a shift from D1 to D2
D)   a shift from D2 to D1E) B) and D)
F) A) and B)

Question 17

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

Accepted Answer

A)   an increase in consumer income
B)   a decrease in consumer income
C)   greater government restrictions on agricultural chemicals
D)   fewer government restrictions on agricultural chemicalsE) A) and B)
F) None of the above

Question 18

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)   the government makes shortages illegal.
B)   resources are abundant in market economies.
C)   prices adjust to eliminate shortages.
D)   quantity supplied is always greater than quantity demanded in market economies.E) A) and B)
F) None of the above

Question 19

If suppliers expect the price of their product to fall in the future, then they will

Accepted Answer

A)   decrease supply now.
B)   increase supply now.
C)   decrease supply in the future but not now.
D)   increase supply in the future but not now.E) A) and D)
F) A) and C)

Question 20

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

Correct Answer
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A

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

Correct Answer
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Table 4-11 -Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Correct Answer
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B

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Correct Answer
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Which of the following events must cause equilibrium quantity to fall?

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Which of the following events must result in a lower price in the market for Snickers?

Correct Answer
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Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

Correct Answer
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Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Correct Answer
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C

Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Correct Answer
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Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Correct Answer
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Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
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There is a...
View Answer

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

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

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct Answer
verified

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Correct Answer
verified

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless keyboards, a complementary good, increases. Which of the following changes would occur?

Correct Answer
verified

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

Correct Answer
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There is no shortage of scarce resources in a market economy because

Correct Answer
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If suppliers expect the price of their product to fall in the future, then they will

Correct Answer
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Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

Table 4-11 -Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Correct AnswerverifiedB

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium quantity to fall?

Correct AnswerverifiedShow Answer

Which of the following events must result in a lower price in the market for Snickers?

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. At a price of $4, there is a

Correct AnswerverifiedShow Answer

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

Correct AnswerverifiedC

Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Correct AnswerverifiedShow Answer

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price decreases from $12 to $9, quantity supplied will

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

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct AnswerverifiedShow Answer

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. If the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Correct AnswerverifiedShow Answer

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for laptop computers. Suppose the price of wireless keyboards, a complementary good, increases. Which of the following changes would occur?

Correct AnswerverifiedShow Answer

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

Correct AnswerverifiedShow Answer

There is no shortage of scarce resources in a market economy because

Correct AnswerverifiedShow Answer

If suppliers expect the price of their product to fall in the future, then they will

Correct AnswerverifiedShow Answer

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct AnswerverifiedShow Answer

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C

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There is a...
View Answer

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