Question 1

The difference between a supply schedule and a supply curve is that a supply schedule

Accepted Answer

A)   incorporates demand and a supply curve does not.
B)   incorporates profit and a supply curve does not.
C)   can shift,but a supply curve cannot shift.
D)   is a table,and a supply curve is drawn on a graph.E) All of the above
F) B) and C)

Question 2

Figure 4-11

-Refer to Figure 4-11.If these are the only two sellers in the market,then the market quantity supplied at a price of $4 is

Accepted Answer

A)   6 units.
B)   7 units.
C)   8 units.
D)   14 units.E) C) and D)
F) All of the above

Question 3

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. A to DB. B)  DB to DA. C)  x to y. D)  y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-19.All else equal,buyers expecting turkey to be more expensive in the future would cause a current move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) All of the above
F) B) and C)

Question 4

The equilibrium price is the same as the market-clearing price.

Accepted Answer

A) True 
 B)False

Question 5

Other things equal,when the price of a good falls,the

Accepted Answer

A)   quantity supplied of the good increases.
B)   supply decreases.
C)   quantity supplied of the good decreases.
D)   demand increases.E) A) and C)
F) B) and C)

Question 6

If the supply of tennis balls,a complement to tennis racquets,decreases,what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

Accepted Answer

The equilibrium pric...

Question 7

When the market price is above the equilibrium price,suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 8

Equilibrium quantity must increase when demand

Accepted Answer

A)   increases and supply does not change,when demand does not change and supply increases,and when both demand and supply increase.
B)   increases and supply does not change,when demand does not change and supply increases,and when both demand and supply decrease.
C)   decreases and supply does not change,when demand does not change and supply decreases,and when both demand and supply increase.
D)   decreases and supply does not change,when demand does not change and supply decreases,and when both demand and supply decrease.E) All of the above
F) B) and C)

Question 9

Figure 4-12  
-The supply curve for portable charcoal grills shifts

Accepted Answer

A)   only when production technology changes.
B)   when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes.
C)   when any determinant of the supply of portable charcoal grills changes.
D)   only when the number of sellers of portable charcoal grills changes.E) B) and D)
F) A) and D)

Question 10

In a market economy,supply and demand are important because they

Accepted Answer

A)   play a critical role in the allocation of the economy's scarce resources.
B)   determine how much of each good gets produced.
C)   can be used to predict the impact on the economy of various events and policies.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 11

Figure 4-22

-Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity supplied?

Accepted Answer

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

Question 12

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Accepted Answer

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

Question 13

An increase in the price of ink will shift the supply curve for pens to the left.

Accepted Answer

A) True 
 B)False

Question 14

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 C)
F) C) and D)

Question 15

When the market price is below the equilibrium price,suppliers are unable to sell all they want to sell.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Figure 4-17 
-Refer to Figure 4-17.If the price is $25,then there would be an excess

Accepted Answer

A)   supply of 100 units,and price would fall.
B)   supply of 300 units,and price would fall.
C)   demand of 100 units,and price would fall.
D)   demand of 300 units,and price would fall.E) A) and D)
F) None of the above

Question 18

During the last few decades in the United States,health officials have argued that eating too much beef might be harmful to human health.As a result,there has been a significant decrease in the amount of beef produced.Which of the following best explains the decrease in production?

Accepted Answer

A)   Beef producers,concerned about the health of their customers,decided to produce relatively less beef.
B)   Government officials,concerned about consumer health,ordered beef producers to produce relatively less beef.
C)   Individual consumers,concerned about their own health,decreased their demand for beef,which lowered the equilibrium price of beef,making it less attractive to produce.
D)   Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.E) C) and D)
F) B) and C)

Question 19

Demand refers to the amount buyers wish to buy,whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the least likely to be a competitive market?

Accepted Answer

A)   ice cream
B)   soybeans
C)   cable television
D)   new housesE) B) and C)
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-12 -The supply curve for portable charcoal grills shifts

Correct AnswerverifiedShow Answer

When the market price is below the equilibrium price,suppliers are unable to sell all they want to sell.

Correct AnswerverifiedShow Answer

The equilibrium price is the same as the market-clearing price.

Correct AnswerverifiedShow Answer

Other things equal,when the price of a good falls,the

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17.If the price is $25,then there would be an excess

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

The difference between a supply schedule and a supply curve is that a supply schedule

Correct AnswerverifiedShow Answer

Which of the following is the least likely to be a competitive market?

Correct AnswerverifiedShow Answer

Figure 4-11 -Refer to Figure 4-11.If these are the only two sellers in the market,then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

During the last few decades in the United States,health officials have argued that eating too much beef might be harmful to human health.As a result,there has been a significant decrease in the amount of beef produced.Which of the following best explains the decrease in production?

Correct AnswerverifiedShow Answer

When the market price is above the equilibrium price,suppliers are unable to sell all they want to sell.

Correct AnswerverifiedShow Answer

An increase in the price of ink will shift the supply curve for pens to the left.

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,buyers expecting turkey to be more expensive in the future would cause a current move from

Correct AnswerverifiedShow Answer

Equilibrium quantity must increase when demand

Correct AnswerverifiedShow Answer

The market supply curve

Correct AnswerverifiedShow Answer

Demand refers to the amount buyers wish to buy,whereas the quantity demanded refers to the position of the demand curve.

Correct AnswerverifiedShow Answer

In a market economy,supply and demand are important because they

Correct AnswerverifiedShow Answer

If the supply of tennis balls,a complement to tennis racquets,decreases,what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

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

Figure 4-22 -Refer to Figure 4-22.Which of the four panels illustrates a decrease in quantity supplied?

Correct AnswerverifiedShow 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

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
The equilibrium pric...
View Answer

Correct Answer
verified

Correct Answer
verified