Question 1

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, a large number of people becoming vegetarians would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and D)
F) B) and C)

Question 2

A supply schedule is a table that shows the relationship between

Accepted Answer

A)   price and quantity supplied.
B)   input costs and quantity supplied.
C)   quantity demanded and quantity supplied.
D)   profit and quantity supplied.E) A) and D)
F) A) and C)

Question 3

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

Question 4

Table 4-16
The following table shows the supply and demand schedules in a market.
 
-Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 5

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

Accepted Answer

A) True 
 B)False

Question 6

A competitive market is a market in which

Accepted Answer

A)   an auctioneer helps set prices and arrange sales.
B)   there are only a few sellers.
C)   the forces of supply and demand do not apply.
D)   no individual buyer or seller has any significant impact on the market price.E) B) and D)
F) B) and C)

Question 7

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Accepted Answer

A)   will increase but not until the end of the year.
B)   increases today.
C)   decreases as she looks for a substitute good.
D)   shifts left today.E) A) and C)
F) B) and D)

Question 8

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

Accepted Answer

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

Question 9

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 golf balls in the United States?

Accepted Answer

A)   a decrease in the price of golf balls
B)   an increase in the price of green fees
C)   an expectation by buyers that their incomes will increase in the very near future
D)   a change in consumer tastes away from golf and toward tennisE) C) and D)
F) None of the above

Question 10

Figure 4-29 
-Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Accepted Answer

The answer of Figure 4-29 
-Refer to Figure 4-29. If...

Question 11

If the demand for a product decreases, then we would expect equilibrium price

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

Which of the following would shift the demand curve for gasoline to the right?

Accepted Answer

A)   a decrease in the price of gasoline
B)   an increase in consumer income, assuming gasoline is a normal good
C)   an increase in the price of cars, a complement for gasoline
D)   a decrease in the expected future price of gasolineE) B) and C)
F) A) and C)

Question 14

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) All of the above
F) A) and B)

Question 15

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-27
Panel a)  Panel b) 
   Panel c)  Panel d) 
  
-Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

Accepted Answer

A)   Panel a) 
B)   Panel b) 
C)   Panel c) 
D)   Panel d) E) A) and B)
F) B) and C)

Question 17

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 19

A decrease in quantity demanded

Accepted Answer

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

Question 20

Figure 4-19 
-Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)   $10 and 30 units.
B)   $10 and 50 units.
C)   $10 and 70 units.
D)   $4 and 50 units.E) B) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

Figure 4-19 -Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

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Figure 4-27 Panel a) Panel b) Panel c) Panel d) -Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

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A competitive market is a market in which

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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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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 golf balls in the United States?

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When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

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Sellers respond to a shortage by cutting their prices.

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

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Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

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Figure 4-29 -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

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

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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 $6, is there a shortage or surplus, and how large is the shortage/surplus?

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Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

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Which of the following would shift the demand curve for gasoline to the right?

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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, a large number of people becoming vegetarians would cause a move from

Correct AnswerverifiedShow Answer

A supply schedule is a table that shows the relationship between

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?

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An increase in the price of pizza will shift the demand curve for pizza to the left.

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If the demand for a product decreases, then we would expect equilibrium price

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A decrease in quantity demanded

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There is a...
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