Question 1

If a determinant of demand other than price changes,the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 2

If a good is inferior,then an increase in income will result in

Accepted Answer

A)   an increase in the demand for the good.
B)   a decrease in the demand for the good.
C)   a movement down and to the right along the demand curve for the good.
D)   a movement up and to the left along the demand curve for the good.E) None of the above
F) A) and C)

Question 3

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

Accepted Answer

A)   are direct policy tools used by government agencies to regulate the economy.
B)   illustrate when an market is in equilibrium,but they are not helpful when a market is out of equilibrium.
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 4

Figure 4-13 
-The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)   market harmony.
B)   coincidence.
C)   equivalence.
D)   equilibrium.E) All of the above
F) A) and D)

Question 5

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Accepted Answer

A)   total demand
B)   market demand
C)   equilibrium demand
D)   aggregate demandE) A) and B)
F) A) and C)

Question 6

A movement downward and to the left along a supply curve is called a(n)

Accepted Answer

A)   increase in supply.
B)   decrease in supply.
C)   decrease in quantity supplied.
D)   increase in quantity supplied.E) A) and C)
F) All of the above

Question 7

Suppose the United States had a short-term shortage of farmers.Which mechanisms would adjust to remove the shortage?

Accepted Answer

A)   The government would provide tax incentives to encourage people to become farmers.
B)   The government would subsidize the production of food.
C)   The prices of food and the wages of farmers would adjust.
D)   There are no mechanisms to remove the shortage.E) B) and D)
F) B) and C)

Question 8

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,an increase in the productivity of turkey farmers would cause a move from

Accepted Answer

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

Question 9

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,the equilibrium price rises,but the effect on the equilibrium quantity is ambiguous.

Accepted Answer

A) True 
 B)False

Question 10

At the equilibrium price,quantity demanded is equal to quantity supplied.

Accepted Answer

A) True 
 B)False

Question 11

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)   1 percent reduction in the quantity demanded of cigarettes.
B)   4 percent reduction in the quantity demanded of cigarettes.
C)   10 percent reduction in the quantity demanded of cigarettes.
D)   12 percent reduction in the quantity demanded of cigarettes.E) B) and D)
F) B) and C)

Question 12

The line that relates the price of a good and the quantity supplied of that good is called the supply

Accepted Answer

A)   schedule,and it usually slopes upward.
B)   schedule,and it usually slopes downward.
C)   curve,and it usually slopes upward.
D)   curve,and it usually slopes downward.E) All of the above
F) B) and C)

Question 13

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 14

When the price of a good is high,selling the good is profitable,and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 15

Table 4-5
 
-Refer to Table 4-5.If these are the only four sellers in the market,then when the price increases from $4 to $6,the market quantity supplied

Accepted Answer

A)   decreases by 10 units.
B)   decreases by 20 units.
C)   increases by 10 units.
D)   increases by 20 units.E) C) and D)
F) All of the above

Question 16

Figure 4-6 
-Refer to Figure 4-6.The movement from D' to D in the market for potato chips could be caused by a(n)

Accepted Answer

A)   decrease in the price of potato chips.
B)   decrease in income,assuming that potato chips are a normal good.
C)   announcement by the FDA that potato chips cause cancer.
D)   increase in the price of a pretzels.E) A) and D)
F) B) and D)

Question 17

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Accepted Answer

A) True 
 B)False

Question 18

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 4.
• The slope of the supply curve is 2.
Then there is currently a

Accepted Answer

A)   shortage of 6 sandwiches,and the equilibrium price of a sandwich is less than $3.00.
B)   shortage of 6 sandwiches,and the equilibrium price of a sandwich is $5.00.
C)   surplus of 6 sandwiches,and the equilibrium price of a sandwich is less than $3.00.
D)   surplus of 6 sandwiches,and the equilibrium price of a sandwich is $5.00.E) A) and B)
F) A) and C)

Question 19

Price will rise to eliminate a shortage.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4-5  
-Refer to Figure 4-5.Suppose that the federal government is concerned about obesity in the United States.Congress is considering two plans.One would require "junk food" producers to include warning labels on all junk food.The other would impose a tax on all products considered to be junk food.If the warning labels are successful,we could illustrate the plan as producing a movement from

Accepted Answer

A)   Point A to Point B in Panel 1.
B)   Point B to Point A in Panel 1.
C)   Point A to Point C in Panel 2.
D)   Point C to Point A in Panel 2.E) C) and D)
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-13 -The unique point at which the supply and demand curves intersect is called

Correct Answer
verified

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,the equilibrium price rises,but the effect on the equilibrium quantity is ambiguous.

Correct Answer
verified

Correct Answer
verified

A movement downward and to the left along a supply curve is called a(n)

Correct Answer
verified

The line that relates the price of a good and the quantity supplied of that good is called the supply

Correct Answer
verified

When the price of a good is high,selling the good is profitable,and so the quantity supplied is large.

Correct Answer
verified

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Correct Answer
verified

At the equilibrium price,quantity demanded is equal to quantity supplied.

Correct Answer
verified

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Correct Answer
verified

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

Correct Answer
verified

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,an increase in the productivity of turkey farmers would cause a move from

Correct Answer
verified

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Correct Answer
verified

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

Correct Answer
verified

Suppose the United States had a short-term shortage of farmers.Which mechanisms would adjust to remove the shortage?

Correct Answer
verified

If a good is inferior,then an increase in income will result in

Correct Answer
verified

Price will rise to eliminate a shortage.

Correct Answer
verified

Figure 4-6 -Refer to Figure 4-6.The movement from D' to D in the market for potato chips could be caused by a(n)

Correct Answer
verified

Table 4-5 -Refer to Table 4-5.If these are the only four sellers in the market,then when the price increases from $4 to $6,the market quantity supplied

Correct Answer
verified

If a determinant of demand other than price changes,the demand curve shifts.

Correct Answer
verified

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-13 -The unique point at which the supply and demand curves intersect is called

Correct AnswerverifiedShow Answer

Suppose the demand for calendars increases in November.At the same time,the price of the ink used in the production of calendars increases.In the market for calendars,the equilibrium price rises,but the effect on the equilibrium quantity is ambiguous.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A movement downward and to the left along a supply curve is called a(n)

Correct AnswerverifiedShow Answer

The line that relates the price of a good and the quantity supplied of that good is called the supply

Correct AnswerverifiedShow Answer

When the price of a good is high,selling the good is profitable,and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Correct AnswerverifiedShow Answer

At the equilibrium price,quantity demanded is equal to quantity supplied.

Correct AnswerverifiedShow Answer

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Correct AnswerverifiedShow Answer

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

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,an increase in the productivity of turkey farmers would cause a move from

Correct AnswerverifiedShow Answer

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose the United States had a short-term shortage of farmers.Which mechanisms would adjust to remove the shortage?

Correct AnswerverifiedShow Answer

If a good is inferior,then an increase in income will result in

Correct AnswerverifiedShow Answer

Price will rise to eliminate a shortage.

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6.The movement from D' to D in the market for potato chips could be caused by a(n)

Correct AnswerverifiedShow Answer

Table 4-5 -Refer to Table 4-5.If these are the only four sellers in the market,then when the price increases from $4 to $6,the market quantity supplied

Correct AnswerverifiedShow Answer

If a determinant of demand other than price changes,the demand curve shifts.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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