Question 1

The following table contains a demand schedule for a good.  If the law of demand applies to this good, then Q1 could be

Accepted Answer

A)  0.
B)  100.
C)  200.
D)  400.E) A) and C)
F) A) and D)

Question 2

A decrease in the price of a good would

Accepted Answer

A)  increase the supply of the good.
B)  increase the quantity demanded of the good.
C)  give producers an incentive to produce more to keep profits from falling.
D)  shift the supply curve for the good to the left.E) A) and C)
F) None of the above

Question 3

Figure 4-4
Yasmine
Mercedes  
-Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Accepted Answer

A)  6 units.
B)  9 units.
C)  12 units.
D)  15 units.E) A) and B)
F) C) and D)

Question 4

Table 4-13
The demand schedule below pertains to sandwiches demanded per week. 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following:
• x = 2.
• The current price of a sandwich is $5.00.
• The market quantity supplied of sandwiches is 10.
• The law of supply applies to the supply of sandwiches.
Then there is a

Accepted Answer

A)  shortage of 5 sandwiches, and the price would be expected to rise from its current level of $5.00.
B)  shortage of 5 sandwiches, and the price would be expected to fall from its current level of $5.00.
C)  surplus of 5 sandwiches, and the price would be expected to rise from its current level of $5.00.
D)  surplus of 5 sandwiches, and the price would be expected to fall from its current level of $5.00.E) B) and C)
F) None of the above

Question 5

Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause a(n)

Accepted Answer

A)  decrease in the demand for sugar and a decrease in the quantity supplied of sugar.
B)  decrease in the supply of sugar and a decrease in the quantity demanded of sugar.
C)  decrease in the equilibrium price of sugar and an increase in the equilibrium quantity of sugar.
D)  increase in the equilibrium price of sugar and a decrease in the equilibrium quantity of sugar.E) All of the above
F) None of the above

Question 6

Suppose that Amanda receives a pay increase. We would expect

Accepted Answer

A)  to observe Amanda moving down and to the right along her given demand curve.
B)  Amanda's demand for inferior goods to decrease.
C)  Amanda's demand for each of two goods that are complements to increase.
D)  Amanda's demand for normal goods to decrease.E) A) and C)
F) C) and D)

Question 7

Table 4-13
The demand schedule below pertains to sandwiches demanded per week. 
-Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Accepted Answer

A)  -3.
B)  -1/3.
C)  1/3.
D)  3.E) A) and B)
F) All of the above

Question 8

The demand curve is the upward-sloping line relating price and quantity demanded.

Accepted Answer

A) True 
 B)False

Question 9

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 10

An increase in the price of a good will

Accepted Answer

A)  increase demand.
B)  decrease demand.
C)  increase quantity demanded.
D)  decrease quantity demanded.E) None of the above
F) All of the above

Question 11

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

Individual demand curves are summed vertically to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 14

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Accepted Answer

The answer of Fill in the table below, showing whether...

Question 15

An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 16

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)  Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.E) B) and C)
F) B) and D)

Question 17

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

Question 18

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Accepted Answer

A) True 
 B)False

Question 19

The sum of all the individual demand curves for a product is called

Accepted Answer

A)  income demand.
B)  equilibrium demand.
C)  complementary demand.
D)  market demand.E) None of the above
F) B) and C)

Question 20

A demand schedule is a table that shows the relationship between

Accepted Answer

A)  quantity demanded and quantity supplied.
B)  income and quantity demanded.
C)  price and quantity demanded.
D)  price and income.E) None of the above
F) C) and D)

Exam 4: The Market Forces of Supply and Demand

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

Correct Answer
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Suppose that Amanda receives a pay increase. We would expect

Correct Answer
verified

Correct Answer
verified

Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Correct Answer
verified

An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Correct Answer
verified

The demand curve is the upward-sloping line relating price and quantity demanded.

Correct Answer
verified

The sum of all the individual demand curves for a product is called

Correct Answer
verified

A demand schedule is a table that shows the relationship between

Correct Answer
verified

A decrease in the price of a good would

Correct Answer
verified

Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause a(n)

Correct Answer
verified

The following table contains a demand schedule for a good. If the law of demand applies to this good, then Q1 could be

Correct Answer
verified

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct Answer
verified

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Correct Answer
verified

Individual demand curves are summed vertically to obtain the market demand curve.

Correct Answer
verified

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Correct Answer
verified

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?

Correct Answer
verified

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Correct Answer
verified

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Correct Answer
verified

An increase in the price of a good will

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

Correct AnswerverifiedShow Answer

Suppose that Amanda receives a pay increase. We would expect

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the market. When the market price falls from $12 to $6, the quantity demanded increases by

Correct AnswerverifiedShow Answer

An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then the slope of the market demand curve is

Correct AnswerverifiedShow Answer

The demand curve is the upward-sloping line relating price and quantity demanded.

Correct AnswerverifiedShow Answer

The sum of all the individual demand curves for a product is called

Correct AnswerverifiedShow Answer

A demand schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

A decrease in the price of a good would

Correct AnswerverifiedShow Answer

Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause a(n)

Correct AnswerverifiedShow Answer

The following table contains a demand schedule for a good. If the law of demand applies to this good, then Q1 could be

Correct AnswerverifiedShow Answer

In a market economy, supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct AnswerverifiedShow Answer

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Correct AnswerverifiedShow Answer

Individual demand curves are summed vertically to obtain the market demand curve.

Correct AnswerverifiedShow Answer

If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Correct AnswerverifiedShow Answer

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

Correct AnswerverifiedShow Answer

An increase in the price of a good will

Correct AnswerverifiedShow Answer

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