Question 1

Which of the following changes would not shift the demand curve for a good or service?

Accepted Answer

A)  a change in income
B)  a change in the price of the good or service
C)  a change in expectations about the future price of the good or service
D)  a change in the price of a related good or serviceE) B) and D)
F) B) and C)

Question 2

In a competitive market, the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)  buyers.
B)  sellers.
C)  both buyers and sellers.
D)  None of the above is correct.E) C) and D)
F) B) and C)

Question 3

A rightward shift of 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 B)
F) A) and C)

Question 4

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-25. All else equal, a major paper manufacturer filing for bankruptcy and shutting down as a result of an IRS tax evasion investigation would cause a move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) B) and D)
F) A) and D)

Question 5

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 6

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Accepted Answer

A)  The number of people who purchase olives decreases.
B)  Consumer income decreases, and olives are a normal good.
C)  The price of pickles decreases, and pickles are a substitute for olives.
D)  The price of olives rises.E) C) and D)
F) B) and D)

Question 7

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 left.

Accepted Answer

A) True 
 B)False

Question 8

In markets, prices move toward equilibrium because of

Accepted Answer

A)  the actions of buyers and sellers.
B)  government regulations placed on market participants.
C)  increased competition among sellers.
D)  buyers' ability to affect market outcomes.E) A) and B)
F) B) and C)

Question 9

A likely example of substitute goods for most people would be

Accepted Answer

A)  tables and chairs.
B)  bicycles and helmets.
C)  apple juice and orange juice.
D)  coffee and sugar.E) B) and C)
F) None of the above

Question 10

Table 4-3 
-Refer to Table 4-3. For whom is the good a normal good?

Accepted Answer

A)  Bert only
B)  Grover only
C)  Bert, Ernie, Grover, and Oscar
D)  This cannot be determined from the table.E) C) and D)
F) B) and D)

Question 11

An increase in the number of college scholarships issued by private foundations would

Accepted Answer

A)  increase the supply of education.
B)  decrease the supply of education.
C)  increase the demand for education.
D)  decrease the demand for education.E) All of the above
F) None of the above

Question 12

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Accepted Answer

A)  no change in the demand for energy drinks.
B)  a decrease in the demand for energy drinks.
C)  an increase in the demand for energy drinks.
D)  a decrease in the supply of energy drinks.E) B) and D)
F) None of the above

Question 13

When the price of peaches changes, the demand curve for peaches

Accepted Answer

A)  shifts because the price of peaches is measured on the vertical axis of the graph.
B)  shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph.
C)  does not shift because the price of peaches is measured on the vertical axis of the graph.
D)  does not shift because the price of peaches is measured on the horizontal axis of the graph.E) B) and D)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

In markets, prices move toward equilibrium because of

Correct Answer
verified

A likely example of substitute goods for most people would be

Correct Answer
verified

When the price of peaches changes, the demand curve for peaches

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 left.

Correct Answer
verified

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, a major paper manufacturer filing for bankruptcy and shutting down as a result of an IRS tax evasion investigation would cause a move from

Correct Answer
verified

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct Answer
verified

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

Correct Answer
verified

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 Answer
verified
The equilibrium pric...
View Answer

A rightward shift of a supply curve is called a(n)

Correct Answer
verified

Table 4-3 -Refer to Table 4-3. For whom is the good a normal good?

Correct Answer
verified

An increase in the number of college scholarships issued by private foundations would

Correct Answer
verified

Which of the following changes would not shift the demand curve for a good or service?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

In markets, prices move toward equilibrium because of

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

When the price of peaches changes, the demand curve for peaches

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 left.

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, a major paper manufacturer filing for bankruptcy and shutting down as a result of an IRS tax evasion investigation would cause a move from

Correct AnswerverifiedShow Answer

Which of the following events would cause a movement upward and to the left along the demand curve for olives?

Correct AnswerverifiedShow Answer

Suppose scientists provide evidence that people who drink energy drinks are more likely to have a heart attack than people who do not drink energy drinks. We would expect to see

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

A rightward shift of a supply curve is called a(n)

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3. For whom is the good a normal good?

Correct AnswerverifiedShow Answer

An increase in the number of college scholarships issued by private foundations would

Correct AnswerverifiedShow Answer

Which of the following changes would not shift the demand curve for a good or service?

Correct AnswerverifiedShow Answer

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The equilibrium pric...
View Answer

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Correct Answer
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Correct Answer
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