Question 1

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Accepted Answer

A) True 
 B)False

Question 2

What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?

Accepted Answer

A)  Price will rise.
B)  Price will fall.
C)  Price will stay exactly the same.
D)  The price change will be ambiguous.E) B) and D)
F) B) and C)

Question 3

Figure 4-9 
-Refer to Figure 4-9. The movement from point A to point B on the graph is caused by

Accepted Answer

A)  a decrease in the price of the good.
B)  an increase in the price of the good.
C)  an advance in production technology.
D)  a decrease in input prices.E) A) and C)
F) A) and B)

Question 4

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 D)
F) B) and C)

Question 5

When quantity demanded increases at every possible price, the demand curve has

Accepted Answer

A)  shifted to the left.
B)  shifted to the right.
C)  not shifted; rather, we have moved along the demand curve to a new point on the same curve.
D)  not shifted; rather, the demand curve has become steeper.E) B) and C)
F) All of the above

Question 6

Figure 4-9 
-Refer to Figure 4-9. The movement from point A to point B on the graph represents

Accepted Answer

A)  an increased willingness and ability on the part of suppliers to supply the good at each possible price.
B)  an increase in the number of suppliers.
C)  a decrease in the price of a relevant input.
D)  an increase in the price of the good that is being supplied and the suppliers' responses to that price change.E) None of the above
F) All of the above

Question 7

Today, producers changed their expectations about the future. This change

Accepted Answer

A)  can cause a movement along a supply curve.
B)  can affect future supply, but not today's supply.
C)  can affect today's supply.
D)  cannot affect either today's supply or future supply.E) C) and D)
F) A) and D)

Question 8

Figure 4-15 
-Refer to Figure 4-15. At a price of $15, there would be a

Accepted Answer

A)  surplus of 400 units.
B)  shortage of 200 units.
C)  shortage of 400 units.
D)  shortage of 600 units.E) B) and C)
F) A) and D)

Question 9

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 10

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Accepted Answer

A) True 
 B)False

Question 11

Figure 4-14 
-Refer to Figure 4-14. At a price of

Accepted Answer

A)  $8, there is a surplus of 6 units.
B)  $5, there is neither a shortage nor a surplus.
C)  $2, there is a shortage of 6 units.
D)  All of the above are correct.E) None of the above
F) A) and B)

Question 12

When the price of a good or service changes,

Accepted Answer

A)  the supply curve shifts in the opposite direction.
B)  the demand curve shifts in the opposite direction.
C)  the demand curve shifts in the same direction.
D)  there is a movement along a given demand curve.E) All of the above
F) A) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Figure 4-9 
-Refer to Figure 4-9. The movement from point A to point B on the graph is called

Accepted Answer

A)  a decrease in supply.
B)  an increase in supply.
C)  an increase in the quantity supplied.
D)  a decrease in the quantity supplied.E) B) and D)
F) None of the above

Question 15

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Accepted Answer

A)  is greater than the quantity that sellers are willing and able to sell.
B)  exactly equals the quantity that sellers are willing and able to sell.
C)  is less than the quantity that sellers are willing and able to sell.
D)  Either a)  or c)  could be correct.E) B) and C)
F) A) and B)

Question 16

A decrease in demand is represented by a

Accepted Answer

A)  movement downward and to the right along a demand curve.
B)  movement upward and to the left along a demand curve.
C)  rightward shift of a demand curve.
D)  leftward shift of a demand curve.E) A) and C)
F) A) and B)

Question 17

A decrease in the price of baseball bats will decrease the demand for baseballs.

Accepted Answer

A) True 
 B)False

Question 18

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.   Price  Harry’s  Quantity  Demanded  Darby’s  Quantity  Denanded  Jake’s  Quantity  Denanded $3343$512x\begin{array} { | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Harry&#x27;s } \	ext { Quantity } \	ext { Demanded }\end{array} & \begin{array} { c } 	ext { Darby&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} & \begin{array} { c } 	ext { Jake&#x27;s } \	ext { Quantity } \	ext { Denanded }\end{array} \\hline \$ 3 & 3 & 4 & 3 \\hline \$ 5 & 1 & 2 & x \\hline\end{array} Price $3$5​ Harry’s  Quantity  Demanded ​31​ Darby’s  Quantity  Denanded ​42​ Jake’s  Quantity  Denanded ​3x​​ 
-Refer to Table 4-9. Suppose x = 1. Then it must be true that

Accepted Answer

A)  Harry and Jake have the same income, which is lower than Darby's income.
B)  if sandwiches and potato chips are complements for Harry, then those two goods are also complements for Jake.
C)  Harry's demand curve is identical to Jake's demand curve.
D)  All of the above are correct. E) C) and D)
F) A) and B)

Question 19

In a competitive market, the price of a product

Accepted Answer

A)  is determined by buyers, and the quantity of the product produced is determined by sellers.
B)  is determined by sellers, and the quantity of the product produced is determined by buyers.
C)  and the quantity of the product produced are both determined by sellers.
D)  None of the above is correct.E) A) and D)
F) All of the above

Question 20

If suppliers expect the price of their product to fall in the future, then they will

Accepted Answer

A)  decrease supply now.
B)  increase supply now.
C)  decrease supply in the future but not now.
D)  increase supply in the future but not now.E) B) and D)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?

Correct Answer
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Correct Answer
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Figure 4-14 -Refer to Figure 4-14. At a price of

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

Correct Answer
verified

A decrease in the price of baseball bats will decrease the demand for baseballs.

Correct Answer
verified

In a competitive market, the price of a product

Correct Answer
verified

Today, producers changed their expectations about the future. This change

Correct Answer
verified

Figure 4-9 -Refer to Figure 4-9. The movement from point A to point B on the graph is called

Correct Answer
verified

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Correct Answer
verified

Figure 4-9 -Refer to Figure 4-9. The movement from point A to point B on the graph represents

Correct Answer
verified

Figure 4-9 -Refer to Figure 4-9. The movement from point A to point B on the graph is caused by

Correct Answer
verified

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15. At a price of $15, there would be a

Correct Answer
verified

When quantity demanded increases at every possible price, the demand curve has

Correct Answer
verified

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

Correct Answer
verified

A decrease in demand is represented by a

Correct Answer
verified

Monopolists are price takers.

Correct Answer
verified

When the price of a good or service changes,

Correct Answer
verified

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Correct Answer
verified

If suppliers expect the price of their product to fall in the future, then they will

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-14 -Refer to Figure 4-14. At a price of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A decrease in the price of baseball bats will decrease the demand for baseballs.

Correct AnswerverifiedShow Answer

In a competitive market, the price of a product

Correct AnswerverifiedShow Answer

Today, producers changed their expectations about the future. This change

Correct AnswerverifiedShow Answer

Figure 4-9 -Refer to Figure 4-9. The movement from point A to point B on the graph is called

Correct AnswerverifiedShow Answer

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Correct AnswerverifiedShow Answer

Figure 4-9 -Refer to Figure 4-9. The movement from point A to point B on the graph represents

Correct AnswerverifiedShow Answer

Figure 4-9 -Refer to Figure 4-9. The movement from point A to point B on the graph is caused by

Correct AnswerverifiedShow Answer

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15. At a price of $15, there would be a

Correct AnswerverifiedShow Answer

When quantity demanded increases at every possible price, the demand curve has

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A decrease in demand is represented by a

Correct AnswerverifiedShow Answer

Monopolists are price takers.

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Correct AnswerverifiedShow Answer

If suppliers expect the price of their product to fall in the future, then they will

Correct AnswerverifiedShow Answer

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