Question 1

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

Accepted Answer

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

Question 2

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

Question 3

A movement upward and to the left along a given demand curve is called a decrease in demand.

Accepted Answer

A) True 
 B)False

Question 4

Advances in production technology typically reduce firms' costs.

Accepted Answer

A) True 
 B)False

Question 5

A decrease in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 6

Suppose you make jewelry.If the price of gold falls,then we would expect you to

Accepted Answer

A)   be willing and able to produce less jewelry than before at each possible price.
B)   be willing and able to produce more jewelry than before at each possible price.
C)   face a greater demand for your jewelry.
D)   face a weaker demand for your jewelry.E) A) and B)
F) A) and D)

Question 7

Table 4-1
 
-Refer to Table 4-1.If the market consists of Michelle and Hillary only 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) A) and D)
F) B) and D)

Question 8

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) A) and D)
F) A) and C)

Question 9

The supply curve for milk

Accepted Answer

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

Question 10

If a firm is a price taker,it operates in a

Accepted Answer

A)   competitive market.
B)   monopoly market.
C)   oligopoly market.
D)   monopolistically competitive market.E) All of the above
F) A) and B)

Question 11

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Accepted Answer

A)   sweatpants will increase.
B)   sweatpants will decrease.
C)   shorts will increase.
D)   shorts will decrease.E) C) and D)
F) None of the above

Question 12

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Accepted Answer

A)   production technology
B)   expectations
C)   input prices
D)   the number of sellersE) C) and D)
F) B) and C)

Question 13

Which of the following would cause price to decrease?

Accepted Answer

A)   a decrease in supply
B)   an increase in demand
C)   a surplus of the good
D)   a shortage of the goodE) A) and C)
F) A) and D)

Question 14

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-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) None of the above

Question 15

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Accepted Answer

A)   decreases,and the supply of tires increases.
B)   is unaffected,and the supply of tires decreases.
C)   is unaffected,and the supply of tires increases.
D)   None of the above is necessarily correct.E) None of the above
F) A) and B)

Question 16

The highest form of competition is called

Accepted Answer

A)   absolute competition.
B)   cutthroat competition.
C)   perfect competition.
D)   market competition.E) B) and D)
F) A) and C)

Question 17

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

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

Question 18

A market's equilibrium is the point at which the supply and demand curves intersect.

Accepted Answer

A) True 
 B)False

Question 19

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,sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

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

Question 20

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) B) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

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

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production.As a result of these two events,the demand for tires

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A market's equilibrium is the point at which the supply and demand curves intersect.

Correct AnswerverifiedShow Answer

You wear either shorts or sweatpants every day.You notice that sweatpants have gone on sale,so your demand for

Correct AnswerverifiedShow Answer

Advances in production technology typically reduce firms' costs.

Correct AnswerverifiedShow Answer

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

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A decrease in demand shifts the demand curve to the left.

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,sellers expecting the price of turkey to rise in the future would cause a current move from

Correct AnswerverifiedShow Answer

If a firm is a price taker,it operates in a

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Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for kitchen cabinets of an increase in the price of wood?

Correct AnswerverifiedShow Answer

The supply curve for milk

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The highest form of competition is called

Correct AnswerverifiedShow Answer

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose you make jewelry.If the price of gold falls,then we would expect you to

Correct AnswerverifiedShow Answer

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

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

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Which of the following would cause price to decrease?

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Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Suppose x = 1.Then it must be true that

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