Question 1

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Accepted Answer

A)   The demand for shotgun-shell ammunition will increase.
B)   The demand for shotgun-shell ammunition will decrease.
C)   The demand for shotgun-shell ammunition will be unaffected.
D)   The supply of shotgun-shell ammunition will increase.E) A) and C)
F) A) and B)

Question 2

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

Accepted Answer

A)   can cause a movement along a demand curve.
B)   can affect future demand but not today's demand.
C)   can affect today's demand.
D)   cannot affect either today's demand or future demand.E) None of the above
F) A) and B)

Question 3

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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

Question 4

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Accepted Answer

A)   the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price.
B)   the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price.
C)   there is a surplus of blue jeans at the $30 price.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 5

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

Accepted Answer

A)   increase in the price of peaches.
B)   decrease in the price of pears.
C)   increase in income.
D)   decrease in the labor costs of the workers who pick peaches.E) A) and C)
F) None of the above

Question 6

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

A)   is referred to as the law of supply.
B)   applies only to a few goods in the economy.
C)   is represented by a downward-sloping supply curve.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 7

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 8

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) B) and D)
F) A) and B)

Question 9

Once the supply curve for a product or service is drawn, it

Accepted Answer

A)   remains stable over time.
B)   can shift either rightward or leftward.
C)   is possible to move along the curve, but the curve will not shift.
D)   tends to become steeper over time.E) A) and D)
F) B) and C)

Question 10

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 11

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased?

Accepted Answer

A)   Price will fall, and the effect on quantity is ambiguous.
B)   Price will rise, and the effect on quantity is ambiguous.
C)   Quantity will fall, and the effect on price is ambiguous.
D)   Quantity will rise, and the effect on price is ambiguous.E) B) and D)
F) A) and D)

Question 12

Figure 4-27
Panel (a)  Panel (b)    Panel (c)  Panel (d)   
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?

Accepted Answer

A)   Panel (a) 
B)   Panel (b) 
C)   Panel (c) 
D)   Panel (d) E) A) and B)
F) None of the above

Question 13

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

Accepted Answer

A)   0.
B)   50.
C)   100.
D)   150.E) A) and C)
F) A) and D)

Question 14

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)   0.
B)   15.
C)   25.
D)   30.E) A) and B)
F) A) and C)

Question 15

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the 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) All of the above
F) A) and B)

Question 16

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

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

Question 17

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 18

Table 4-11 
-Refer to Table 4-11. If the price were $8, a

Accepted Answer

A)   shortage of 20 units would exist, and price would tend to rise.
B)   surplus of 25 units would exist, and price would tend to fall.
C)   shortage of 25 units would exist, and price would tend to rise.
D)   surplus of 45 units would exist, and price would tend to fall.E) A) and B)
F) B) and D)

Question 19

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

Question 20

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. 
-Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) None of the above
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct Answer
verified

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Correct Answer
verified

Correct Answer
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Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Correct Answer
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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?

Correct Answer
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Once the supply curve for a product or service is drawn, it

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

Correct Answer
verified

When the price of a good or service changes,

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Correct Answer
verified

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Correct Answer
verified

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Correct Answer
verified

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Correct Answer
verified

Which of the following would cause price to decrease?

Correct Answer
verified

Table 4-11 -Refer to Table 4-11. If the price were $8, a

Correct Answer
verified

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

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Correct Answer
verified

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

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

Exam 4: The Market Forces of Supply and Demand

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct AnswerverifiedShow Answer

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a sale on chicken would cause a move from

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?

Correct AnswerverifiedShow Answer

Once the supply curve for a product or service is drawn, it

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the price of a good or service changes,

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for doctor's visits of an increase in the number of medical students graduating from medical school and successfully completing their residency programs?

Correct AnswerverifiedShow Answer

"Other things equal, when the price of a good rises, the quantity supplied of the good also rises, and when the price falls, the quantity supplied falls as well." This relationship between price and quantity supplied

Correct AnswerverifiedShow Answer

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

Correct AnswerverifiedShow Answer

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

Correct AnswerverifiedShow Answer

Which of the following would cause price to decrease?

Correct AnswerverifiedShow Answer

Table 4-11 -Refer to Table 4-11. If the price were $8, a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Correct AnswerverifiedShow Answer

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by a(n)

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

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