Question 1

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4-18 
-Refer to Figure 4-18.At a price of $12,there is a

Accepted Answer

A)   surplus of 1 unit.
B)   surplus of 2 units.
C)   shortage of 1 unit.
D)   shortage of 2 units.E) A) and B)
F) A) and C)

Question 3

If a surplus exists in a market,then we know that the actual price is

Accepted Answer

A)   above the equilibrium price,and quantity supplied is greater than quantity demanded.
B)   above the equilibrium price,and quantity demanded is greater than quantity supplied.
C)   below the equilibrium price,and quantity demanded is greater than quantity supplied.
D)   below the equilibrium price,and quantity supplied is greater than quantity demanded.E) None of the above
F) B) and C)

Question 4

Which of the following is not a reason perfect competition is a useful simplification,despite the diversity of market types we find in the world?

Accepted Answer

A)   Perfectly competitive markets are the easiest to analyze because everyone participating in the market takes the price as given by market conditions.
B)   Some degree of competition is present in most markets.
C)   There are many buyers and many sellers in all types of markets.
D)   Many of the lessons that we learn by studying supply and demand under perfect competition apply in more complicated markets as well.E) B) and C)
F) A) and B)

Question 5

If income rises in the market for a normal good,will the demand curve for the normal good shift to the right or to the left?

Accepted Answer

The demand...

Question 6

Suppose roses are currently selling for $20 per dozen,but the equilibrium price of roses is $30 per dozen.We would expect a

Accepted Answer

A)   shortage to exist and the market price of roses to increase.
B)   shortage to exist and the market price of roses to decrease.
C)   surplus to exist and the market price of roses to increase.
D)   surplus to exist and the market price of roses to decrease.E) A) and D)
F) A) and C)

Question 7

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Accepted Answer

A) True 
 B)False

Question 8

If a company making frozen orange juice expects the price of its product to be higher next month,it will supply more to the market this month.

Accepted Answer

A) True 
 B)False

Question 9

Prices allocate a market economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 10

Table 4-1
 
-Refer to Table 4-1.If the market consists of Michelle and Laura 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 C)

Question 11

If,at the current price,there is a surplus of a good,then

Accepted Answer

A)   sellers are producing more than buyers wish to buy.
B)   the market must be in equilibrium.
C)   the price is below the equilibrium price.
D)   quantity demanded equals quantity supplied.E) All of the above
F) C) and D)

Question 12

Scenario 4-2
Suppose the demand schedule in a market can be represented by the equation  ,where  is the quantity demanded and  is the price.Also,suppose the supply schedule can be represented by the equation  ,where  is the quantity supplied.
-Suppose the supply and demand of corn both increase.As a result,what will happen to the equilibrium price and equilibrium quantity in the market?

Accepted Answer

The equilibrium quan...

Question 13

Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?

Accepted Answer

A movement...

Question 14

When all market participants are price takers who have no influence over prices,the markets have

Accepted Answer

A)   only a few buyers and sellers.
B)   numerous sellers but only a few buyers.
C)   numerous buyers but only a few sellers.
D)   numerous buyers and sellers.E) A) and C)
F) None of the above

Question 15

An improvement in production technology will

Accepted Answer

A)   increase a firm's costs and increase its supply.
B)   increase a firm's costs and decrease its supply.
C)   decrease a firm's costs and increase its supply.
D)   decrease a firm's costs and decrease its supply.E) None of the above
F) B) and C)

Question 16

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) All of the above
F) None of the above

Question 17

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)   demand for gasoline
B)   price of gasoline
C)   number of producers of gasoline
D)   price of oil,an input into the production of gasolineE) B) and C)
F) A) and D)

Question 18

Which of the following does not affect an individual's demand curve?

Accepted Answer

A)   expectations
B)   income
C)   prices of related goods
D)   the number of buyersE) All of the above
F) C) and D)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A movement along the supply curve might be caused by a change in

Accepted Answer

A)   production technology.
B)   input prices.
C)   expectations about future prices.
D)   the price of the good or service that is being supplied.E) A) and B)
F) C) and D)

Exam 4: The Market Forces of Supply and Demand

Figure 4-18 -Refer to Figure 4-18.At a price of $12,there is a

Correct Answer
verified

Suppose roses are currently selling for $20 per dozen,but the equilibrium price of roses is $30 per dozen.We would expect a

Correct Answer
verified

If a surplus exists in a market,then we know that the actual price is

Correct Answer
verified

Which of the following is not a reason perfect competition is a useful simplification,despite the diversity of market types we find in the world?

Correct Answer
verified

If,at the current price,there is a surplus of a good,then

Correct Answer
verified

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Correct Answer
verified

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

Correct Answer
verified

An improvement in production technology will

Correct Answer
verified

Monopolists are price takers.

Correct Answer
verified

Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?

Correct Answer
verified
A movement...
View Answer

Correct Answer
verified
The equilibrium quan...
View Answer

Which of the following does not affect an individual's demand curve?

Correct Answer
verified

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct Answer
verified

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

Correct Answer
verified

If a company making frozen orange juice expects the price of its product to be higher next month,it will supply more to the market this month.

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

If income rises in the market for a normal good,will the demand curve for the normal good shift to the right or to the left?

Correct Answer
verified
The demand...
View Answer

A movement along the supply curve might be caused by a change in

Correct Answer
verified

Prices allocate a market economy's scarce resources.

Correct Answer
verified

When all market participants are price takers who have no influence over prices,the markets have

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-18 -Refer to Figure 4-18.At a price of $12,there is a

Correct AnswerverifiedShow Answer

Suppose roses are currently selling for $20 per dozen,but the equilibrium price of roses is $30 per dozen.We would expect a

Correct AnswerverifiedShow Answer

If a surplus exists in a market,then we know that the actual price is

Correct AnswerverifiedShow Answer

Which of the following is not a reason perfect competition is a useful simplification,despite the diversity of market types we find in the world?

Correct AnswerverifiedShow Answer

If,at the current price,there is a surplus of a good,then

Correct AnswerverifiedShow Answer

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An improvement in production technology will

Correct AnswerverifiedShow Answer

Monopolists are price takers.

Correct AnswerverifiedShow Answer

Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?

Correct AnswerverifiedA movement...View AnswerShow Answer

Correct AnswerverifiedThe equilibrium quan...View AnswerShow Answer

Which of the following does not affect an individual's demand curve?

Correct AnswerverifiedShow Answer

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a company making frozen orange juice expects the price of its product to be higher next month,it will supply more to the market this month.

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

If income rises in the market for a normal good,will the demand curve for the normal good shift to the right or to the left?

Correct AnswerverifiedThe demand...View AnswerShow Answer

A movement along the supply curve might be caused by a change in

Correct AnswerverifiedShow Answer

Prices allocate a market economy's scarce resources.

Correct AnswerverifiedShow Answer

When all market participants are price takers who have no influence over prices,the markets have

Correct AnswerverifiedShow Answer

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A movement...
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The equilibrium quan...
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The demand...
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