Question 1

Figure 4-8 
-Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Accepted Answer

A)  a movement along D2 from point A to point B
B)  a movement along D2 from point B to point A
C)  a shift from D1 to D2
D)  a shift from D2 to D1E) None of the above
F) B) and C)

Question 2

When quantity demanded decreases 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 flatter.E) All of the above
F) B) and D)

Question 3

A newspaper's classified ads are an example of a market.

Accepted Answer

A) True 
 B)False

Question 4

Supply and demand together determine the price and quantity of a good sold in a market.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is correct?

Accepted Answer

A)  Buyers determine supply, and sellers determine demand.
B)  Buyers determine demand, and sellers determine supply.
C)  Buyers determine both demand and supply.
D)  Sellers determine both demand and supply.E) A) and B)
F) B) and C)

Question 6

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Accepted Answer

A) True 
 B)False

Question 7

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 8

Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the

Accepted Answer

A)  market demand curve.
B)  market supply curve.
C)  equilibrium curve.
D)  surplus or shortage depending on market conditions.E) A) and B)
F) A) and C)

Question 9

For a market for a good or service to exist, there must be a

Accepted Answer

A)  group of buyers and sellers.
B)  specific time and place at which the good or service is traded.
C)  high degree of organization present.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 10

When quantity demanded has increased at every price, it might be because

Accepted Answer

A)  the number of buyers in the market has decreased.
B)  income has increased, and the good is an inferior good.
C)  the costs incurred by sellers producing the good have decreased.
D)  the price of a complementary good has decreased.E) A) and D)
F) None of the above

Question 11

If something happens to alter the quantity demanded at any given price, then

Accepted Answer

A)  the demand curve becomes steeper.
B)  the demand curve becomes flatter.
C)  the demand curve shifts.
D)  we move along the demand curve.E) A) and B)
F) None of the above

Question 12

Figure 4-18 
-Refer to Figure 4-18. At the equilibrium price,

Accepted Answer

A)  200 units would be supplied and demanded.
B)  400 units would be supplied and demanded.
C)  600 units would be supplied and demanded.
D)  600 units would be supplied, but only 200 would be demanded.E) B) and C)
F) A) and C)

Question 13

Table 4-16
The following table shows the supply and demand schedules in a market. 
-Refer to Table 4-16. What is the equilibrium price in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Question 14

A decrease in input costs to firms in a market will result in a(n)

Accepted Answer

A)  decrease in equilibrium price and an increase in equilibrium quantity.
B)  decrease in equilibrium price and a decrease in equilibrium quantity.
C)  increase in equilibrium price and a decrease in equilibrium quantity.
D)  increase in equilibrium price and an increase in equilibrium quantity.E) A) and D)
F) All of the above

Question 15

When we move along a given demand curve,

Accepted Answer

A)  only price is held constant.
B)  income and price are held constant.
C)  all nonprice determinants of demand are held constant.
D)  all determinants of quantity demanded are held constant.E) A) and B)
F) A) and C)

Question 16

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following events could shift the demand curve for gasoline to the left?

Accepted Answer

A)  The income of gasoline buyers rises, and gasoline is a normal good.
B)  The income of gasoline buyers falls, and gasoline is an inferior good.
C)  Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars.
D)  The price of gasoline rises.E) C) and D)
F) A) and D)

Question 18

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​ 
-Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 19

An increase in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 20

If toast and butter are complements, then which of the following would increase the demand for toast?

Accepted Answer

A)  a decrease in the price of toast
B)  a decrease in the price of butter
C)  an increase in the price of butter
D)  Both a and b are correct.E) None of the above
F) All of the above

Exam 4: The Market Forces of Supply and Demand

For a market for a good or service to exist, there must be a

Correct Answer
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An increase in demand shifts the demand curve to the left.

Correct Answer
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Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Correct Answer
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Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Correct Answer
verified

A newspaper's classified ads are an example of a market.

Correct Answer
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Which of the following statements is correct?

Correct Answer
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When quantity demanded has increased at every price, it might be because

Correct Answer
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Supply and demand together determine the price and quantity of a good sold in a market.

Correct Answer
verified

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

Correct Answer
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Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Correct Answer
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It is not possible for demand and supply to shift at the same time.

Correct Answer
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If toast and butter are complements, then which of the following would increase the demand for toast?

Correct Answer
verified

Which of the following events could shift the demand curve for gasoline to the left?

Correct Answer
verified

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Correct Answer
verified

When we move along a given demand curve,

Correct Answer
verified

Correct Answer
verified

If something happens to alter the quantity demanded at any given price, then

Correct Answer
verified

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

Correct Answer
verified

A decrease in input costs to firms in a market will result in a(n)

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

For a market for a good or service to exist, there must be a

Correct AnswerverifiedShow Answer

An increase in demand shifts the demand curve to the left.

Correct AnswerverifiedShow Answer

Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve.

Correct AnswerverifiedShow Answer

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

Correct AnswerverifiedShow Answer

A newspaper's classified ads are an example of a market.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

When quantity demanded has increased at every price, it might be because

Correct AnswerverifiedShow Answer

Supply and demand together determine the price and quantity of a good sold in a market.

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. At the equilibrium price,

Correct AnswerverifiedShow Answer

It is not possible for demand and supply to shift at the same time.

Correct AnswerverifiedShow Answer

If toast and butter are complements, then which of the following would increase the demand for toast?

Correct AnswerverifiedShow Answer

Which of the following events could shift the demand curve for gasoline to the left?

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If something happens to alter the quantity demanded at any given price, then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A decrease in input costs to firms in a market will result in a(n)

Correct AnswerverifiedShow Answer

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Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

Correct Answer
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Correct Answer
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