Question 1

A decrease in quantity demanded

Accepted Answer

A)  ​illustrated by a movement downward and to the right along a demand curve.
B)  ​illustrated by a movement upward and to the left along a demand curve.
C)  ​shifts the demand curve to the left.
D)  ​shifts the demand curve to the right.E) A) and D)
F) B) and C)

Question 2

If bad weather destroyed half of the current coffee crop, ceteris paribus, it would:

Accepted Answer

A)  ​increase the demand for coffee.
B)  ​decrease the demand for coffee.
C)  ​increase the demand for tea.
D)  ​decrease the demand for tea.E) B) and C)
F) A) and D)

Question 3

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)

Accepted Answer

A)  ​luxury good.
B)  ​inferior good.
C)  ​normal good.
D)  ​complementary good.E) All of the above
F) A) and D)

Question 4

If an increase in the price of Good A causes an increase in the demand for Good B, Goods A and B are said to be substitutes.

Accepted Answer

A) True 
 B)False

Question 5

The difference between a change in quantity supplied and a change in supply is that a change in:

Accepted Answer

A)  ​quantity supplied is caused by a change in a good's own, current price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
B)  ​supply is caused by a change in a good's own, current price, while a change in the quantity supplied is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
C)  ​quantity supplied is a change in the amount people want to sell, while a change in supply is a change in the amount they actually sell.
D)  ​supply and a change in the quantity supplied are the same thing.E) A) and B)
F) A) and C)

Question 6

Downward shifts are

Accepted Answer

A)  ​increases in both demand and supply.
B)  ​decreases in both demand and supply.
C)  ​increases in demand and decreases in supply.
D)  ​increases in supply and decreases in demand.E) All of the above
F) A) and B)

Question 7

Each of the following is a determinant of demand except

Accepted Answer

A)  ​tastes.
B)  ​production technology.
C)  ​expectations.
D)  ​the prices of related goods.E) None of the above
F) All of the above

Question 8

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

Accepted Answer

A)  ​technology.
B)  ​supplier's input prices.
C)  ​expectations about future prices.
D)  ​the price of the good or service that is being supplied.E) B) and C)
F) All of the above

Question 9

Which of the following will not increase the demand for iced tea?

Accepted Answer

A)  ​an increase in advertising that makes drinking iced tea more appealing
B)  ​an increase in the price of iced coffee, a substitute product
C)  ​an increase in the income of consumers (assume that iced tea is a normal good) 
D)  ​a decrease in the price of iced teaE) B) and D)
F) None of the above

Question 10

​Exhibit 4-4 
-Refer to Exhibit 4-4. A change from Point A to Point B represents a(n) :

Accepted Answer

A)  ​increase in demand.
B)  ​decrease in demand.
C)  ​decrease in quantity demanded.
D)  ​increase in quantity demanded.E) A) and B)
F) A) and C)

Question 11

The federal government's "Cash For Clunkers" program provided consumers up to $4,500 towards new, environmentally friendly automobiles when trading in a less fuel efficient vehicle. Discuss the effect of this move on the industry's demand curve.

Accepted Answer

The "Cash For Clunkers" program made con...

Question 12

A change in which of the following variables does not cause a change in demand?

Accepted Answer

A)  ​prices of unrelated goods
B)  ​incomes of demanders
C)  ​the number of demanders
D)  ​tastes of demandersE) A) and B)
F) None of the above

Question 13

Which of the following would increase the supply of childcare services?

Accepted Answer

A)  ​An increase number of childcare facilities
B)  ​An increase in the cost of certification for workers in this field
C)  ​An increase in the price of childcare
D)  ​none of the aboveE) B) and C)
F) None of the above

Question 14

Which of the following scenarios would prompt producers to supply less now than they otherwise would have?

Accepted Answer

A)  ​Producers expecting a higher price in the future
B)  ​Producers expecting prices to remain unchanged
C)  ​Producers expecting a lower price in the future
D)  ​Producers expecting prices to be volatileE) A) and B)
F) All of the above

Question 15

Which of the following would be least likely to affect the supply of automobiles?

Accepted Answer

A)  ​higher prices for steel and other resources used in producing automobiles
B)  ​a successful physical fitness plan encouraging Americans to walk rather than drive to their destinations
C)  ​a technological improvement reducing the production costs of automobiles
D)  ​increased wages for members of the United Auto Workers unionE) All of the above
F) B) and C)

Question 16

Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?

Accepted Answer

No. During summer months, the demand for...

Question 17

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

Question 18

According to the law of supply:

Accepted Answer

A)  ​there is an inverse relationship between price and quantity demanded.
B)  ​there is a direct relationship between price and quantity demanded.
C)  ​there is an inverse relationship between price and the quantity supplied.
D)  ​there is a direct relationship between price and the quantity supplied.E) A) and D)
F) B) and C)

Question 19

Which of the following would reduce the supply of computers?

Accepted Answer

A)  ​higher wage rates for the workers that assemble the computers
B)  ​a technological improvement that lowers the cost of producing the computers
C)  ​a reduction in the price of computer chips used to produce the computers
D)  ​All of the above would reduce the supply of computers.E) B) and D)
F) A) and C)

Question 20

Based on widespread reaction to the threat of the H1N1 virus, the likely effect on the demand curve for hand sanitizers would be

Accepted Answer

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

Exam 4: Demand, Supply, and Market Equilibrium

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)

Correct AnswerverifiedShow Answer

The difference between a change in quantity supplied and a change in supply is that a change in:

Correct AnswerverifiedShow Answer

Which of the following would increase the supply of childcare services?

Correct AnswerverifiedShow Answer

The federal government's "Cash For Clunkers" program provided consumers up to $4,500 towards new, environmentally friendly automobiles when trading in a less fuel efficient vehicle. Discuss the effect of this move on the industry's demand curve.

Correct AnswerverifiedThe "Cash For Clunkers" program made con...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

If an increase in the price of Good A causes an increase in the demand for Good B, Goods A and B are said to be substitutes.

Correct AnswerverifiedShow Answer

Which of the following will not increase the demand for iced tea?

Correct AnswerverifiedShow Answer

Downward shifts are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If bad weather destroyed half of the current coffee crop, ceteris paribus, it would:

Correct AnswerverifiedShow Answer

Which of the following would reduce the supply of computers?

Correct AnswerverifiedShow Answer

A change in which of the following variables does not cause a change in demand?

Correct AnswerverifiedShow Answer

Which of the following would be least likely to affect the supply of automobiles?

Correct AnswerverifiedShow Answer

Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?

Correct AnswerverifiedNo. During summer months, the demand for...View AnswerShow Answer

A decrease in quantity demanded

Correct AnswerverifiedShow Answer

Based on widespread reaction to the threat of the H1N1 virus, the likely effect on the demand curve for hand sanitizers would be

Correct AnswerverifiedShow Answer

According to the law of supply:

Correct AnswerverifiedShow Answer

​Exhibit 4-4 -Refer to Exhibit 4-4. A change from Point A to Point B represents a(n) :

Correct AnswerverifiedShow Answer

Which of the following scenarios would prompt producers to supply less now than they otherwise would have?

Correct AnswerverifiedShow Answer

Each of the following is a determinant of demand except

Correct AnswerverifiedShow Answer

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The "Cash For Clunkers" program made con...
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No. During summer months, the demand for...
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Exhibit 4-4 -Refer to Exhibit 4-4. A change from Point A to Point B represents a(n) :

Correct Answer
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Correct Answer
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Correct Answer
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