Question 1

An decrease in the price of oranges would lead to an)

Accepted Answer

A)   increased supply of oranges.
B)   increase in the prices of inputs used in orange production.
C)   a movement down and to the left along the supply curve for oranges.
D)   a movement up and to the right along the supply curve for oranges.E) A) and C)
F) B) and C)

Question 2

Which of the following demonstrates the law of supply?

Accepted Answer

A)   When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts.
B)   When car production technology improved, car producers increased their supply of cars.
C)   When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters.
D)   When ketchup prices rose, ketchup sellers decreased their quantity supplied of ketchup.E) A) and D)
F) None of the above

Question 3

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Accepted Answer

The supply...

Question 4

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Accepted Answer

A)   a decrease in the price of beer
B)   an expectation by firms that the price of beer will increase in the very near future
C)   a decrease in the price of hops
D)   an improvement in technology that allows firms to use less labor in the production of beerE) C) and D)
F) None of the above

Question 5

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 6

Buyers and sellers who have no influence on market price are referred to as

Accepted Answer

A)   market pawns.
B)   monopolists.
C)   price takers.
D)   price setters.E) B) and C)
F) None of the above

Question 7

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Accepted Answer

A)   the price of tennis balls increases.
B)   the price of tennis balls decreases.
C)   the price of tennis balls does not change.
D)   there is no longer a market for tennis balls.E) C) and D)
F) A) and B)

Question 8

An increase in the price of blueberries would lead to an)

Accepted Answer

A)   increased supply of blueberries.
B)   a movement up and to the right along the supply curve for blueberries.
C)   a movement down and to the left along the supply curve for blueberries.
D)   Both a and b are correct.E) A) and B)
F) A) and C)

Question 9

Figure 4-16 
-Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by an)

Accepted Answer

A)   increase in the price of apartments which are a substitute for single-family houses for many people looking for a place to live.
B)   newly-formed expectation by house-builders that prices of houses will increase significantly in the next six months.
C)   decrease in the price of lumber.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 10

Table 4-8
 
-Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Accepted Answer

A)   decrease by 6 units.
B)   decrease by 12 units.
C)   increase by 6 units.
D)   increase by 12 units.E) C) and D)
F) A) and B)

Question 11

Scenario 4-1
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.
-Refer to Scenario 4-1. What is the equilibrium price in this market?

Accepted Answer

The answer of Scenario 4-1
Suppose the demand schedule in a...

Question 12

Table 4-6
 
-Refer to Table 4-6. Which supply schedules obey the law of supply?

Accepted Answer

A)   Firm A's only
B)   Firm B's, Firm C's, and Firm D's only
C)   Firm A's and Firm C's only
D)   Firm B's and Firm D's onlyE) A) and C)
F) B) and C)

Question 13

The demand curve for coffee shifts

Accepted Answer

A)   only when income changes.
B)   when a determinant of the demand for coffee other than the price of coffee changes.
C)   when the price of coffee changes.
D)   Both b and c are correct.E) A) and B)
F) A) and C)

Question 14

Figure 4-31
Consider the market for 2-packs of light bulbs below. 
-Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Accepted Answer

Equilibrium price de...

Question 15

Table 4-7
 
-Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Accepted Answer

A)   4 gallons.
B)   5 gallons.
C)   20 gallons.
D)   80 gallons.E) All of the above
F) A) and C)

Question 16

Most markets in the economy are

Accepted Answer

A)   markets in which sellers, rather than buyers, control the price of the product.
B)   markets in which buyers, rather than sellers, control the price of the product.
C)   perfectly competitive.
D)   highly competitive.E) C) and D)
F) None of the above

Question 17

A decrease in supply is represented by a

Accepted Answer

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

Question 18

The two words most often used by economists are

Accepted Answer

A)   prices and quantities.
B)   resources and allocation.
C)   supply and demand.
D)   efficiency and equity.E) A) and B)
F) A) and C)

Question 19

A decrease in the number of sellers in the market causes

Accepted Answer

A)   the supply curve to shift to the left.
B)   the supply curve to shift to the right.
C)   a movement up and to the right along a stationary supply curve.
D)   a movement downward and to the left along a stationary supply curve.E) C) and D)
F) B) and C)

Question 20

If the demand for a good falls when income falls, then the good is called a(n)

Accepted Answer

A)   normal good.
B)   regular good.
C)   luxury good.
D)   inferior good.E) A) and B)
F) A) and C)

Exam 4: The Market Forces of Supply and Demand

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by an)

Correct Answer
verified

Table 4-6 -Refer to Table 4-6. Which supply schedules obey the law of supply?

Correct Answer
verified

An decrease in the price of oranges would lead to an)

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Correct Answer
verified

Which of the following demonstrates the law of supply?

Correct Answer
verified

Most markets in the economy are

Correct Answer
verified

Buyers and sellers who have no influence on market price are referred to as

Correct Answer
verified

If the demand for a good falls when income falls, then the good is called a(n)

Correct Answer
verified

A decrease in supply is represented by a

Correct Answer
verified

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Correct Answer
verified

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Correct Answer
verified

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Correct Answer
verified

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Correct Answer
verified
Equilibrium price de...
View Answer

The demand curve for coffee shifts

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

An increase in the price of blueberries would lead to an)

Correct Answer
verified

The two words most often used by economists are

Correct Answer
verified

A decrease in the number of sellers in the market causes

Correct Answer
verified

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct Answer
verified
The supply...
View Answer

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by an)

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6. Which supply schedules obey the law of supply?

Correct AnswerverifiedShow Answer

An decrease in the price of oranges would lead to an)

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for beer?

Correct AnswerverifiedShow Answer

Which of the following demonstrates the law of supply?

Correct AnswerverifiedShow Answer

Most markets in the economy are

Correct AnswerverifiedShow Answer

Buyers and sellers who have no influence on market price are referred to as

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls, then the good is called a(n)

Correct AnswerverifiedShow Answer

A decrease in supply is represented by a

Correct AnswerverifiedShow Answer

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

Correct AnswerverifiedShow Answer

Table 4-7 -Refer to Table 4-7. If these are the only four sellers in the market for ice cream, then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?

Correct AnswerverifiedEquilibrium price de...View AnswerShow Answer

The demand curve for coffee shifts

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

An increase in the price of blueberries would lead to an)

Correct AnswerverifiedShow Answer

The two words most often used by economists are

Correct AnswerverifiedShow Answer

A decrease in the number of sellers in the market causes

Correct AnswerverifiedShow Answer

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct AnswerverifiedThe supply...View AnswerShow Answer

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Equilibrium price de...
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A movement...
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The supply...
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