Question 1

Individual supply curves are summed vertically to obtain the market supply curve.

Accepted Answer

A) True 
 B)False

Question 2

A decrease in the price of baseball bats will decrease the demand for baseballs.

Accepted Answer

A) True 
 B)False

Question 3

A movement upward and to the left along a given demand curve is called a decrease in demand.

Accepted Answer

A) True 
 B)False

Question 4

Table 4-2
​
​
  ​
​
-Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Accepted Answer

A)  12 units.
B)  30 units.
C)  8 units.
D)  24 units.E) None of the above
F) A) and B)

Question 5

Which of the following is not held constant in a demand schedule?

Accepted Answer

A)  Income
B)  Tastes
C)  Price
D)  ExpectationsE) A) and C)
F) A) and D)

Question 6

Figure 4-8 a to Db. B) Db to Da. C) x to y. D) y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-8. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Accepted Answer

A)  Da to Db.
B)  Db to Da.
C)  x to y.
D)  y to x.E) C) and D)
F) A) and D)

Question 7

When the price of a good is high, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 8

Figure 4-1  ​
-Refer to Figure 4-1. It is apparent from the figure that the

Accepted Answer

A)  good is inferior.
B)  demand for the good decreases as income increases.
C)  demand for the good conforms to the law of demand.
D)  good is a normal good.E) B) and C)
F) A) and C)

Question 9

Table 4-9
The following table shows the supply and demand schedules in a market.
 $$\begin{array} { | l | l | l | } 
\hline \text { Price (\$) } & \begin{array} { l } 
\text { Quantity } \
\text { Demanded } \
\text { (units) }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied } \
\text { (units) }
\end{array} \
\hline 0 & 50 & 0 \
\hline 2 & 40 & 15 \
\hline 4 & 30 & 30 \
\hline 6 & 20 & 45 \
\hline 8 & 10 & 60 \
\hline 10 & 0 & 75 \
\hline
\end{array}$$
-Refer to Table 4-9. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

The answer of Table 4-9
The following table shows the supply...

Question 10

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Accepted Answer

A) True 
 B)False

Question 11

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Accepted Answer

A) True 
 B)False

Question 12

Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?

Accepted Answer

A)  Sellers would not be able to produce and sell as much as before at each relevant price.
B)  The supply would decrease.
C)  Buyers would not be willing to buy as much as before at each relevant price.
D)  The equilibrium price would rise.E) B) and C)
F) B) and D)

Question 13

All goods and services are sold in perfectly competitive markets.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would not increase in response to a decrease in the price of ironing boards?

Accepted Answer

A)  The quantity of irons demanded at each possible price of irons
B)  The equilibrium quantity of irons
C)  The equilibrium price of irons
D)  The quantity of irons supplied at each possible price of ironsE) C) and D)
F) A) and B)

Question 16

A likely example of substitute goods for most people would be

Accepted Answer

A)  tennis balls and tennis rackets.
B)  shoes and socks.
C)  cereal and milk.
D)  iced tea and lemonade.E) None of the above
F) A) and B)

Question 17

Figure 4-13
  ​
-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 18

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 19

A likely example of complementary goods for most people would be

Accepted Answer

A)  pencils and pens.
B)  lawnmowers and automobiles.
C)  coffee and sugar.
D)  butter and margarine.E) None of the above
F) All of the above

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Correct Answer
verified

Individual supply curves are summed vertically to obtain the market supply curve.

Correct Answer
verified

Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Correct Answer
verified

All goods and services are sold in perfectly competitive markets.

Correct Answer
verified

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct Answer
verified

A decrease in the price of baseball bats will decrease the demand for baseballs.

Correct Answer
verified

Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?

Correct Answer
verified

A likely example of substitute goods for most people would be

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1. It is apparent from the figure that the

Correct Answer
verified

Figure 4-13 -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

When the price of a good is high, selling the good is profitable, and so the quantity supplied is large.

Correct Answer
verified

Which of the following would not increase in response to a decrease in the price of ironing boards?

Correct Answer
verified

Figure 4-8 -Refer to Figure 4-8. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct Answer
verified

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not held constant in a demand schedule?

Correct Answer
verified

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Correct Answer
verified

A likely example of complementary goods for most people would be

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Correct AnswerverifiedShow Answer

Individual supply curves are summed vertically to obtain the market supply curve.

Correct AnswerverifiedShow Answer

Table 4-2 ​ ​ ​ ​ -Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Correct AnswerverifiedShow Answer

All goods and services are sold in perfectly competitive markets.

Correct AnswerverifiedShow Answer

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct AnswerverifiedShow Answer

A decrease in the price of baseball bats will decrease the demand for baseballs.

Correct AnswerverifiedShow Answer

Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-1 ​ -Refer to Figure 4-1. It is apparent from the figure that the

Correct AnswerverifiedShow Answer

Figure 4-13 ​ -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

When the price of a good is high, selling the good is profitable, and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

Which of the following would not increase in response to a decrease in the price of ironing boards?

Correct AnswerverifiedShow Answer

Figure 4-8 -Refer to Figure 4-8. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Correct AnswerverifiedShow Answer

An increase in supply will cause a decrease in price, which will cause an increase in demand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not held constant in a demand schedule?

Correct AnswerverifiedShow Answer

When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied.

Correct AnswerverifiedShow Answer

A likely example of complementary goods for most people would be

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Table 4-2 -Refer to Table 4-2. If these are the only four buyers in the market, then the market quantity demanded at a price of $1.50 is

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Figure 4-1 -Refer to Figure 4-1. It is apparent from the figure that the

Correct Answer
verified

Figure 4-13 -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

Correct Answer
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Correct Answer
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