Question 1

The actions of buyers and sellers naturally move markets toward equilibrium.

Accepted Answer

A) True 
 B)False

Question 2

The law of supply states that, other things equal, when the price of a good

Accepted Answer

A)  falls, the supply of the good rises.
B)  rises, the quantity supplied of the good rises.
C)  rises, the supply of the good falls.
D)  falls, the quantity supplied of the good rises.E) B) and C)
F) A) and D)

Question 3

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, the premature deaths of thousands of turkeys would cause a move from

Accepted Answer

A)  Da to Db.
B)  Db to Da.
C)  x to y.
D)  y to x.E) None of the above
F) A) and D)

Question 4

Two goods are complements when a decrease in the price of one good

Accepted Answer

A)  decreases the quantity demanded of the other good.
B)  decreases the demand for the other good.
C)  increases the quantity demanded of the other good.
D)  increases the demand for the other good.E) None of the above
F) A) and D)

Question 5

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A)  There is free entry and exit.
B)  There are many buyers and sellers.
C)  Sellers must accept the price the market determines.
D)  Different sellers sell differentiated products.E) A) and C)
F) B) and D)

Question 7

Figure 4-9 a to Sb. D) Sb to Sa." class="answers-bank-image d-inline" rel="preload" > ​
-Refer to Figure 4-9. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  Sa to Sb.
D)  Sb to Sa.E) B) and C)
F) B) and D)

Question 8

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, if the size of the shift of the demand curve is larger than the size of the shift of the supply curve, then the equilibrium quantity rises.

Accepted Answer

A) True 
 B)False

Question 9

When the 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) B) and D)

Question 10

If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes.

Accepted Answer

A) True 
 B)False

Question 11

Prices allocate a market economy's scarce resources.

Accepted Answer

A) True 
 B)False

Question 12

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

Accepted Answer

A)  Both the equilibrium price and quantity would increase.
B)  Both the equilibrium price and quantity would decrease.
C)  The equilibrium price would increase, and the equilibrium quantity would decrease.
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.E) C) and D)
F) A) and C)

Question 13

When we move along a given supply curve,

Accepted Answer

A)  only price is held constant.
B)  technology and price are held constant.
C)  all nonprice determinants of supply are held constant.
D)  all determinants of quantity supplied are held constant.E) A) and B)
F) A) and C)

Question 14

Figure 4-12
​
  ​
-Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Accepted Answer

The answer of Figure 4-12
​
  ​
-Refer to Figure 4-29....

Question 15

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)  decreases, and the supply of tires increases.
B)  is unaffected, and the supply of tires decreases.
C)  is unaffected, and the supply of tires increases.
D)  is unaffected, and the supply of tires could increase, decrease, or stay the same.E) A) and B)
F) A) and C)

Question 16

The law of demand is true for most goods in the economy.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following demonstrates the law of demand?

Accepted Answer

A)  After Qyatt got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise.
B)  Benjamin buys fewer croissants at $0.75 per croissant than at $1 per croissant, other things equal.
C)  Ashlyn buys more donut holes at $0.25 per donut hole than at $0.50 per donut hole, other things equal.
D)  Ellie buys fewer Snickers at $0.60 per candy bar after the price of Skittles falls to $0.50 per bag.E) C) and D)
F) None of the above

Question 18

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Accepted Answer

A) True 
 B)False

Question 19

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation QS1U1P1D S1S1P0= 500 - 10P, where QS1U1P1D S1S1P0 is the quantity demanded and P is the price. Also, suppose the supply schedule can be represented by the equation QS1U1P1S S1S1P0= 200 + 10P, where QS1U1P1S S1S1P0 is the quantity supplied.
-Refer to Scenario 4-1. Suppose the price is currently equal to 18 in this market. Is there a shortage or surplus in this market, and how large is the shortage/surplus?

Accepted Answer

There is a...

Question 20

Figure 4-14
Consider the market for 2-packs of light bulbs below.
​
  ​
-Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Accepted Answer

There is a...

Exam 4: The Market Forces of Supply and Demand

Figure 4-12 -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Correct Answer
verified

Figure 4-9 -Refer to Figure 4-9. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Correct Answer
verified

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

Correct Answer
verified

Figure 4-8 -Refer to Figure 4-8. All else equal, the premature deaths of thousands of turkeys would cause a move from

Correct Answer
verified

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct Answer
verified

The law of demand is true for most goods in the economy.

Correct Answer
verified

Which of the following demonstrates the law of demand?

Correct Answer
verified

Correct Answer
verified

The law of supply states that, other things equal, when the price of a good

Correct Answer
verified

Prices allocate a market economy's scarce resources.

Correct Answer
verified

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Correct Answer
verified

Correct Answer
verified
There is a...
View Answer

Figure 4-14 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes.

Correct Answer
verified

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

Correct Answer
verified

Two goods are complements when a decrease in the price of one good

Correct Answer
verified

When we move along a given supply curve,

Correct Answer
verified

Which of the following is not a characteristic of a perfectly competitive market?

Correct Answer
verified

The actions of buyers and sellers naturally move markets toward equilibrium.

Correct Answer
verified

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Figure 4-12 ​ ​ -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Correct AnswerverifiedShow Answer

Figure 4-9 ​ -Refer to Figure 4-9. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Correct AnswerverifiedShow Answer

If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?

Correct AnswerverifiedShow Answer

Figure 4-8 -Refer to Figure 4-8. All else equal, the premature deaths of thousands of turkeys would cause a move from

Correct AnswerverifiedShow Answer

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct AnswerverifiedShow Answer

The law of demand is true for most goods in the economy.

Correct AnswerverifiedShow Answer

Which of the following demonstrates the law of demand?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The law of supply states that, other things equal, when the price of a good

Correct AnswerverifiedShow Answer

Prices allocate a market economy's scarce resources.

Correct AnswerverifiedShow Answer

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is a...View AnswerShow Answer

Figure 4-14 Consider the market for 2-packs of light bulbs below. ​ ​ -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct AnswerverifiedThere is a...View AnswerShow Answer

If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Two goods are complements when a decrease in the price of one good

Correct AnswerverifiedShow Answer

When we move along a given supply curve,

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a perfectly competitive market?

Correct AnswerverifiedShow Answer

The actions of buyers and sellers naturally move markets toward equilibrium.

Correct AnswerverifiedShow Answer

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Correct AnswerverifiedShow Answer

Figure 4-12 -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Correct Answer
verified

Figure 4-9 -Refer to Figure 4-9. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified
There is a...
View Answer

Figure 4-14 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Correct Answer
verified
There is a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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