Question 1

Suppose the United States had a short-term shortage of farmers. Which mechanisms would adjust to remove the shortage?

Accepted Answer

A)   The government would provide tax incentives to encourage people to become farmers.
B)   The government would subsidize the production of food.
C)   The prices of food and the wages of farmers would adjust.
D)   There are no mechanisms to remove the shortage.E) A) and B)
F) A) and C)

Question 2

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 butter?

Accepted Answer

A)   a decrease in the price of butter
B)   an increase in the price of margarine
C)   an increase in the price of milk
D)   an improvement in technology that allows firms to use less labor in the production of butterE) C) and D)
F) B) and C)

Question 3

A leftward shift of a demand curve is called an)

Accepted Answer

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

Question 4

In a competitive market, the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)   a single buyer.
B)   a single seller.
C)   one buyer and one seller working together.
D)   all buyers and all sellers.E) C) and D)
F) B) and C)

Question 5

Today's supply curve for gasoline could shift in response to a change in

Accepted Answer

A)   today's price of gasoline.
B)   the expected future price of gasoline.
C)   the number of buyers of gasoline.
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 6

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) All of the above
F) A) and B)

Question 7

A likely example of complementary goods for most people would be

Accepted Answer

A)   canoes and paddles.
B)   snow mobiles and sofas.
C)   coffee and tea.
D)   tennis balls and basketballs.E) C) and D)
F) None of the above

Question 8

Table 4-1
 
-Refer to Table 4-1. If the market consists of Michelle and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Accepted Answer

A)   2 units.
B)   3 units.
C)   4 units.
D)   5 units.E) C) and D)
F) B) and D)

Question 9

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Accepted Answer

A)   the ticket price is above the equilibrium price.
B)   the ticket price is below the equilibrium price.
C)   the ticket price is at the equilibrium price.
D)   nothing about the equilibrium price.E) None of the above
F) A) and D)

Question 10

The supply curve for portable charcoal grills shifts

Accepted Answer

A)   only when production technology changes.
B)   when a determinant of the supply of portable charcoal grills other than the price of portable charcoal grills changes.
C)   when any determinant of the supply of portable charcoal grills changes.
D)   only when the number of sellers of portable charcoal grills changes.E) B) and D)
F) A) and D)

Question 11

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.

If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)   0.
B)   15.
C)   25.
D)   30.E) B) and D)
F) A) and D)

Question 12

The law of demand states that, other things equal, an increase in

Accepted Answer

A)   price causes quantity demanded to increase.
B)   price causes quantity demanded to decrease.
C)   quantity demanded causes price to increase.
D)   quantity demanded causes price to decrease.E) B) and C)
F) A) and D)

Question 13

A market's equilibrium is the point at which the supply and demand curves intersect.

Accepted Answer

A) True 
 B)False

Question 14

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Accepted Answer

A)   only for Harry
B)   only for Darby
C)   for both Harry and Darby
D)   This cannot be determined from the given information.E) A) and C)
F) A) and D)

Question 15

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Accepted Answer

A)   law of supply.
B)   law of demand.
C)   difference between normal and inferior goods.
D)   difference between substitute and complement goods.E) B) and C)
F) None of the above

Question 16

Table 4-16
The following table shows the supply and demand schedules in a market.
 
-Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Accepted Answer

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

Question 17

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-15. Assume these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price. If the price is $6 per case, is there a shortage or surplus, and how large is the shortage or surplus?

Accepted Answer

There is a...

Question 18

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 19

Figure 4-27

-Refer to Figure 4-27. Panel a)  shows which of the following?

Accepted Answer

A)   an increase in demand and an increase in quantity supplied
B)   an increase in demand and an increase in supply
C)   an increase in quantity demanded and an increase in quantity supplied
D)   an increase in quantity demanded and an increase in supplyE) None of the above
F) All of the above

Question 20

An example of a perfectly competitive market would be the

Accepted Answer

A)   cable TV market.
B)   soybean market.
C)   breakfast cereal market.
D)   shampoo market.E) B) and C)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

Suppose the United States had a short-term shortage of farmers. Which mechanisms would adjust to remove the shortage?

Correct Answer
verified

The supply curve for portable charcoal grills shifts

Correct Answer
verified

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct Answer
verified

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Correct Answer
verified

An example of a perfectly competitive market would be the

Correct Answer
verified

The law of demand states that, other things equal, an increase in

Correct Answer
verified

A likely example of complementary goods for most people would be

Correct Answer
verified

Figure 4-27 -Refer to Figure 4-27. Panel a) shows which of the following?

Correct Answer
verified

Correct Answer
verified
There is a...
View Answer

Today's supply curve for gasoline could shift in response to a change in

Correct Answer
verified

A market's equilibrium is the point at which the supply and demand curves intersect.

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 butter?

Correct Answer
verified

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Correct Answer
verified

The demand curve for coffee shifts

Correct Answer
verified

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Correct Answer
verified

A leftward shift of a demand curve is called an)

Correct Answer
verified

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Suppose the United States had a short-term shortage of farmers. Which mechanisms would adjust to remove the shortage?

Correct AnswerverifiedShow Answer

The supply curve for portable charcoal grills shifts

Correct AnswerverifiedShow Answer

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Correct AnswerverifiedShow Answer

In a competitive market, the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

Correct AnswerverifiedShow Answer

An example of a perfectly competitive market would be the

Correct AnswerverifiedShow Answer

The law of demand states that, other things equal, an increase in

Correct AnswerverifiedShow Answer

A likely example of complementary goods for most people would be

Correct AnswerverifiedShow Answer

Figure 4-27 -Refer to Figure 4-27. Panel a) shows which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is a...View AnswerShow Answer

Today's supply curve for gasoline could shift in response to a change in

Correct AnswerverifiedShow Answer

A market's equilibrium is the point at which the supply and demand curves intersect.

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 butter?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Correct AnswerverifiedShow Answer

The demand curve for coffee shifts

Correct AnswerverifiedShow Answer

Table 4-1 -Refer to Table 4-1. If the market consists of Michelle and Hillary only and the price falls by $1, the quantity demanded in the market increases by

Correct AnswerverifiedShow Answer

A leftward shift of a demand curve is called an)

Correct AnswerverifiedShow Answer

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct AnswerverifiedShow Answer

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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There is a...
View Answer

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
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Correct Answer
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Correct Answer
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Correct Answer
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