Question 1

If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

Accepted Answer

A) True 
 B)False

Question 2

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) All of the above

Question 3

Figure 4-2  
-Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $6 is

Accepted Answer

A)   4 units.
B)   6 units.
C)   8 units.
D)   12 units.E) A) and C)
F) A) and D)

Question 4

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. 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 4-19.All else equal,a large number of people becoming vegetarians would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) B) and C)
F) B) and D)

Question 6

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for chocolate chip cookies of a decrease in the price of flour?

Accepted Answer

A)   Point A to Point B
B)   Point C to Point B
C)   Point C to Point D
D)   Point A to Point DE) A) and D)
F) None of the above

Question 7

Equilibrium price must increase when demand

Accepted Answer

A)   increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously.
B)   increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously.
C)   decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously.
D)   decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously.E) None of the above
F) B) and C)

Question 8

An increase in the price of a good will

Accepted Answer

A)   increase supply.
B)   decrease supply.
C)   increase quantity supplied.
D)   decrease quantity supplied.E) A) and C)
F) C) and D)

Question 9

Figure 4-10 
-The supply curve for a good is a line that relates

Accepted Answer

A)   profit and quantity supplied.
B)   quantity supplied and quantity demanded.
C)   price and quantity supplied.
D)   price and profit.E) B) and C)
F) A) and B)

Question 10

Years ago,thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall.This behavior indicates

Accepted Answer

A)   the ticket price was above the equilibrium price.
B)   the ticket price was below the equilibrium price.
C)   the ticket price was at the equilibrium price.
D)   nothing about the equilibrium price.E) A) and B)
F) C) and D)

Question 11

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) C) and D)
F) A) and C)

Question 12

A demand schedule is a table that shows the relationship between

Accepted Answer

A)   quantity demanded and quantity supplied.
B)   income and quantity demanded.
C)   price and quantity demanded.
D)   price and income.E) A) and C)
F) All of the above

Question 13

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Accepted Answer

A) True 
 B)False

Question 14

Holding all other things constant,a higher price for ski lift tickets would

Accepted Answer

A)   increase the number of skiers.
B)   increase the price of skis.
C)   decrease the number of skis sold.
D)   decrease the demand for other winter recreational activities.E) All of the above
F) B) and C)

Question 15

Suppose there is a decrease in the price of corn.If corn is an input into the production of ethanol,we would expect the supply curve for ethanol to

Accepted Answer

A)   shift rightward.
B)   shift leftward.
C)   become flatter.
D)   remain unchanged.E) None of the above
F) C) and D)

Question 16

Consider the market for new DVDs.If DVD players became cheaper,buyers expected DVD prices to fall next year,used DVDs became more expensive,and DVD production technology improved,then the equilibrium price of a new DVD would

Accepted Answer

A)   rise.
B)   fall.
C)   stay the same.
D)   could rise,fall,or remain unchanged.E) A) and C)
F) A) and D)

Question 17

Holding all other things constant,a lower price to play a round of golf would

Accepted Answer

A)   decrease the quantity demanded of rounds of golf.
B)   decrease the price of golf clubs.
C)   increase the quantity of golf clubs sold.
D)   increase the demand for other summer recreational activities.E) C) and D)
F) A) and B)

Question 18

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. 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 4-19.All else equal,sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) A) and B)
F) A) and C)

Question 19

Price will rise to eliminate a surplus.

Accepted Answer

A) True 
 B)False

Question 20

In a competitive market,there are so few buyers and so few sellers that each has a significant impact on the market price.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

Figure 4-2 -Refer to Figure 4-2.If Consumer A and Consumer B are the only consumers in the market,then the market quantity demanded when the price is $6 is

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,sellers expecting the price of turkey to rise in the future would cause a current move from

Correct AnswerverifiedShow Answer

Years ago,thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall.This behavior indicates

Correct AnswerverifiedShow Answer

In a competitive market,there are so few buyers and so few sellers that each has a significant impact on the market price.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for chocolate chip cookies of a decrease in the price of flour?

Correct AnswerverifiedShow Answer

Equilibrium price must increase when demand

Correct AnswerverifiedShow Answer

Holding all other things constant,a lower price to play a round of golf would

Correct AnswerverifiedShow Answer

Figure 4-10 -The supply curve for a good is a line that relates

Correct AnswerverifiedShow Answer

An example of a perfectly competitive market would be the

Correct AnswerverifiedShow Answer

When we move along a given supply curve,

Correct AnswerverifiedShow Answer

Price will rise to eliminate a surplus.

Correct AnswerverifiedShow Answer

An increase in the price of pizza will shift the demand curve for pizza to the left.

Correct AnswerverifiedShow Answer

Suppose there is a decrease in the price of corn.If corn is an input into the production of ethanol,we would expect the supply curve for ethanol to

Correct AnswerverifiedShow Answer

Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,a large number of people becoming vegetarians would cause a move from

Correct AnswerverifiedShow Answer

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Correct AnswerverifiedShow Answer

Consider the market for new DVDs.If DVD players became cheaper,buyers expected DVD prices to fall next year,used DVDs became more expensive,and DVD production technology improved,then the equilibrium price of a new DVD would

Correct AnswerverifiedShow Answer

If there is an improvement in the technology used to produce a good,then the supply curve for that good will shift to the left.

Correct AnswerverifiedShow Answer

An increase in the price of a good will

Correct AnswerverifiedShow Answer

Holding all other things constant,a higher price for ski lift tickets would

Correct AnswerverifiedShow Answer

A demand schedule is a table that shows the relationship between

Correct AnswerverifiedShow Answer

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