Question 1

Figure 4-30
​ 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Accepted Answer

Supply shi...

Question 2

Figure 4-20 
-Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)  $15 and 400 units.
B)  $20 and 600 units.
C)  $25 and 500 units.
D)  $25 and 800 units.E) A) and C)
F) A) and B)

Question 3

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 D)
F) All of the above

Question 4

If a shortage exists in a market, then we know that the actual price is

Accepted Answer

A)  above the equilibrium price, and quantity supplied is greater than quantity demanded.
B)  above the equilibrium price, and quantity demanded is greater than quantity supplied.
C)  below the equilibrium price, and quantity demanded is greater than quantity supplied.
D)  below the equilibrium price, and quantity supplied is greater than quantity demanded.E) A) and D)
F) B) and C)

Question 5

Individual demand curves are summed horizontally to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 6

Figure 4-27
Panel (a) 
Panel (b)    Panel (c) 
Panel (d)   
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) E) A) and B)
F) A) and C)

Question 7

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. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Accepted Answer

Question 8

Table 4-12
A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows: 
-Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $30, then there will be

Accepted Answer

A)  a shortage of 300 tickets.
B)  a surplus of 300 tickets.
C)  600 tickets sold.
D)  600 tickets unsold.E) All of the above
F) None of the above

Question 9

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) None of the above
F) All of the above

Question 10

Monopolists are price takers.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would not shift the demand curve for mp3 players?

Accepted Answer

A)  a decrease in the price of mp3 players
B)  a fad that makes mp3 players more popular among 12-25 year olds
C)  an increase in the price of digital music downloads, a complement for mp3 players
D)  a decrease in the price of satellite radio, a substitute for mp3 playersE) None of the above
F) A) and D)

Question 12

Figure 4-21 
-Refer to Figure 4-21. What is the equilibrium quantity in this market?

Accepted Answer

A)  2.5 units
B)  5 units
C)  7.5 units
D)  10 unitsE) C) and D)
F) A) and D)

Question 13

Each of the following is a determinant of demand except

Accepted Answer

A)  tastes.
B)  production technology.
C)  expectations.
D)  the prices of related goods.E) None of the above
F) A) and B)

Question 14

A market demand curve shows

Accepted Answer

A)  the relationship between price and the number of buyers in a market.
B)  how quantity demanded changes when the number of sellers changes.
C)  the sum of all prices that individual buyers are willing and able to pay for each possible quantity of the good.
D)  how much of a good all buyers are willing and able to buy at each possible price.E) A) and C)
F) A) and B)

Question 15

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

Accepted Answer

A)  production technology
B)  the price of the good
C)  the prices of inputs
D)  expectationsE) B) and C)
F) All of the above

Question 16

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) A) and D)
F) A) and B)

Question 17

Figure 4-2  
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Accepted Answer

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

Question 18

Which of the following events would cause the price of oranges to fall?

Accepted Answer

A)  There is a shortage of oranges.
B)  The FDA announces that bananas cause strokes, and oranges and bananas are substitutes.
C)  The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges.
D)  All of the above are correct.E) A) and D)
F) B) and C)

Question 19

Figure 4-21 
-Refer to Figure 4-21. What is the equilibrium price in this market?

Accepted Answer

A)  $0
B)  $5
C)  $10
D)  $20E) A) and B)
F) C) and D)

Question 20

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

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

Correct Answer
verified

The supply curve for portable charcoal grills shifts

Correct Answer
verified

Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Correct Answer
verified

Which of the following would not shift the demand curve for mp3 players?

Correct Answer
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Each of the following is a determinant of demand except

Correct Answer
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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. Assuming these are the only four suppliers in this market, the function for market supply can be written as Q^S=

Correct Answer
verified

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct Answer
verified
Supply shi...
View Answer

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

Correct Answer
verified

Individual demand curves are summed horizontally to obtain the market demand curve.

Correct Answer
verified

A market demand curve shows

Correct Answer
verified

If a shortage exists in a market, then we know that the actual price is

Correct Answer
verified

Monopolists are price takers.

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Correct Answer
verified

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

Correct Answer
verified

Which of the following events would cause the price of oranges to fall?

Correct Answer
verified

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Correct Answer
verified

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium price in this market?

Correct Answer
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Correct Answer
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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

Correct AnswerverifiedShow Answer

The supply curve for portable charcoal grills shifts

Correct AnswerverifiedShow Answer

Figure 4-20 -Refer to Figure 4-20. In this market, equilibrium price and quantity, respectively, are

Correct AnswerverifiedShow Answer

Which of the following would not shift the demand curve for mp3 players?

Correct AnswerverifiedShow Answer

Each of the following is a determinant of demand except

Correct AnswerverifiedShow Answer

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. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Correct AnswerverifiedShow Answer

Figure 4-30 ​ -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct AnswerverifiedSupply shi...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Individual demand curves are summed horizontally to obtain the market demand curve.

Correct AnswerverifiedShow Answer

A market demand curve shows

Correct AnswerverifiedShow Answer

If a shortage exists in a market, then we know that the actual price is

Correct AnswerverifiedShow Answer

Monopolists are price takers.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following events would cause the price of oranges to fall?

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $6, then the market quantity demanded is

Correct AnswerverifiedShow Answer

Most studies have found that tobacco and marijuana are substitutes rather than complements.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium price in this market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Correct AnswerverifiedShow Answer

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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. Assuming these are the only four suppliers in this market, the function for market supply can be written as Q^S=

Correct Answer
verified

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct Answer
verified
Supply shi...
View Answer

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