Question 1

Which of the following might cause the demand curve for an inferior good to shift to the left?

Accepted Answer

A)  a decrease in income
B)  an increase in the price of a substitute
C)  an increase in the price of a complement
D)  None of the above is correct.E) A) and B)
F) All of the above

Question 2

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Accepted Answer

A)  fall in six months but not now.
B)  increase in six months when the price goes up.
C)  fall now.
D)  increase now to meet as much demand as possible.E) B) and C)
F) None of the above

Question 3

If toast and butter are complements, then which of the following would increase the demand for toast?

Accepted Answer

A)  a decrease in the price of toast
B)  a decrease in the price of butter
C)  an increase in the price of butter
D)  Both a)  and b)  are correct.E) None of the above
F) All of the above

Question 4

If Miguel expects to earn a higher income next month, he may choose to

Accepted Answer

A)  save more now and spend less of his current income on goods and services.
B)  save less now and spend more of his current income on goods and services.
C)  decrease his current demand for goods and services.
D)  move along his current demand curves for goods and services.E) B) and D)
F) All of the above

Question 5

When quantity demanded decreases at every possible price, the demand curve has

Accepted Answer

A)  shifted to the left.
B)  shifted to the right.
C)  not shifted; rather, we have moved along the demand curve to a new point on the same curve.
D)  not shifted; rather, the demand curve has become flatter.E) B) and C)
F) B) and D)

Question 6

The sum of all the individual supply curves for a product is called

Accepted Answer

A)  total supply.
B)  market supply.
C)  aggregate supply.
D)  total output.E) None of the above
F) C) and D)

Question 7

Table 4-1
   Price  Qurantit; Demanded  by Michelle  Qurintity Demtanded  by Laura  Quantity Damanded  by Hillary $55411$46613$37815$281017191219$0101421\begin{array} { | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Qurantit; Demanded } \	ext { by Michelle }\end{array} & \begin{array} { c } 	ext { Qurintity Demtanded } \	ext { by Laura }\end{array} & \begin{array} { c } 	ext { Quantity Damanded } \	ext { by Hillary }\end{array} \\hline \$ 5 & 5 & 4 & 11 \\hline \$ 4 & 6 & 6 & 13 \\hline \$ 3 & 7 & 8 & 15 \\hline \$ 2 & 8 & 10 & 17 \\hline 1 & 9 & 12 & 19 \\hline \$ 0 & 10 & 14 & 21 \\hline\end{array} Price $5$4$3$21$0​ Qurantit; Demanded  by Michelle ​5678910​ Qurintity Demtanded  by Laura ​468101214​ Quantity Damanded  by Hillary ​111315171921​​ 
-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) B) and C)
F) A) and B)

Question 8

Figure 4-10 
-Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?

Accepted Answer

A)  a decrease in the price of disposable ballpoint pens
B)  an increase in the price of fountain pens
C)  an increase in the price of ink
D)  an improvement in technology that allows firms to use less labor in the production of disposable ballpoint pensE) A) and B)
F) All of the above

Question 9

Figure 4-16 
-Refer to Figure 4-16. In this market, equilibrium price and quantity, respectively, are

Accepted Answer

A)  $10 and 30 units.
B)  $10 and 50 units.
C)  $10 and 70 units.
D)  $4 and 50 units.E) None of the above
F) A) and B)

Question 10

Economists normally

Accepted Answer

A)  do not try to explain people's tastes, but they do try to explain what happens when tastes change.
B)  believe that they must be able to explain people's tastes in order to explain what happens when tastes change.
C)  do not believe that people's tastes determine demand, so they ignore the subject of tastes.
D)  incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.E) B) and D)
F) None of the above

Question 11

When the price of a good is higher than the equilibrium price,

Accepted Answer

A)  a shortage will exist.
B)  buyers desire to purchase more than is produced.
C)  sellers desire to produce and sell more than buyers wish to purchase.
D)  quantity demanded exceeds quantity supplied.E) A) and D)
F) None of the above

Question 12

A rightward shift of a supply curve is called a(n)

Accepted Answer

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

Question 13

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-20. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Accepted Answer

A)  x to y.
B)  y to x.
C)  SA to SB.
D)  SB to SA.E) A) and C)
F) B) and D)

Question 14

If the price of a good is low,

Accepted Answer

A)  firms would increase profit by increasing output.
B)  the quantity supplied of the good could be zero.
C)  the supply curve for the good will shift to the left.
D)  firms can and should raise the price of the product.E) B) and D)
F) All of the above

Question 15

If buyers and sellers in a certain market are price takers, then individually

Accepted Answer

A)  they have no influence on market price.
B)  they have some influence on market price but that influence is limited.
C)  buyers will be able to find prices lower than those determined in the market.
D)  sellers will find it difficult to sell all they want to sell at the market price.E) A) and C)
F) All of the above

Question 16

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) B) and D)

Question 17

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés cause heart attacks?

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 decrease, and the effect on equilibrium quantity would be ambiguous.
D)  The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.E) A) and B)
F) A) and C)

Question 18

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

Question 19

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Accepted Answer

A) True 
 B)False

Question 20

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés cause heart attacks?

Correct Answer
verified

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct Answer
verified

Figure 4-10 -Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?

Correct Answer
verified

Economists normally

Correct Answer
verified

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

Correct Answer
verified

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Correct Answer
verified

Correct Answer
verified

A rightward shift of a supply curve is called a(n)

Correct Answer
verified

When the price of a good is higher than the equilibrium price,

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. In this market, equilibrium price and quantity, respectively, are

Correct Answer
verified

If buyers and sellers in a certain market are price takers, then individually

Correct Answer
verified

Which of the following might cause the demand curve for an inferior good to shift to the left?

Correct Answer
verified

When quantity demanded decreases at every possible price, the demand curve has

Correct Answer
verified

The sum of all the individual supply curves for a product is called

Correct Answer
verified

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Correct Answer
verified

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct Answer
verified

When we move along a given supply curve,

Correct Answer
verified

If Miguel expects to earn a higher income next month, he may choose to

Correct Answer
verified

If the price of a good is low,

Correct Answer
verified

If toast and butter are complements, then which of the following would increase the demand for toast?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés cause heart attacks?

Correct AnswerverifiedShow Answer

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct AnswerverifiedShow Answer

Figure 4-10 -Refer to Figure 4-10. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?

Correct AnswerverifiedShow Answer

Economists normally

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A rightward shift of a supply curve is called a(n)

Correct AnswerverifiedShow Answer

When the price of a good is higher than the equilibrium price,

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. In this market, equilibrium price and quantity, respectively, are

Correct AnswerverifiedShow Answer

If buyers and sellers in a certain market are price takers, then individually

Correct AnswerverifiedShow Answer

Which of the following might cause the demand curve for an inferior good to shift to the left?

Correct AnswerverifiedShow Answer

When quantity demanded decreases at every possible price, the demand curve has

Correct AnswerverifiedShow Answer

The sum of all the individual supply curves for a product is called

Correct AnswerverifiedShow Answer

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

Correct AnswerverifiedShow Answer

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Correct AnswerverifiedShow Answer

When we move along a given supply curve,

Correct AnswerverifiedShow Answer

If Miguel expects to earn a higher income next month, he may choose to

Correct AnswerverifiedShow Answer

If the price of a good is low,

Correct AnswerverifiedShow Answer

If toast and butter are complements, then which of the following would increase the demand for toast?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified