Question 1

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

Accepted Answer

A)   The demand for gasoline will increase.
B)   The demand for gasoline will decrease.
C)   The demand for gasoline will be unaffected.
D)   The supply of gasoline will increase.E) B) and C)
F) A) and B)

Question 2

A monopoly is a market with one

Accepted Answer

A)   seller, and that seller is a price taker.
B)   seller, and that seller sets the price.
C)   buyer, and that buyer is a price taker.
D)   buyer, and that buyer sets the price.E) B) and C)
F) B) and D)

Question 3

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following: • x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 5.
• The slope of the supply curve is 1.
Then there is currently a

Accepted Answer

A)   shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
B)   shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.
C)   surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
D)   surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.E) B) and D)
F) All of the above

Question 4

A decrease in input costs to firms in a market will result in an)

Accepted Answer

A)   decrease in equilibrium price and an increase in equilibrium quantity.
B)   decrease in equilibrium price and a decrease in equilibrium quantity.
C)   increase in equilibrium price and a decrease in equilibrium quantity.
D)   increase in equilibrium price and an increase in equilibrium quantity.E) None of the above
F) B) and C)

Question 5

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) A) and D)
F) None of the above

Question 6

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Accepted Answer

A)   Price will fall, and the effect on quantity is ambiguous.
B)   Price will rise, and the effect on quantity is ambiguous.
C)   Quantity will fall, and the effect on price is ambiguous.
D)   Quantity will rise, and the effect on price is ambiguous.E) A) and B)
F) A) and C)

Question 7

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Accepted Answer

A)   shifts to the right.
B)   shifts to the left.
C)   shifts either to the right or to the left, but we cannot determine the direction of the shift from the given information.
D)   will not shift; rather, the demand curve for Mustangs will shift to the right next month.E) A) and C)
F) A) and B)

Question 8

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause an)

Accepted Answer

A)   increase in the demand for wine, increasing price.
B)   increase in the supply of wine, decreasing price.
C)   decrease in the demand for wine, decreasing price.
D)   decrease in the supply of wine, increasing price.E) A) and D)
F) None of the above

Question 9

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 B)
F) All of the above

Question 10

An increase in which of the following would shift the supply curve for gasoline to the right?

Accepted Answer

A)   demand for gasoline
B)   price of gasoline
C)   number of producers of gasoline
D)   price of oil, an input into the production of gasolineE) None of the above
F) A) and B)

Question 11

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Accepted Answer

A)   The number of sellers of mangos decreases.
B)   There is an advance in technology that reduces the cost of producing mangos.
C)   The price of mangos falls.
D)   The price of fertilizer increases, and fertilizer is an input in the production of mangos.E) All of the above
F) A) and B)

Question 12

A decrease in demand will cause a decrease in price, which will cause a decrease in supply.

Accepted Answer

A) True 
 B)False

Question 13

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

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) All of the above
F) C) and D)

Question 14

A improvement in production technology will shift the

Accepted Answer

A)   supply curve to the right.
B)   supply curve to the left.
C)   demand curve to the right.
D)   demand curve to the left.E) None of the above
F) A) and B)

Question 15

Figure 4-18 
-Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Accepted Answer

A)   $15 and 200 units.
B)   $25 and 600 units.
C)   $25 and 400 units.
D)   $35 and 200 units.E) C) and D)
F) B) and C)

Question 16

Figure 4-16 
-Refer to Figure 4-16. The shift from S to S' could be caused by an

Accepted Answer

A)   increase in the price of the good.
B)   improvement in production technology.
C)   increase in income.
D)   increase in input prices.E) A) and D)
F) B) and D)

Question 17

Figure 4-18 
-Refer to Figure 4-18. At a price of $35, there would be

Accepted Answer

A)   a shortage, and the price would tend to rise from $35 to a higher price.
B)   a surplus, and the price would tend to rise from $35 to a higher price.
C)   excess demand, and the price would tend to fall from $35 to a lower price.
D)   excess supply, and the price would tend to fall from $35 to a lower price.E) B) and D)
F) None of the above

Question 18

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Accepted Answer

A) True 
 B)False

Question 19

An example of a perfectly competitive market would be the market for

Accepted Answer

A)   electricity.
B)   soybeans.
C)   coffee shops.
D)   restaurants.E) A) and C)
F) C) and D)

Question 20

Pizza is a normal good if the demand

Accepted Answer

A)   for pizza rises when income rises.
B)   for pizza rises when the price of pizza falls.
C)   curve for pizza slopes upward.
D)   curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.E) A) and C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Correct Answer
verified

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

Correct Answer
verified

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

Correct Answer
verified

Correct Answer
verified

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct Answer
verified

A decrease in input costs to firms in a market will result in an)

Correct Answer
verified

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18. At a price of $35, there would be

Correct Answer
verified

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Correct Answer
verified

Correct Answer
verified

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct Answer
verified

A improvement in production technology will shift the

Correct Answer
verified

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

Correct Answer
verified

A decrease in demand will cause a decrease in price, which will cause a decrease in supply.

Correct Answer
verified

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause an)

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Correct Answer
verified

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Correct Answer
verified

An example of a perfectly competitive market would be the market for

Correct Answer
verified

Pizza is a normal good if the demand

Correct Answer
verified

A monopoly is a market with one

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in which of the following would shift the supply curve for gasoline to the right?

Correct AnswerverifiedShow Answer

A decrease in input costs to firms in a market will result in an)

Correct AnswerverifiedShow Answer

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs. As a result of this information, today's demand curve for Mustangs

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. At a price of $35, there would be

Correct AnswerverifiedShow Answer

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become more expensive, digital cameras become cheaper, the cost of the resources needed to manufacture traditional film falls, and more firms decide to manufacture traditional film?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

A improvement in production technology will shift the

Correct AnswerverifiedShow Answer

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' could be caused by an

Correct AnswerverifiedShow Answer

A decrease in demand will cause a decrease in price, which will cause a decrease in supply.

Correct AnswerverifiedShow Answer

Exceptionally favorable growing conditions in the vineyards of Napa Valley would cause an)

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18. Equilibrium price and quantity are, respectively,

Correct AnswerverifiedShow Answer

Which of the following events would cause a movement downward and to the left along the supply curve for mangos?

Correct AnswerverifiedShow Answer

An example of a perfectly competitive market would be the market for

Correct AnswerverifiedShow Answer

Pizza is a normal good if the demand

Correct AnswerverifiedShow Answer

A monopoly is a market with one

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