Question 1

Figure 4-5 
-Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Accepted Answer

A)   an increase in the price of tennis balls
B)   a decrease in the price of tennis racquets
C)   an expectation by buyers that their incomes will increase in the very near future
D)   a decrease in the number of people in the United States under age 70E) A) and D)
F) A) and C)

Question 2

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Accepted Answer

A) True 
 B)False

Question 3

Individual supply curves are summed vertically to obtain the market supply curve.

Accepted Answer

A) True 
 B)False

Question 4

Table 4-11 
-Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Accepted Answer

A)   $2 and 50 units.
B)   $6 and 30 units.
C)   $6 and 60 units.
D)   $12 and 30 units.E) B) and D)
F) A) and B)

Question 5

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Accepted Answer

A)   applies to most goods in the economy.
B)   is represented by a downward-sloping demand curve.
C)   is referred to as the law of demand.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 6

Figure 4-28 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

Accepted Answer

The answer of Figure 4-28 
-Refer to Figure 4-28. Using...

Question 7

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Accepted Answer

A) True 
 B)False

Question 8

A decrease in demand is represented by a

Accepted Answer

A)   movement downward and to the right along a demand curve.
B)   movement upward and to the left along a demand curve.
C)   rightward shift of a demand curve.
D)   leftward shift of a demand curve.E) C) and D)
F) All of the above

Question 9

Which of these statements best represents the law of supply?

Accepted Answer

A)   When input prices increase, sellers produce less of the good.
B)   When production technology improves, sellers produce less of the good.
C)   When the price of a good decreases, sellers produce less of the good.
D)   When sellers' supplies of a good increase, the price of the good increases.E) A) and B)
F) A) and C)

Question 10

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Accepted Answer

A)   the price of tennis balls increases.
B)   the price of tennis balls decreases.
C)   the price of tennis balls does not change.
D)   there is no longer a market for tennis balls.E) B) and D)
F) A) and D)

Question 11

The demand curve is the upward-sloping line relating price and quantity demanded.

Accepted Answer

A) True 
 B)False

Question 12

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Accepted Answer

The answer of Since individual buyers and individual sellers in...

Question 13

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 only members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

Accepted Answer

A)   $10
B)   $15
C)   $20
D)   $25E) A) and C)
F) C) and D)

Question 14

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Accepted Answer

A)   shift rightward.
B)   shift leftward.
C)   become flatter.
D)   remain unchanged.E) A) and B)
F) A) and C)

Question 15

Table 4-16
The following table shows the supply and demand schedules in a market. 
-Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

Accepted Answer

The price ...

Question 16

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

Question 17

For a market for a good or service to exist, there must be a

Accepted Answer

A)   group of buyers and sellers.
B)   specific time and place at which the good or service is traded.
C)   high degree of organization present.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 18

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Accepted Answer

The supply...

Question 19

The difference between a supply schedule and a supply curve is that a supply schedule

Accepted Answer

A)   incorporates demand and a supply curve does not.
B)   incorporates profit and a supply curve does not.
C)   can shift, but a supply curve cannot shift.
D)   is a table, and a supply curve is drawn on a graph.E) A) and D)
F) A) and C)

Question 20

Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed. 
-Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

Accepted Answer

A)   -200 cases
B)   -100 cases
C)   100 cases
D)   200 casesE) None of the above
F) B) and D)

Exam 4: The Market Forces of Supply and Demand

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

Correct Answer
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The price ...
View Answer

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct Answer
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The supply...
View Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Correct Answer
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Correct Answer
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The difference between a supply schedule and a supply curve is that a supply schedule

Correct Answer
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Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Correct Answer
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Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

Correct Answer
verified

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Correct Answer
verified

Individual supply curves are summed vertically to obtain the market supply curve.

Correct Answer
verified

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Correct Answer
verified

Which of these statements best represents the law of supply?

Correct Answer
verified

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Correct Answer
verified

The demand curve is the upward-sloping line relating price and quantity demanded.

Correct Answer
verified

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Correct Answer
verified

Table 4-11 -Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Correct Answer
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Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

Correct Answer
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Correct Answer
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Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Correct Answer
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For a market for a good or service to exist, there must be a

Correct Answer
verified

A decrease in demand is represented by a

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

Correct AnswerverifiedThe price ...View AnswerShow Answer

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct AnswerverifiedThe supply...View AnswerShow Answer

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The difference between a supply schedule and a supply curve is that a supply schedule

Correct AnswerverifiedShow Answer

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

Correct AnswerverifiedShow Answer

Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

Correct AnswerverifiedShow Answer

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

Correct AnswerverifiedShow Answer

Individual supply curves are summed vertically to obtain the market supply curve.

Correct AnswerverifiedShow Answer

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Correct AnswerverifiedShow Answer

Which of these statements best represents the law of supply?

Correct AnswerverifiedShow Answer

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Correct AnswerverifiedShow Answer

The demand curve is the upward-sloping line relating price and quantity demanded.

Correct AnswerverifiedShow Answer

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded

Correct AnswerverifiedShow Answer

Table 4-11 -Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Correct AnswerverifiedShow Answer

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Correct AnswerverifiedShow Answer

For a market for a good or service to exist, there must be a

Correct AnswerverifiedShow Answer

A decrease in demand is represented by a

Correct AnswerverifiedShow Answer

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The price ...
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The supply...
View Answer

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