Question 1

Along a supply curve,

Accepted Answer

A)  supply changes as price changes.
B)  quantity supplied changes as price changes.
C)  supply changes as technology changes.
D)  quantity supplied changes as technology changes.

Question 2

Price controls date back to

Accepted Answer

A)  World War II.
B)  the U.S.Revolutionary War.
C)  thousands of years, at least back to ancient Babylonia.
D)  the 1970s.
E)  the last 20 years.

Question 3

Figure 4-23 
-In Figure 4-23, which of the following movements would be caused by a change in income?

Accepted Answer

A)  A to C
B)  C to A
C)  B to D
D)  B to A

Question 4

"Demand" is a series of quantities demanded, one for each person in the market.

Accepted Answer

A) True 
 B)False

Question 5

The following are the equations for the supply and demand curves in the market for weezils:   where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If the government imposes a price floor of $4 a weezil, how many weezils will be sold?

Accepted Answer

A)  5
B)  10
C)  12
D)  14

Question 6

A common misperception about consumer demand is that

Accepted Answer

A)  demand depends on many other variables.
B)  price is a major determinant of quantity.
C)  it is a fixed amount.
D)  quantity cannot be determined in advance.
E)  All of these responses are correct.

Question 7

A severe freeze has damaged the Florida orange crop.The effect on the market for oranges will be a left shift of

Accepted Answer

A)  demand, as consumers try to economize because of the shortage.
B)  both the supply and demand curves.
C)  the supply curve.
D)  the supply curve and a right shift in the demand curve, and the outcome will be a higher price

Question 8

The mechanism of supply and demand is

Accepted Answer

A)  a fundamental tool in both microeconomics and macroeconomics.
B)  the only real "law" of economics.
C)  a fundamental tool only in microeconomics.
D)  a fundamental tool only in macroeconomics.

Question 9

When a demand curve is constructed, each point that demand curve represents

Accepted Answer

A)  the demand for the product.
B)  the quantity demanded at that price.
C)  the amount that people want to buy.
D)  the amount people want to buy at different income levels.
E)  All of these responses are correct.

Question 10

A surplus occurs when price is higher than the market equilibrium.

Accepted Answer

A) True 
 B)False

Question 11

A supply curve slopes upward because quantity supplied is higher when price is higher.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following suggests that the "laws" of supply and demand are being disobeyed?

Accepted Answer

A)  Outside forces disturbing an equilibrium
B)  Persistent shortages or surpluses
C)  The market never moving from an equilibrium
D)  "Other things" not always being equal

Question 13

An increase in price will decrease demand.

Accepted Answer

A) True 
 B)False

Question 14

1 B) P2 C) P3 D) There will be no surplus at the prices shown." class="answers-bank-image d-inline" rel="preload" >
-A surplus will tend to occur at which price in Figure 4-21?

Accepted Answer

A)  P1
B)  P2
C)  P3
D)  There will be no surplus at the prices shown.

Question 15

The following are the equations for the supply and demand curves in the market for weezils:   where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.According to the data given, when the market is in Equilibrium, how many weezils are sold?

Accepted Answer

A)  3
B)  5
C)  11
D)  14

Question 16

The U.S.government restricts the production of peanuts by limiting production licenses.By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted.This program has the same effect as a

Accepted Answer

A)  price ceiling.
B)  price floor.
C)  opportunity cost.
D)  shortage.
E)  efficiency move.

Question 17

A black market develops only when quantity demanded exceeds quantity supplied.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the correct way to describe equilibrium in a market?

Accepted Answer

A)  At equilibrium, demand equals supply.
B)  At equilibrium, quantity demanded equals quantity supplied.
C)  At equilibrium, market forces are no longer at work.
D)  Equilibrium is a tendency, a state of perpetual motion.
E)  Equilibrium is the best combination of price and quantity.

Question 19

An increase in the price of gasoline shifts the demand for tires to the

Accepted Answer

A)  left, because gasoline and tires are substitutes.
B)  left, because gasoline and tires are normally used together.
C)  right, because gasoline and tires are substitutes.
D)  right, because gasoline and tires are normally used together.

Question 20

The following are the equations for the supply and demand curves in the market for weezils:   where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-To have an effect on the market, a price floor should be set at a price

Accepted Answer

A)  above the equilibrium price.
B)  equal to the equilibrium price.
C)  below the equilibrium price.
D)  at any price on the supply curve.

Exam 4: Supply and Demand: an Initial Look

The following are the equations for the supply and demand curves in the market for weezils: where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars. -To have an effect on the market, a price floor should be set at a price

Correct Answer
verified

Which of the following is the correct way to describe equilibrium in a market?

Correct Answer
verified

An increase in price will decrease demand.

Correct Answer
verified

Correct Answer
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A supply curve slopes upward because quantity supplied is higher when price is higher.

Correct Answer
verified

Along a supply curve,

Correct Answer
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"Demand" is a series of quantities demanded, one for each person in the market.

Correct Answer
verified

Which of the following suggests that the "laws" of supply and demand are being disobeyed?

Correct Answer
verified

Correct Answer
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When a demand curve is constructed, each point that demand curve represents

Correct Answer
verified

A surplus occurs when price is higher than the market equilibrium.

Correct Answer
verified

The mechanism of supply and demand is

Correct Answer
verified

The U.S.government restricts the production of peanuts by limiting production licenses.By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted.This program has the same effect as a

Correct Answer
verified

A black market develops only when quantity demanded exceeds quantity supplied.

Correct Answer
verified

A severe freeze has damaged the Florida orange crop.The effect on the market for oranges will be a left shift of

Correct Answer
verified

A common misperception about consumer demand is that

Correct Answer
verified

An increase in the price of gasoline shifts the demand for tires to the

Correct Answer
verified

-A surplus will tend to occur at which price in Figure 4-21?

Correct Answer
verified

Figure 4-23 -In Figure 4-23, which of the following movements would be caused by a change in income?

Correct Answer
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Price controls date back to

Correct Answer
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Exam 4: Supply and Demand: an Initial Look

The following are the equations for the supply and demand curves in the market for weezils: where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars. -To have an effect on the market, a price floor should be set at a price

Correct AnswerverifiedShow Answer

Which of the following is the correct way to describe equilibrium in a market?

Correct AnswerverifiedShow Answer

An increase in price will decrease demand.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A supply curve slopes upward because quantity supplied is higher when price is higher.

Correct AnswerverifiedShow Answer

Along a supply curve,

Correct AnswerverifiedShow Answer

"Demand" is a series of quantities demanded, one for each person in the market.

Correct AnswerverifiedShow Answer

Which of the following suggests that the "laws" of supply and demand are being disobeyed?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a demand curve is constructed, each point that demand curve represents

Correct AnswerverifiedShow Answer

A surplus occurs when price is higher than the market equilibrium.

Correct AnswerverifiedShow Answer

The mechanism of supply and demand is

Correct AnswerverifiedShow Answer

The U.S.government restricts the production of peanuts by limiting production licenses.By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted.This program has the same effect as a

Correct AnswerverifiedShow Answer

A black market develops only when quantity demanded exceeds quantity supplied.

Correct AnswerverifiedShow Answer

A severe freeze has damaged the Florida orange crop.The effect on the market for oranges will be a left shift of

Correct AnswerverifiedShow Answer

A common misperception about consumer demand is that

Correct AnswerverifiedShow Answer

An increase in the price of gasoline shifts the demand for tires to the

Correct AnswerverifiedShow Answer

-A surplus will tend to occur at which price in Figure 4-21?

Correct AnswerverifiedShow Answer

Figure 4-23 -In Figure 4-23, which of the following movements would be caused by a change in income?

Correct AnswerverifiedShow Answer

Price controls date back to

Correct AnswerverifiedShow Answer

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