Question 1

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?

Accepted Answer

A)  The former is a shift of the curve and the latter is a movement along the curve.
B)  The former is a movement along the curve and the latter is a shift of the curve.
C)  Both are shifts of the supply curve.
D)  Both are movements along the curve.

Question 2

Which of the following would definitely result in a higher price in the market for Snickers?

Accepted Answer

A)  demand increases and supply decreases
B)  demand and supply both decrease
C)  demand decreases and supply increases
D)  demand and supply both increase

Question 3

What can be said about economists in general?

Accepted Answer

A)  they do not try to explain people's tastes, but do try to explain what happens when tastes change.
B)  they must be able to explain people's tastes to explain what happens when tastes change.
C)  they do not believe that people's tastes determine demand and therefore ignore the subject of tastes.
D)  they believe that tastes and demand move in opposite directions.

Question 4

Quantity demanded is equal to quantity supplied, at the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 5

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then what could we safely conclude would happen to the equilibrium price of a new DVD?

Accepted Answer

A)  It would rise.
B)  It would fall.
C)  It would stay the same.
D)  We couldn't be sure what it might do.

Question 6

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 7

What might be the reason when quantity demanded has increased at every price?

Accepted Answer

A)  The number of buyers in the market has decreased.
B)  Income has increased and this good is an inferior good.
C)  The consumer prefers another good more than this good.
D)  The price of a substitute good has increased.

Question 8

Market demand is given as Qd = 120 - P. Market supply is given as Qs = 4P. What would result if the market price were $15?

Accepted Answer

A)  a shortage of 45
B)  a surplus of 45
C)  a surplus of 60
D)  a shortage of 60

Question 9

Suppose that the Canadian Medical Association announces that men who shave their heads are less likely to die of heart failure. What could we expect to happen?

Accepted Answer

A)  the current demand for hair gel to increase
B)  the current demand for razors to increase
C)  the current demand for combs to increase
D)  the current demand for hair dye for men to increase

Question 10

Which of the following is correct?

Accepted Answer

A)  Buyers determine supply and sellers determine demand.
B)  Buyers determine demand and sellers determine supply.
C)  Buyers and sellers as one group determine supply.
D)  Buyers and sellers as one group determine demand.

Question 11

Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and quantity have changed.
a.Winter starts and the weather turns sharply colder.
b.The price of tea, a substitute for hot chocolate, falls.
c.The price of cocoa beans decreases.
d.The price of whipped cream falls.
e.A better method of harvesting cocoa beans is introduced.
f. The Canadian Medical Association announces that hot chocolate cures acne.g. Protesting farmers dump millions of gallons of milk, causing the price of milk to rise.h. Consumer income falls because of a recession and hot chocolate is considered a normal good.
i. Producers expect the price of hot chocolate to increase next month.
j. Currently, the price of hot chocolate is $0.50 per cup above equilibrium.

Accepted Answer

The answer of Suppose we are analyzing the market for...

Question 12

Table 4-3
 
-Refer to Table 4-3. What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Accepted Answer

A)  space A
B)  space B
C)  space C
D)  space D

Question 13

Table 4-1
The table shows individual demand schedules for a market.
 
-Refer to Table 4-1. When the price of the good is $1.00, what is the quantity demanded in this market?

Accepted Answer

A)  42 units
B)  31 units
C)  24 units
D)  14 units

Question 14

Figure 4-4 
-Refer to Figure 4-4. If the price is $25, what would happen?

Accepted Answer

A)  There would be a surplus of 300 and the price would fall.
B)  There would be a surplus of 200 and the price would fall.
C)  There would be a shortage of 200 and the price would rise.
D)  There would be a shortage of 300 and the price would rise.

Question 15

Figure 4-1 1 called? A) a decrease in supply B) a decrease in quantity supplied C) an increase in supply D) an increase in quantity supplied" class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-1. What is the movement from S to S1 called?

Accepted Answer

A)  a decrease in supply
B)  a decrease in quantity supplied
C)  an increase in supply
D)  an increase in quantity supplied

Question 16

Figure 4-6 1 called? A) an increase in demand B) a decrease in demand C) a decrease in quantity demanded D) an increase in quantity demanded" class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-6. What is the shift from D to D1 called?

Accepted Answer

A)  an increase in demand
B)  a decrease in demand
C)  a decrease in quantity demanded
D)  an increase in quantity demanded

Question 17

Market demand is given as Qd = 100 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $20?

Accepted Answer

A)  a shortage of 30
B)  a surplus of 60
C)  a surplus of 30
D)  a shortage of 60

Question 18

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. What would result if the market price were $7?

Accepted Answer

A)  a shortage of 14
B)  a surplus of 14
C)  a surplus of 12
D)  a shortage of 12

Question 19

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have risen over time. Which of the following would be most consistent with this observation?

Accepted Answer

A)  Consumers have experienced an increase in income and beef-production technology has improved.
B)  The price of chicken has risen and the price of steak sauce has fallen.
C)  Consumer tastes have changed so as to prefer beef less than before.
D)  The demand curve for beef must be positively sloped.

Question 20

What could be one result of a cold snap in Florida?

Accepted Answer

A)  an increase in farm machinery prices
B)  an increase in the price of diesel fuel used in farming
C)  an increase in migrant farm workers' wages
D)  an increase in the price of oranges

Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 100 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $20?

Correct Answer
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Market demand is given as Qd = 120 - P. Market supply is given as Qs = 4P. What would result if the market price were $15?

Correct Answer
verified

What can be said about economists in general?

Correct Answer
verified

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?

Correct Answer
verified

Which of the following would definitely result in a higher price in the market for Snickers?

Correct Answer
verified

Figure 4-1 -Refer to Figure 4-1. What is the movement from S to S₁ called?

Correct Answer
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What might be the reason when quantity demanded has increased at every price?

Correct Answer
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What could be one result of a cold snap in Florida?

Correct Answer
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Table 4-1 The table shows individual demand schedules for a market. -Refer to Table 4-1. When the price of the good is $1.00, what is the quantity demanded in this market?

Correct Answer
verified

Table 4-3 -Refer to Table 4-3. What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Correct Answer
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Figure 4-6 -Refer to Figure 4-6. What is the shift from D to D₁ called?

Correct Answer
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Which of the following is correct?

Correct Answer
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Beef is a normal good. You observe that both the equilibrium price and quantity of beef have risen over time. Which of the following would be most consistent with this observation?

Correct Answer
verified

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. What would result if the market price were $7?

Correct Answer
verified

Quantity demanded is equal to quantity supplied, at the equilibrium price.

Correct Answer
verified

Suppose that the Canadian Medical Association announces that men who shave their heads are less likely to die of heart failure. What could we expect to happen?

Correct Answer
verified

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then what could we safely conclude would happen to the equilibrium price of a new DVD?

Correct Answer
verified

Figure 4-4 -Refer to Figure 4-4. If the price is $25, what would happen?

Correct Answer
verified

Correct Answer
verified

It is not possible for demand and supply to shift at the same time.

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 100 - 2P. Market supply is given as Qs = P + 10. What would result if the market price were $20?

Correct AnswerverifiedShow Answer

Market demand is given as Qd = 120 - P. Market supply is given as Qs = 4P. What would result if the market price were $15?

Correct AnswerverifiedShow Answer

What can be said about economists in general?

Correct AnswerverifiedShow Answer

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, what do we know?

Correct AnswerverifiedShow Answer

Which of the following would definitely result in a higher price in the market for Snickers?

Correct AnswerverifiedShow Answer

Figure 4-1 -Refer to Figure 4-1. What is the movement from S to S1 called?

Correct AnswerverifiedShow Answer

What might be the reason when quantity demanded has increased at every price?

Correct AnswerverifiedShow Answer

What could be one result of a cold snap in Florida?

Correct AnswerverifiedShow Answer

Table 4-1 The table shows individual demand schedules for a market. -Refer to Table 4-1. When the price of the good is $1.00, what is the quantity demanded in this market?

Correct AnswerverifiedShow Answer

Table 4-3 -Refer to Table 4-3. What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Correct AnswerverifiedShow Answer

Figure 4-6 -Refer to Figure 4-6. What is the shift from D to D1 called?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have risen over time. Which of the following would be most consistent with this observation?

Correct AnswerverifiedShow Answer

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. What would result if the market price were $7?

Correct AnswerverifiedShow Answer

Quantity demanded is equal to quantity supplied, at the equilibrium price.

Correct AnswerverifiedShow Answer

Suppose that the Canadian Medical Association announces that men who shave their heads are less likely to die of heart failure. What could we expect to happen?

Correct AnswerverifiedShow Answer

Consider the market for new DVDs. If DVD players became cheaper, buyers expected DVD prices to fall next year, used DVDs became more expensive, and DVD production technology improved, then what could we safely conclude would happen to the equilibrium price of a new DVD?

Correct AnswerverifiedShow Answer

Figure 4-4 -Refer to Figure 4-4. If the price is $25, what would happen?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

It is not possible for demand and supply to shift at the same time.

Correct AnswerverifiedShow Answer

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Figure 4-1 -Refer to Figure 4-1. What is the movement from S to S₁ called?

Correct Answer
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Figure 4-6 -Refer to Figure 4-6. What is the shift from D to D₁ called?

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