Question 1

If macaroni and cheese is an inferior good, then an increase in

Accepted Answer

A)   the price will cause the demand curve for macaroni and cheese to shift to the left.
B)   the price will cause the demand curve for macaroni and cheese to shift to the right.
C)   a consumer's income will cause the demand curve for macaroni and cheese to shift to the left.
D)   a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.

Question 2

If the number of sellers in a market increases, then the

Accepted Answer

A)   demand in that market will increase.
B)   supply in that market will increase.
C)   supply in that market will decrease.
D)   demand in that market will decrease.

Question 3

Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Accepted Answer

A)   The Green Bay Packers make it to the Super Bowl.
B)   The price of the jerseys increases by $15.
C)   The technology of sewing machines use to make the jerseys improves.
D)   The cost of the fabric used to make the jerseys increases.

Question 4

Table 4-3 
-Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

Accepted Answer

A)   decreases by 1.75 units.
B)   increases by 2 units.
C)   decreases by 7 units.
D)   decreases by 24 units.

Question 5

Figure 4-21 
-Refer to Figure 4-21. What is the equilibrium quantity in this market?

Accepted Answer

A)   2.5 units
B)   5 units
C)   7.5 units
D)   10 units

Question 6

A surplus is the same as an excess demand.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following events must result in a higher price in the market for cigars?

Accepted Answer

A)   Demand for cigars increases, and supply of cigars decreases.
B)   Demand for cigars and supply of cigars both decrease.
C)   Demand for cigars decreases, and supply of cigars increases.
D)   Demand for cigars and supply of cigars both increase

Question 8

The supply curve for stand up paddle boards

Accepted Answer

A)   shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
B)   shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph.
C)   does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
D)   does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph.

Question 9

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.

Question 10

According to the law of demand, when price increases the quantity demanded of a good

Accepted Answer

The answer of According to the law of demand, when...

Question 11

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)   decreases, and the supply of tires increases.
B)   is unaffected, and the supply of tires decreases.
C)   is unaffected, and the supply of tires increases.
D)   None of the above is necessarily correct.

Question 12

An early frost in the vineyards of Napa Valley would cause a(n)

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.

Question 13

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Accepted Answer

The equilibrium pric...

Question 14

Table 4-8 
-Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Accepted Answer

A)   6 units.
B)   12 units.
C)   18 units.
D)   24 units.

Question 15

Figure 4-15 
-Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

Accepted Answer

A)   a decrease in the price of butter
B)   an increase in the price of margarine
C)   an increase in the price of milk
D)   an improvement in technology that allows firms to use less labor in the production of butter

Question 16

The law of supply states that, other things equal, an increase in

Accepted Answer

A)   price causes quantity supplied to increase.
B)   price causes quantity supplied to decrease.
C)   quantity supplied causes price to increase.
D)   quantity supplied causes price to decrease.

Question 17

Equilibrium quantity must decrease when demand

Accepted Answer

A)   increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.
B)   increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
C)   decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.
D)   decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

Question 18

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

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 D

Question 19

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Accepted Answer

The curren...

Question 20

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 gasoline

Exam 4: The Market Forces of Supply and Demand

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

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Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

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A surplus is the same as an excess demand.

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Which of the following events must result in a higher price in the market for cigars?

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

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The supply curve for stand up paddle boards

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Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

Correct AnswerverifiedThe curren...View AnswerShow Answer

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Correct AnswerverifiedShow Answer

If macaroni and cheese is an inferior good, then an increase in

Correct AnswerverifiedShow Answer

If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for orange juice of an announcement by the American Dental Association that orange juice erodes tooth enamel?

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Which of the following would shift the supply of Green Bay Packers football jerseys to the left?

Correct AnswerverifiedShow Answer

If the number of sellers in a market increases, then the

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The law of supply states that, other things equal, an increase in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the law of demand, when price increases the quantity demanded of a good

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for butter?

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An early frost in the vineyards of Napa Valley would cause a(n)

Correct AnswerverifiedShow Answer

Equilibrium quantity must decrease when demand

Correct AnswerverifiedShow Answer

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The curren...
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The equilibrium pric...
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