Question 1

Sellers respond to a shortage by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 2

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 3

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.E) None of the above
F) B) and C)

Question 4

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

Accepted Answer

A)  4 units.
B)  7.5 units.
C)  10 units.
D)  30 units.E) None of the above
F) All of the above

Question 5

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.E) All of the above
F) A) and C)

Question 6

Which of the following would cause a movement along the supply curve for cupcakes?

Accepted Answer

A)  an improvement in technology for commercial mixers
B)  a decrease in the price of cupcakes
C)  an increase in the price of cake flour
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 7

Which of the following would increase in response to a increase in the price of ironing boards?

Accepted Answer

A)  the quantity of irons demanded at each possible price of irons
B)  the equilibrium quantity of irons
C)  the equilibrium price of irons
D)  None of the above is correct.E) None of the above
F) B) and C)

Question 8

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Accepted Answer

A) True 
 B)False

Question 9

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Accepted Answer

A)  Both the equilibrium price and quantity would increase.
B)  Both the equilibrium price and quantity would decrease.
C)  The equilibrium price would increase, and the equilibrium quantity would decrease.
D)  The equilibrium price would decrease, and the equilibrium quantity would increase.E) None of the above
F) A) and B)

Question 10

Table 4-1 
-Refer to Table 4-1. Which of the following illustrates the market demand curve?

Accepted Answer

A)   
B)   
C)   
D)   E) None of the above
F) B) and C)

Question 11

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Accepted Answer

A)  decrease in the demand for printers and a decrease in the quantity supplied of printers.
B)  decrease in the supply of printers and a decrease in the quantity demanded of printers.
C)  decrease in the equilibrium price of printers and an increase in the equilibrium quantity of printers.
D)  increase in the equilibrium price of printers and a decrease in the equilibrium quantity of printers.E) None of the above
F) All of the above

Question 12

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

Question 13

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 14

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

Question 15

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed. 
-Refer to Table 4-15. Assume these are the only four suppliers in this market and the function for market demand is QD=1000-100P, where QD is the quantity demanded and P is the price. If the price is $6 per case, is there a shortage or surplus, and how large is the shortage or surplus?

Accepted Answer

There is a...

Question 16

A shortage exists in a market if

Accepted Answer

A)  there is an excess supply of the good.
B)  quantity supplied exceeds quantity demanded.
C)  the current price is below its equilibrium price.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 17

Which of the following is not a characteristic of a perfectly competitive market?

Accepted Answer

A)  Different sellers sell identical products.
B)  There are many sellers.
C)  Sellers must accept the price the market determines.
D)  All of the above are characteristics of a perfectly competitive market.E) A) and D)
F) A) and B)

Question 18

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

Question 19

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 20

Table 4-4 
-Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

Accepted Answer

A)  4 units.
B)  6 units.
C)  8 units.
D)  10 units.E) None of the above
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

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

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

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Correct Answer
verified

Correct Answer
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There is a...
View Answer

Which of the following would increase in response to a increase in the price of ironing boards?

Correct Answer
verified

Sellers respond to a shortage by cutting their prices.

Correct Answer
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Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

Correct Answer
verified

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

Correct Answer
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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 Answer
verified

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

Correct Answer
verified

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Correct Answer
verified

Which of the following would cause a movement along the supply curve for cupcakes?

Correct Answer
verified

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct Answer
verified

Which of the following is not a characteristic of a perfectly competitive market?

Correct Answer
verified

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
verified
The price ...
View Answer

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Correct Answer
verified

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Correct Answer
verified

A shortage exists in a market if

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

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

If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is a...View AnswerShow Answer

Which of the following would increase in response to a increase in the price of ironing boards?

Correct AnswerverifiedShow Answer

Sellers respond to a shortage by cutting their prices.

Correct AnswerverifiedShow Answer

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Adam and Barb only. If the price rises by $2, the quantity demanded in the market falls by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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

Table 4-1 -Refer to Table 4-1. Which of the following illustrates the market demand curve?

Correct AnswerverifiedShow Answer

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Correct AnswerverifiedShow Answer

Which of the following would cause a movement along the supply curve for cupcakes?

Correct AnswerverifiedShow Answer

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a perfectly competitive market?

Correct AnswerverifiedShow Answer

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

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

Suppose buyers of computers and printers regard the two goods as complements. Then an increase in the price of computers will cause a(n)

Correct AnswerverifiedShow Answer

A shortage exists in a market if

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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There is a...
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The price ...
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