Question 1

Which of the following events must cause equilibrium price to rise?

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 increaseE) None of the above
F) A) and D)

Question 2

An increase in supply is represented by a

Accepted Answer

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

Question 3

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.E) B) and C)
F) C) and D)

Question 4

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 5

Table 4-4
 
-Refer to Table 4-4.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) A) and B)

Question 6

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

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 DE) None of the above
F) A) and B)

Question 7

If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Accepted Answer

A) True 
 B)False

Question 8

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

Accepted Answer

A)   demand for flour to increase.
B)   demand for flour to decrease.
C)   supply of flour to increase.
D)   supply of flour to decrease.E) A) and D)
F) A) and C)

Question 9

The supply of a good or service is determined by

Accepted Answer

A)   those who buy the good or service.
B)   the government.
C)   those who sell the good or service.
D)   both those who buy and those who sell the good or service.E) None of the above
F) All of the above

Question 10

Figure 4-19
The diagram below pertains to the demand for turkey in the United States. A to DB. B)  DB to DA. C)  x to y. D)  y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-19.All else equal,an increase in the productivity of turkey farmers would cause a move from

Accepted Answer

A)   DA to DB.
B)   DB to DA.
C)   x to y.
D)   y to x.E) B) and D)
F) B) and C)

Question 11

The dictionary defines equilibrium as a situation in which forces

Accepted Answer

A)   are in balance.
B)   are the same.
C)   clash.
D)   remain constant.E) A) and D)
F) A) and C)

Question 12

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities. A to SB. D)  SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-20.All else equal,an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

A)   x to y.
B)   y to x.
C)   SA to SB.
D)   SB to SA.E) C) and D)
F) A) and B)

Question 13

Which of the following is not a determinant of the demand for a particular good?

Accepted Answer

A)   the prices of related goods
B)   income
C)   tastes
D)   the prices of the inputs used to produce the goodE) A) and D)
F) B) and D)

Question 14

Which of the following changes would not shift the supply curve for a good or service?

Accepted Answer

A)   a change in production technology
B)   a change in the price of the good or service
C)   a change in expectations about the future price of the good or service
D)   a change in input pricesE) C) and D)
F) A) and C)

Question 15

The demand for a good or service is determined by

Accepted Answer

A)   those who buy the good or service.
B)   the government.
C)   those who sell the good or service.
D)   both those who buy and those who sell the good or service.E) B) and C)
F) A) and D)

Question 16

A market includes

Accepted Answer

A)   buyers only.
B)   sellers only.
C)   both buyers and sellers.
D)   the place where transactions occur but not the people involved.E) B) and D)
F) C) and D)

Question 17

If Max experiences a decrease in his income,then we would expect Max's demand for

Accepted Answer

A)   each good he purchases to remain unchanged.
B)   normal goods to decrease.
C)   luxury goods to increase.
D)   inferior goods to decrease.E) A) and D)
F) All of the above

Question 18

When drawing a demand curve,

Accepted Answer

A)   demand is measured along the vertical axis,and price is measured along the horizontal axis.
B)   quantity demanded is measured along the vertical axis,and price is measured along the horizontal axis.
C)   price is measured along the vertical axis,and demand is measured along the horizontal axis.
D)   price is measured along the vertical axis,and quantity demanded is measured along the horizontal axis.E) A) and D)
F) None of the above

Question 19

Figure 4-15 
-Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

Accepted Answer

A)   $15 and 200 units.
B)   $25 and 600 units.
C)   $25 and 400 units.
D)   $35 and 200 units.E) C) and D)
F) All of the above

Question 20

During the last few decades in the United States,health officials have argued that eating too much beef might be harmful to human health.As a result,there has been a significant decrease in the amount of beef produced.Which of the following best explains the decrease in production?

Accepted Answer

A)   Beef producers,concerned about the health of their customers,decided to produce relatively less beef.
B)   Government officials,concerned about consumer health,ordered beef producers to produce relatively less beef.
C)   Individual consumers,concerned about their own health,decreased their demand for beef,which lowered the equilibrium price of beef,making it less attractive to produce.
D)   Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.E) A) and B)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

The supply of a good or service is determined by

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Figure 4-19 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-19.All else equal,an increase in the productivity of turkey farmers would cause a move from

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The demand for a good or service is determined by

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

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Figure 4-15 -Refer to Figure 4-15.Equilibrium price and quantity are,respectively,

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Which of the following is not a determinant of the demand for a particular good?

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Which of the following events must cause equilibrium price to rise?

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An increase in supply is represented by a

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If Max experiences a decrease in his income,then we would expect Max's demand for

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Which of the following changes would not shift the supply curve for a good or service?

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During the last few decades in the United States,health officials have argued that eating too much beef might be harmful to human health.As a result,there has been a significant decrease in the amount of beef produced.Which of the following best explains the decrease in production?

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The dictionary defines equilibrium as a situation in which forces

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A market includes

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When drawing a demand curve,

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

Correct AnswerverifiedShow Answer

Wheat is the main input in the production of flour.If the price of wheat decreases,then we would expect the

Correct AnswerverifiedShow Answer

Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,an increase in the price of the pulp used in the paper production process would cause a move from

Correct AnswerverifiedShow Answer

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Correct AnswerverifiedShow Answer

If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

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