Question 1

Suppose Spencer and Kate are the only two demanders of lemonade.Each month,Spencer buys six glasses of lemonade when the price is $1.00 per glass,and he buys four glasses when the price is $1.50 per glass.Each month,Kate buys four glasses of lemonade when the price is $1.00 per glass,and she buys two glasses when the price is $1.50 per glass.Which of the following points is on the market demand curve?

Accepted Answer

A)   (quantity demanded = 2,price = $1.50) 
B)   (quantity demanded = 4,price = $2.50) 
C)   (quantity demanded = 10,price = $1.00) 
D)   (quantity demanded = 16,price = $2.50) E) A) and D)
F) A) and C)

Question 2

Which of the following would increase in response to a decrease 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)   All of the above are correct.E) C) and D)
F) B) and D)

Question 3

When all market participants are price takers who have no influence over prices,the markets have

Accepted Answer

A)   only a few buyers and sellers.
B)   numerous sellers but only a few buyers.
C)   numerous buyers but only a few sellers.
D)   numerous buyers and sellers.E) A) and D)
F) All of the above

Question 4

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-4 
-Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Accepted Answer

A)   an increase in the price of DVDs
B)   a decrease in the price of DVD players
C)   a change in consumer preferences toward watching movies in movie theaters rather than at home
D)   an expectation by buyers that their incomes will increase in the very near futureE) None of the above
F) A) and B)

Question 6

Figure 4-22
 
-Refer to Figure 4-22.Panel (b) shows which of the following?

Accepted Answer

A)   a decrease in demand and a decrease in quantity supplied
B)   a decrease in demand and a decrease in supply
C)   a decrease in quantity demanded and a decrease in quantity supplied
D)   a decrease in quantity demanded and a decrease in supplyE) A) and B)
F) All of the above

Question 7

If suppliers expect the price of their product to fall in the future,then they will

Accepted Answer

A)   decrease supply now.
B)   increase supply now.
C)   decrease supply in the future but not now.
D)   increase supply in the future but not now.E) A) and B)
F) A) and D)

Question 8

If something happens to alter the quantity supplied at any given price,then

Accepted Answer

A)   we move along the supply curve.
B)   the supply curve shifts.
C)   the supply curve becomes steeper.
D)   the supply curve becomes flatter.E) All of the above
F) A) and D)

Question 9

Figure 4-15 
-Refer to Figure 4-15.At what price would there be an excess supply of 200 units of the good?

Accepted Answer

A)   $15
B)   $20
C)   $30
D)   $35E) A) and D)
F) A) and B)

Question 10

The demand curve for textbooks shifts

Accepted Answer

A)   only when income changes.
B)   when a determinant of the demand for textbooks other than the price of textbooks changes.
C)   when the price of textbooks changes.
D)   Both b) and c) are correct.E) C) and D)
F) B) and C)

Question 11

What will happen to the equilibrium price of new textbooks if more students attend college,paper becomes cheaper,textbook authors accept lower royalties,and fewer used textbooks are sold?

Accepted Answer

A)   Price will rise.
B)   Price will fall.
C)   Price will stay exactly the same.
D)   The price change will be ambiguous.E) B) and D)
F) A) and D)

Question 12

Figure 4-15 
-Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Accepted Answer

A)   $15
B)   $20
C)   $30
D)   $35E) None of the above
F) A) and C)

Question 13

A market supply curve shows

Accepted Answer

A)   the total quantity supplied at all possible prices.
B)   the average quantity supplied by producers at all possible prices.
C)   how quantity supplied changes when consumer income changes.
D)   suppliers' responses,in terms of the amounts they will supply,to the demands of buyers.E) A) and B)
F) C) and D)

Question 14

Table 4-9
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-9.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) B) and D)
F) B) and C)

Question 15

In a market economy,supply and demand determine both the quantity of each good produced and the price at which it is sold.

Accepted Answer

A) True 
 B)False

Question 16

If buyers and sellers in a certain market are price takers,then individually

Accepted Answer

A)   they have no influence on market price.
B)   they have some influence on market price but that influence is limited.
C)   buyers will be able to find prices lower than those determined in the market.
D)   sellers will find it difficult to sell all they want to sell at the market price.E) A) and B)
F) C) and D)

Question 17

Sellers respond to a surplus by cutting their prices.

Accepted Answer

A) True 
 B)False

Question 18

Figure 4-18 
-Refer to Figure 4-18.At a price of $12,there is a

Accepted Answer

A)   surplus of 1 unit.
B)   surplus of 2 units.
C)   shortage of 1 unit.
D)   shortage of 2 units.E) C) and D)
F) B) and D)

Question 19

In a competitive market,the quantity of a product produced and the price of the product are determined by

Accepted Answer

A)   a single buyer.
B)   a single seller.
C)   one buyer and one seller working together.
D)   all buyers and all sellers.E) A) and B)
F) A) and C)

Question 20

Figure 4-13 
-Refer to Figure 4-13.The shift from S to S' is called a(n)

Accepted Answer

A)   decrease in supply.
B)   decrease in quantity supplied.
C)   increase in supply.
D)   increase in quantity supplied.E) B) and C)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

If suppliers expect the price of their product to fall in the future,then they will

Correct Answer
verified

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

Correct Answer
verified

The demand curve for textbooks shifts

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Correct Answer
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Figure 4-4 -Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Correct Answer
verified

If something happens to alter the quantity supplied at any given price,then

Correct Answer
verified

Figure 4-18 -Refer to Figure 4-18.At a price of $12,there is a

Correct Answer
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Correct Answer
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Figure 4-13 -Refer to Figure 4-13.The shift from S to S' is called a(n)

Correct Answer
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A market supply curve shows

Correct Answer
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Sellers respond to a surplus by cutting their prices.

Correct Answer
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Figure 4-22 -Refer to Figure 4-22.Panel (b) shows which of the following?

Correct Answer
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When all market participants are price takers who have no influence over prices,the markets have

Correct Answer
verified

What will happen to the equilibrium price of new textbooks if more students attend college,paper becomes cheaper,textbook authors accept lower royalties,and fewer used textbooks are sold?

Correct Answer
verified

Correct Answer
verified

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Correct Answer
verified

In a market economy,supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct Answer
verified

In a competitive market,the quantity of a product produced and the price of the product are determined by

Correct Answer
verified

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess supply of 200 units of the good?

Correct Answer
verified

If buyers and sellers in a certain market are price takers,then individually

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

If suppliers expect the price of their product to fall in the future,then they will

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The demand curve for textbooks shifts

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess demand of 200 units of the good?

Correct AnswerverifiedShow Answer

Figure 4-4 -Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Correct AnswerverifiedShow Answer

If something happens to alter the quantity supplied at any given price,then

Correct AnswerverifiedShow Answer

Figure 4-18 -Refer to Figure 4-18.At a price of $12,there is a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13.The shift from S to S' is called a(n)

Correct AnswerverifiedShow Answer

A market supply curve shows

Correct AnswerverifiedShow Answer

Sellers respond to a surplus by cutting their prices.

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22.Panel (b) shows which of the following?

Correct AnswerverifiedShow Answer

When all market participants are price takers who have no influence over prices,the markets have

Correct AnswerverifiedShow Answer

What will happen to the equilibrium price of new textbooks if more students attend college,paper becomes cheaper,textbook authors accept lower royalties,and fewer used textbooks are sold?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Correct AnswerverifiedShow Answer

In a market economy,supply and demand determine both the quantity of each good produced and the price at which it is sold.

Correct AnswerverifiedShow Answer

In a competitive market,the quantity of a product produced and the price of the product are determined by

Correct AnswerverifiedShow Answer

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess supply of 200 units of the good?

Correct AnswerverifiedShow Answer

If buyers and sellers in a certain market are price takers,then individually

Correct AnswerverifiedShow Answer

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