Question 1

Table 4-7
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-7.Regarding Charlie and Maxine,for whom are sandwiches a normal good?

Accepted Answer

A)   only for Charlie
B)   only for Maxine
C)   for Charlie and for Maxine
D)   This cannot be determined from the given information.E) A) and B)
F) None of the above

Question 2

When the price of a good is higher than the equilibrium price,

Accepted Answer

A)   a shortage will exist.
B)   buyers desire to purchase more than is produced.
C)   sellers desire to produce and sell more than buyers wish to purchase.
D)   quantity demanded exceeds quantity supplied.E) None of the above
F) A) and B)

Question 3

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

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) None of the above
F) All of the above

Question 4

Supply and demand together determine the price and quantity of a good sold in a market.

Accepted Answer

A) True 
 B)False

Question 5

A likely example of substitute goods for most people would be

Accepted Answer

A)   peanut butter and jelly.
B)   tennis balls and tennis rackets.
C)   televisions and subscriptions to cable television services.
D)   pencils and pens.E) A) and D)
F) A) and C)

Question 6

Which of the following sets of events would most likely cause an increase in the price of a new house?

Accepted Answer

A)   higher wages for carpenters,higher wood prices,increases in consumer incomes,higher apartment rents,increases in population,and expectations of higher house prices in the future
B)   lower wages for carpenters,lower wood prices,increases in consumer incomes,higher apartment rents,increases in population and expectations of higher house prices in the future
C)   lower wages for carpenters,higher wood prices,decreases in consumer incomes,higher apartment rents,decreases in population and expectations of higher house prices in the future
D)   higher wages for carpenters,lower wood prices,decreases in consumer incomes,lower apartment rents,decreases in population and expectations of lower house prices in the futureE) All of the above
F) B) and C)

Question 7

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) All of the above
F) None of the above

Question 8

A movement along the demand curve might be caused by a change in

Accepted Answer

A)   income.
B)   the prices of substitutes or complements.
C)   expectations about future prices.
D)   the price of the good or service that is being demanded.E) A) and D)
F) A) and C)

Question 9

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good rises,and when the price falls,the quantity demanded falls.

Accepted Answer

A) True 
 B)False

Question 10

What will happen in the rice market now if sellers expect higher rice prices in the near future?

Accepted Answer

A)   The supply of rice will increase.
B)   The supply of rice will decrease.
C)   The supply of rice will be unaffected.
D)   The demand for rice will decrease.E) C) and D)
F) B) and D)

Question 11

Figure 4-13
The diagram below pertains to the supply of paper in university markets. A to SB. D)  from SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-13.All else equal,the return of college students to campus in the fall would cause a move

Accepted Answer

A)   from x to y.
B)   from y to x.
C)   from SA to SB.
D)   from SB to SA.E) B) and C)
F) None of the above

Question 12

Figure 4-3 
-Refer to Figure 4-3.If the demand curve shifts from D to D',then

Accepted Answer

A)   firms would be willing to supply less of the good than before at each possible price.
B)   people are willing to buy less of the good than before at each possible price.
C)   people's incomes evidently have decreased.
D)   the price of the product has increased,causing consumers to buy less of the product.E) None of the above
F) C) and D)

Question 13

All market participants are price takers that have no influence over prices in markets that feature

Accepted Answer

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

Question 14

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

Accepted Answer

A)   the demand curve becomes steeper.
B)   the demand curve becomes flatter.
C)   the demand curve shifts.
D)   we move along the demand curve.E) B) and D)
F) B) and C)

Question 15

The equilibrium price is the same as the market-clearing price.

Accepted Answer

A) True 
 B)False

Question 16

When quantity supplied increases at every possible price,we know that the supply curve has

Accepted Answer

A)   shifted to the left.
B)   shifted to the right.
C)   not shifted;rather,we have moved along the supply curve to a new point on the same curve.
D)   not shifted;rather,the supply curve has become flatter.E) All of the above
F) B) and C)

Question 17

The law of supply states that,other things equal,

Accepted Answer

A)   when the price of a good falls,the supply of the good rises.
B)   when the price of a good rises,the quantity supplied of the good rises.
C)   when the price of a good rises,the supply of the good falls.
D)   when the price of a good falls,the quantity supplied of the good rises.E) B) and C)
F) A) and D)

Question 18

A market supply curve is determined by

Accepted Answer

A)   vertically summing individual supply curves.
B)   horizontally summing individual supply curves.
C)   finding the average quantity supplied by sellers at each possible price.
D)   finding the average price at which sellers are willing and able to sell a particular quantity of the good.E) None of the above
F) A) and C)

Question 19

Table 4-6
A country club usually only allows members to purchase tickets for its celebrity golf tournament,but the club is considering allowing non-members to purchase tickets this year.The demand and supply schedules are as follows:
 
-Refer to Table 4-6.If only members are allowed to purchase tickets to this year's celebrity golf tournament,then what will be the equilibrium price?

Accepted Answer

A)   $10
B)   $15
C)   $20
D)   $25E) A) and B)
F) None of the above

Question 20

A university's football stadium is never more than half-full during football games.This indicates

Accepted Answer

A)   the ticket price is above the equilibrium price.
B)   the ticket price is below the equilibrium price.
C)   the ticket price is at the equilibrium price.
D)   nothing about the equilibrium price.E) None of the above
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

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

Correct Answer
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A likely example of substitute goods for most people would be

Correct Answer
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All market participants are price takers that have no influence over prices in markets that feature

Correct Answer
verified

The law of supply states that,other things equal,

Correct Answer
verified

Correct Answer
verified

The equilibrium price is the same as the market-clearing price.

Correct Answer
verified

Figure 4-3 -Refer to Figure 4-3.If the demand curve shifts from D to D',then

Correct Answer
verified

Table 4-7 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-7.Regarding Charlie and Maxine,for whom are sandwiches a normal good?

Correct Answer
verified

A university's football stadium is never more than half-full during football games.This indicates

Correct Answer
verified

What will happen in the rice market now if sellers expect higher rice prices in the near future?

Correct Answer
verified

A market supply curve is determined by

Correct Answer
verified

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

Correct Answer
verified

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good rises,and when the price falls,the quantity demanded falls.

Correct Answer
verified

Figure 4-13 The diagram below pertains to the supply of paper in university markets. -Refer to Figure 4-13.All else equal,the return of college students to campus in the fall would cause a move

Correct Answer
verified

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

Correct Answer
verified

When the price of a good is higher than the equilibrium price,

Correct Answer
verified

Supply and demand together determine the price and quantity of a good sold in a market.

Correct Answer
verified

A movement along the demand curve might be caused by a change in

Correct Answer
verified

Which of the following sets of events would most likely cause an increase in the price of a new house?

Correct Answer
verified

When quantity supplied increases at every possible price,we know that the supply curve has

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

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

Correct AnswerverifiedShow Answer

A likely example of substitute goods for most people would be

Correct AnswerverifiedShow Answer

All market participants are price takers that have no influence over prices in markets that feature

Correct AnswerverifiedShow Answer

The law of supply states that,other things equal,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The equilibrium price is the same as the market-clearing price.

Correct AnswerverifiedShow Answer

Figure 4-3 -Refer to Figure 4-3.If the demand curve shifts from D to D',then

Correct AnswerverifiedShow Answer

Table 4-7 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-7.Regarding Charlie and Maxine,for whom are sandwiches a normal good?

Correct AnswerverifiedShow Answer

A university's football stadium is never more than half-full during football games.This indicates

Correct AnswerverifiedShow Answer

What will happen in the rice market now if sellers expect higher rice prices in the near future?

Correct AnswerverifiedShow Answer

A market supply curve is determined by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good rises,and when the price falls,the quantity demanded falls.

Correct AnswerverifiedShow Answer

Figure 4-13 The diagram below pertains to the supply of paper in university markets. -Refer to Figure 4-13.All else equal,the return of college students to campus in the fall would cause a move

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

Correct AnswerverifiedShow Answer

When the price of a good is higher than the equilibrium price,

Correct AnswerverifiedShow Answer

Supply and demand together determine the price and quantity of a good sold in a market.

Correct AnswerverifiedShow Answer

A movement along the demand curve might be caused by a change in

Correct AnswerverifiedShow Answer

Which of the following sets of events would most likely cause an increase in the price of a new house?

Correct AnswerverifiedShow Answer

When quantity supplied increases at every possible price,we know that the supply curve has

Correct AnswerverifiedShow Answer

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