Question 1

Individual demand curves are summed horizontally to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 2

Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of

Accepted Answer

A)   price.
B)   supply.
C)   demand.
D)   income.E) A) and B)
F) C) and D)

Question 3

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. 
-Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Accepted Answer

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

Question 4

Assume a market is perfectly competitive. When a new producer enters the market, the

Accepted Answer

A)   price in the market increases.
B)   price in the market decreases.
C)   price in the market does not change.
D)   market is no longer a competitive market.E) A) and B)
F) A) and C)

Question 5

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. 
-Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Accepted Answer

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

Question 6

A group of buyers and sellers of a particular good or service is called a

Accepted Answer

The answer of A group of buyers and sellers of...

Question 7

Which of the following events could shift the demand curve for gasoline to the left?

Accepted Answer

A)   The income of gasoline buyers rises, and gasoline is a normal good.
B)   The income of gasoline buyers falls, and gasoline is an inferior good.
C)   Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars.
D)   The price of gasoline rises.E) None of the above
F) A) and B)

Question 8

An increase in the price of a good will

Accepted Answer

A)   increase demand.
B)   decrease demand.
C)   increase quantity demanded.
D)   decrease quantity demanded.E) A) and C)
F) A) and B)

Question 9

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Accepted Answer

A)   will increase but not until the end of the year.
B)   increases today.
C)   decreases as she looks for a substitute good.
D)   shifts left today.E) A) and B)
F) None of the above

Question 10

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) A) and B)
F) C) and D)

Question 11

The term price takers refers to buyers and sellers in

Accepted Answer

A)   perfectly competitive markets.
B)   monopolistic markets.
C)   markets that are regulated by the government.
D)   markets in which buyers cannot buy all they want and/or sellers cannot sell all they want.E) B) and C)
F) A) and D)

Question 12

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices.
 
-Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Accepted Answer

A)   The price of sugar decreases.
B)   All four family incomes increase, and Mt. Dew is a normal good.
C)   A major university study reveals that drinking Mt. Dew can cause diabetes.
D)   The technology for bottling carbonated beverages improves.E) B) and C)
F) B) and D)

Question 13

The quantity supplied of a good is the amount that

Accepted Answer

A)   buyers are willing and able to purchase.
B)   sellers are able to produce.
C)   buyers and sellers agree will be brought to market.
D)   sellers are willing and able to sell.E) C) and D)
F) B) and D)

Question 14

In a perfectly competitive market, buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 15

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. 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) B) and C)
F) A) and C)

Question 16

If the demand for a product increases, then we would expect equilibrium price

Accepted Answer

A)   to increase and equilibrium quantity to decrease.
B)   to decrease and equilibrium quantity to increase.
C)   and equilibrium quantity both to increase.
D)   and equilibrium quantity both to decrease.E) None of the above
F) A) and D)

Question 17

Figure 4-17 
-Refer to Figure 4-17. At a price of

Accepted Answer

A)   $2, there is a surplus of 6 units.
B)   $5, there is a surplus of 25 units.
C)   $5, there is a shortage of $25.
D)   $7, there is a surplus of 4 units.E) C) and D)
F) A) and B)

Question 18

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) A) and D)

Question 19

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)   B only
B)   B and D only
C)   A and C only
D)   D onlyE) A) and C)
F) A) and D)

Question 20

Given the table below, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity.
  a. What is the equilibrium price and the equilibrium quantity?
b. Suppose the price is currently $5. What problem would exist in the market? What would you expect to happen to price? Show this on your graph.
c. Suppose the price is currently $2. What problem would exist in the market? What would you expect to happen to price? Show this on your graph.

Accepted Answer

a. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b. The equilibrium price (Pe) is $4 ...

Exam 4: The Market Forces of Supply and Demand

Which of the following events could shift the demand curve for gasoline to the left?

Correct Answer
verified

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

Correct Answer
verified

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Correct Answer
verified

The term price takers refers to buyers and sellers in

Correct Answer
verified

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Correct Answer
verified

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

Correct Answer
verified

Individual demand curves are summed horizontally to obtain the market demand curve.

Correct Answer
verified

Correct Answer
verified

An increase in the price of a good will

Correct Answer
verified

The quantity supplied of a good is the amount that

Correct Answer
verified

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Correct Answer
verified

A group of buyers and sellers of a particular good or service is called a

Correct Answer
verified

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Correct Answer
verified

If the demand for a product increases, then we would expect equilibrium price

Correct Answer
verified

In a perfectly competitive market, buyers and sellers are price setters.

Correct Answer
verified

Correct Answer
verified
a. b. The equilibrium price (Pe) is $4 ...
View Answer

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct Answer
verified

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct Answer
verified

Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of

Correct Answer
verified

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Which of the following events could shift the demand curve for gasoline to the left?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Correct AnswerverifiedShow Answer

The term price takers refers to buyers and sellers in

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, the return of college students to campus in the fall would cause a move from

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Individual demand curves are summed horizontally to obtain the market demand curve.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in the price of a good will

Correct AnswerverifiedShow Answer

The quantity supplied of a good is the amount that

Correct AnswerverifiedShow Answer

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Which of the following could cause all four families to demand more Mt. Dew at all prices?

Correct AnswerverifiedShow Answer

A group of buyers and sellers of a particular good or service is called a

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Correct AnswerverifiedShow Answer

If the demand for a product increases, then we would expect equilibrium price

Correct AnswerverifiedShow Answer

In a perfectly competitive market, buyers and sellers are price setters.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. b. The equilibrium price (Pe) is $4 ...View AnswerShow Answer

A university's football stadium is always sold out, and students who wait in line for hours may be turned away. This indicates

Correct AnswerverifiedShow Answer

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct AnswerverifiedShow Answer

Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17. At a price of

Correct AnswerverifiedShow Answer

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a. b. The equilibrium price (Pe) is $4 ...
View Answer

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