Question 1

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 2

Once the demand curve for a product or service is drawn, it

Accepted Answer

A)  remains stable over time.
B)  can shift either rightward or leftward.
C)  is possible to move along the curve, but the curve will not shift.
D)  tends to become steeper over time.E) B) and C)
F) A) and B)

Question 3

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

Question 4

A decrease in input costs to firms in a market will result in a(n)

Accepted Answer

A)  decrease in equilibrium price and an increase in equilibrium quantity.
B)  decrease in equilibrium price and a decrease in equilibrium quantity.
C)  increase in equilibrium price and a decrease in equilibrium quantity.
D)  increase in equilibrium price and an increase in equilibrium quantity.E) C) and D)
F) None of the above

Question 5

A rightward shift of a demand curve is called a(n)

Accepted Answer

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

Question 6

Each of the following is a determinant of demand except

Accepted Answer

A)  tastes.
B)  production technology.
C)  expectations.
D)  the prices of related goods.E) B) and C)
F) C) and D)

Question 7

A decrease in quantity supplied

Accepted Answer

A)  results in a movement downward and to the left along a fixed supply curve.
B)  results in a movement upward and to the right along a fixed supply curve.
C)  shifts the supply curve to the left.
D)  shifts the supply curve to the right.E) B) and C)
F) A) and D)

Question 8

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

Accepted Answer

A)  an increase in demand and an increase in quantity supplied
B)  an increase in demand and an increase in supply
C)  an increase in quantity demanded and an increase in quantity supplied
D)  an increase in quantity demanded and an increase in supplyE) B) and C)
F) None of the above

Question 9

Figure 4-5  
-Refer to Figure 4-5. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. If the warning labels are successful, we could illustrate the plan as producing a movement from

Accepted Answer

A)  Point A to Point B in Panel 1.
B)  Point B to Point A in Panel 1.
C)  Point A to Point C in Panel 2.
D)  Point C to Point A in Panel 2.E) A) and B)
F) None of the above

Question 10

There is no shortage of scarce resources in a market economy because

Accepted Answer

A)  the government makes shortages illegal.
B)  resources are abundant in market economies.
C)  prices adjust to eliminate shortages.
D)  quantity supplied is always greater than quantity demanded in market economies.E) B) and C)
F) A) and D)

Question 11

If a shortage exists in a market, then we know that the actual price is

Accepted Answer

A)  above the equilibrium price, and quantity supplied is greater than quantity demanded.
B)  above the equilibrium price, and quantity demanded is greater than quantity supplied.
C)  below the equilibrium price, and quantity demanded is greater than quantity supplied.
D)  below the equilibrium price, and quantity supplied is greater than quantity demanded.E) C) and D)
F) B) and C)

Question 12

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would not shift the supply curve for mp3 players?

Accepted Answer

A)  an increase in the price of mp3 players
B)  a decrease in the number of sellers of mp3 players
C)  an increase in the price of plastic, an input into the production of mp3 players
D)  an improvement in the technology used to produce mp3 playersE) C) and D)
F) All of the above

Question 14

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 15

Price will rise to eliminate a shortage.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Accepted Answer

A)  production technology
B)  expectations
C)  input prices
D)  the number of sellersE) All of the above
F) B) and D)

Question 17

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce them?

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

Question 18

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Accepted Answer

A)  a smaller quantity of labor to be used.
B)  the supply of cars to increase.
C)  the firms' costs to fall.
D)  individual car manufacturers to move up and to the right along their individual supply curves.E) C) and D)
F) A) and B)

Question 19

Table 4-5
   Price  Firm A’s  Quantity  Supplied  Firm B’s  Quantity  Supplied  Firm C’s  Quantity  Supplied  Firm D’s  Quantity  Supplied $10000$23421$46842$691263$8121684$101520105\begin{array} { | c | c | c | c | c | } \hline 	ext { Price } & \begin{array} { c } 	ext { Firm A&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm B&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm C&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} & \begin{array} { c } 	ext { Firm D&#x27;s } \	ext { Quantity } \	ext { Supplied }\end{array} \\hline \$ 1 &0 & 0 &0 & 0 \\hline \$ 2 & 3 & 4 & 2 & 1 \\hline \$ 4 & 6 & 8 & 4 & 2 \\hline \$ 6 & 9 & 12 & 6 & 3 \\hline \$ 8 & 12 & 16 & 8 & 4 \\hline \$ 10 & 15 & 20 & 10 & 5 \\hline\end{array} Price $1$2$4$6$8$10​ Firm A’s  Quantity  Supplied ​03691215​ Firm B’s  Quantity  Supplied ​048121620​ Firm C’s  Quantity  Supplied ​0246810​ Firm D’s  Quantity  Supplied ​012345​​ 
-Refer to Table 4-5. 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)  5 units.
C)  20 units.
D)  80 units. E) B) and C)
F) C) and D)

Question 20

Figure 4-22
 
-Refer to Figure 4-22. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Accepted Answer

A)  Panel (a) 
B)  Panel (b) 
C)  Panel (c) 
D)  Panel (d) E) A) and C)
F) A) and B)

Exam 4: The Market Forces of Supply and Demand

A rightward shift of a demand curve is called a(n)

Correct Answer
verified

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce them?

Correct Answer
verified

Figure 4-22 -Refer to Figure 4-22. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Once the demand curve for a product or service is drawn, it

Correct Answer
verified

The dictionary defines equilibrium as a situation in which forces

Correct Answer
verified

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Correct Answer
verified

A decrease in input costs to firms in a market will result in a(n)

Correct Answer
verified

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Correct Answer
verified

Each of the following is a determinant of demand except

Correct Answer
verified

Price will rise to eliminate a shortage.

Correct Answer
verified

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Correct Answer
verified

A decrease in quantity supplied

Correct Answer
verified

Which of the following would not shift the supply curve for mp3 players?

Correct Answer
verified

If a shortage exists in a market, then we know that the actual price is

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

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

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

Correct Answer
verified

There is no shortage of scarce resources in a market economy because

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

A rightward shift of a demand curve is called a(n)

Correct AnswerverifiedShow Answer

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce them?

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Once the demand curve for a product or service is drawn, it

Correct AnswerverifiedShow Answer

The dictionary defines equilibrium as a situation in which forces

Correct AnswerverifiedShow Answer

Which of the following is a determinant of the market supply curve but not a determinant of an individual seller's supply?

Correct AnswerverifiedShow Answer

A decrease in input costs to firms in a market will result in a(n)

Correct AnswerverifiedShow Answer

If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect

Correct AnswerverifiedShow Answer

Each of the following is a determinant of demand except

Correct AnswerverifiedShow Answer

Price will rise to eliminate a shortage.

Correct AnswerverifiedShow Answer

A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Correct AnswerverifiedShow Answer

A decrease in quantity supplied

Correct AnswerverifiedShow Answer

Which of the following would not shift the supply curve for mp3 players?

Correct AnswerverifiedShow Answer

If a shortage exists in a market, then we know that the actual price is

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

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There is no shortage of scarce resources in a market economy because

Correct AnswerverifiedShow Answer

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