Question 1

When the market price is above the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 2

For a competitive market,

Accepted Answer

A)   a seller can always increase her profit by raising the price of her product.
B)   if a seller charges more than the going price,buyers will go elsewhere to make their purchases.
C)   a seller often charges less than the going price to increase sales and profit.
D)   a single buyer can influence the price of the product but only when purchasing from several sellers in a short period of time.E) B) and C)
F) B) and D)

Question 3

Table 4-6
 
-Refer to Table 4-6.Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Accepted Answer

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

Question 4

If a higher price means a greater quantity supplied,then the supply curve slopes upward.

Accepted Answer

A) True 
 B)False

Question 5

The belief that tobacco is a "gateway drug" is consistent with

Accepted Answer

A)   the idea that tobacco and marijuana are substitutes.
B)   the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana.
C)   the idea that lower cigarette prices are associated with less use of marijuana.
D)   most of the available evidence.E) A) and C)
F) B) and C)

Question 6

In a market economy,

Accepted Answer

A)   supply determines demand and demand,in turn,determines prices.
B)   demand determines supply and supply,in turn,determines prices.
C)   the allocation of scarce resources determines prices and prices,in turn,determine supply and demand.
D)   supply and demand determine prices and prices,in turn,allocate the economy's scarce resources.E) A) and D)
F) A) and C)

Question 7

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Accepted Answer

A) True 
 B)False

Question 10

When the market price is below the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Accepted Answer

A) True 
 B)False

Question 11

Figure 4-21 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

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

Question 12

When we move along a given demand curve,

Accepted Answer

A)   only price is held constant.
B)   income and price are held constant.
C)   all nonprice determinants of demand are held constant.
D)   all determinants of quantity demanded are held constant.E) All of the above
F) C) and D)

Question 13

An improvement in production technology will

Accepted Answer

A)   increase a firm's costs and increase its supply.
B)   increase a firm's costs and decrease its supply.
C)   decrease a firm's costs and increase its supply.
D)   decrease a firm's costs and decrease its supply.E) None of the above
F) B) and D)

Question 14

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

Accepted Answer

A)   decrease.
B)   increase.
C)   be unaffected.
D)   There is insufficient information given to answer the question.E) None of the above
F) C) and D)

Question 15

When quantity supplied exceeds quantity demanded at the current market price,the market has a surplus,and market price will likely rise in the future to eliminate the surplus.

Accepted Answer

A) True 
 B)False

Question 16

Figure 4-17 
-Refer to Figure 4-17.At a price of $15,

Accepted Answer

A)   quantity demanded exceeds quantity supplied.
B)   there is a shortage.
C)   there is an excess demand.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 17

Table 4-8
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 4-8.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) All of the above
F) A) and C)

Question 18

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Accepted Answer

A) True 
 B)False

Question 19

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Accepted Answer

A) True 
 B)False

Question 20

If the number of sellers in a market increases,then the

Accepted Answer

A)   demand in that market will increase.
B)   supply in that market will increase.
C)   supply in that market will decrease.
D)   demand in that market will decrease.E) B) and C)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

When the market price is below the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Correct Answer
verified

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

Correct Answer
verified

Figure 4-17 -Refer to Figure 4-17.At a price of $15,

Correct Answer
verified

If a higher price means a greater quantity supplied,then the supply curve slopes upward.

Correct Answer
verified

When the market price is above the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Correct Answer
verified

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Correct Answer
verified

In a market economy,

Correct Answer
verified

When we move along a given demand curve,

Correct Answer
verified

When quantity supplied exceeds quantity demanded at the current market price,the market has a surplus,and market price will likely rise in the future to eliminate the surplus.

Correct Answer
verified

Correct Answer
verified

The belief that tobacco is a "gateway drug" is consistent with

Correct Answer
verified

If the number of sellers in a market increases,then the

Correct Answer
verified

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct Answer
verified

Table 4-6 -Refer to Table 4-6.Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Correct Answer
verified

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Correct Answer
verified

An improvement in production technology will

Correct Answer
verified

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

Correct Answer
verified

For a competitive market,

Correct Answer
verified

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

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

Exam 4: The Market Forces of Supply and Demand

When the market price is below the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Correct AnswerverifiedShow Answer

Suppose you like to make,from scratch,pies filled with banana cream and vanilla pudding.You notice that the price of bananas has increased.As a result,your demand for vanilla pudding would

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17.At a price of $15,

Correct AnswerverifiedShow Answer

If a higher price means a greater quantity supplied,then the supply curve slopes upward.

Correct AnswerverifiedShow Answer

When the market price is above the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

Correct AnswerverifiedShow Answer

A decrease in demand will cause a decrease in price,which will cause a decrease in supply.

Correct AnswerverifiedShow Answer

In a market economy,

Correct AnswerverifiedShow Answer

When we move along a given demand curve,

Correct AnswerverifiedShow Answer

When quantity supplied exceeds quantity demanded at the current market price,the market has a surplus,and market price will likely rise in the future to eliminate the surplus.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The belief that tobacco is a "gateway drug" is consistent with

Correct AnswerverifiedShow Answer

If the number of sellers in a market increases,then the

Correct AnswerverifiedShow Answer

A decrease in the price of sugar will shift the supply curve for cookies to the right.

Correct AnswerverifiedShow Answer

Table 4-6 -Refer to Table 4-6.Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity?

Correct AnswerverifiedShow Answer

A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee.

Correct AnswerverifiedShow Answer

An improvement in production technology will

Correct AnswerverifiedShow Answer

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

Correct AnswerverifiedShow Answer

For a competitive market,

Correct AnswerverifiedShow Answer

Cocoa and marshmallows are complements,so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

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

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