Question 1

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

Question 2

Which of the following is not an expression for the sum of all the individual demand curves for a product?

Accepted Answer

A)  total demand
B)  market demand
C)  equilibrium demand
D)  aggregate demandE) None of the above
F) C) and D)

Question 3

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) None of the above
F) All of the above

Question 4

Figure 4-23 
-Refer to Figure 4-23. In this market for watermelons, a severe drought occurs which affects the watermelon crop. The equilibrium price

Accepted Answer

A)  increases and the equilibrium quantity decreases.
B)  decreases and the equilibrium quantity is ambiguous.
C)  and quantity both increase.
D)  and quantity both decrease.E) C) and D)
F) A) and B)

Question 5

When quantity demanded increases at every possible price, the demand curve has

Accepted Answer

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

Question 6

Figure 4-24
The diagram below pertains to the demand for turkey in the United States. A to DB. B) DB to DA. C) x to y. D) y to x." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Accepted Answer

A)  DA to DB.
B)  DB to DA.
C)  x to y.
D)  y to x.E) A) and B)
F) None of the above

Question 7

Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Accepted Answer

A)  decreases, and the supply of tires increases.
B)  is unaffected, and the supply of tires decreases.
C)  is unaffected, and the supply of tires increases.
D)  None of the above is necessarily correct.E) None of the above
F) B) and C)

Question 8

Which of the following sets of events must 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) A) and D)
F) A) and B)

Question 9

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

Accepted Answer

A)  coalition.
B)  economy.
C)  market.
D)  competition.E) A) and B)
F) A) and C)

Question 10

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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

Question 11

Figure 4-13  
-Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

Accepted Answer

A)  4 units.
B)  6 units.
C)  12 units.
D)  18 units.E) A) and C)
F) C) and D)

Question 12

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

Accepted Answer

A)  $2, there is a shortage 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 shortage of 4 units.E) All of the above
F) A) and C)

Question 13

In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

Accepted Answer

A) True 
 B)False

Question 14

A yard sale is an example of a market.

Accepted Answer

A) True 
 B)False

Question 15

When an increase in the price of one good lowers the demand for another good, the two goods are called complements.

Accepted Answer

A) True 
 B)False

Question 16

A decrease in income will shift the demand curve for an inferior good to the right.

Accepted Answer

A) True 
 B)False

Question 17

Figure 4-22 
-Refer to Figure 4-22. What is the equilibrium quantity in this market?

Accepted Answer

A)  4 units
B)  8 units
C)  12 units
D)  16 unitsE) None of the above
F) B) and C)

Question 18

Table 4-11 
-Refer to Table 4-11. If the price were $8, a

Accepted Answer

A)  shortage of 20 units would exist, and price would tend to rise.
B)  surplus of 25 units would exist, and price would tend to fall.
C)  shortage of 25 units would exist, and price would tend to rise.
D)  surplus of 45 units would exist, and price would tend to fall.E) A) and C)
F) B) and C)

Question 19

Today, producers changed their expectations about the future. This change

Accepted Answer

A)  can cause a movement along a supply curve.
B)  can affect future supply, but not today's supply.
C)  can affect today's supply.
D)  cannot affect either today's supply or future supply.E) A) and C)
F) A) and B)

Question 20

Figure 4-27
Panel (a) 
Panel (b)    Panel (c) 
Panel (d)   
-Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity demanded?

Accepted Answer

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

Exam 4: The Market Forces of Supply and Demand

When an increase in the price of one good lowers the demand for another good, the two goods are called complements.

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Today, producers changed their expectations about the future. This change

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In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller.

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

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Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

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

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Figure 4-22 -Refer to Figure 4-22. What is the equilibrium quantity in this market?

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

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Table 4-11 -Refer to Table 4-11. If the price were $8, a

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When quantity demanded increases at every possible price, the demand curve has

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Which of the following sets of events must cause an increase in the price of a new house?

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Which of the following is not an expression for the sum of all the individual demand curves for a product?

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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity demanded?

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A decrease in income will shift the demand curve for an inferior good to the right.

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Figure 4-23 -Refer to Figure 4-23. In this market for watermelons, a severe drought occurs which affects the watermelon crop. The equilibrium price

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Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

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Suppose an increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events, the demand for tires

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

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A yard sale is an example of a market.

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