Question 1

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities.
 
-Refer to Figure 4-20.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 SB.
D)   SB to SA.E) None of the above
F) B) and C)

Question 2

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

Accepted Answer

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

Question 3

When quantity demanded decreases 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 flatter.E) A) and D)
F) A) and B)

Question 4

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for bread of an increase in the price of flour?

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 B)
F) C) and D)

Question 5

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

Question 6

An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

Accepted Answer

A) True 
 B)False

Question 7

Figure 4-8
 
-Refer to Figure 4-8.The movement from Point A to Point B represents a(n)

Accepted Answer

A)   shift in the supply curve.
B)   decrease in the quantity supplied.
C)   increase in the quantity supplied.
D)   Both a)  and b)  are correct.E) A) and C)
F) B) and C)

Question 8

Figure 4-20
The graph below pertains to the supply of paper to colleges and universities.
 
-Refer to Figure 4-20.All else equal,a major paper manufacturer filing for bankruptcy and shutting down as a result of an IRS tax evasion investigation would cause a move from

Accepted Answer

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

Question 9

Table 4-1
 
-Refer to Table 4-1.Which of the following illustrates the market demand curve?

Accepted Answer

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

Question 10

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

Question 11

In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

Accepted Answer

A) True 
 B)False

Question 12

Buyers and sellers who have no influence on market price are referred to as

Accepted Answer

A)   market pawns.
B)   monopolists.
C)   price takers.
D)   price setters.E) A) and D)
F) None of the above

Question 13

A market's equilibrium is the point at which the supply and demand curves intersect.

Accepted Answer

A) True 
 B)False

Question 14

An increase in the price of pizza will shift the demand curve for pizza to the left.

Accepted Answer

A) True 
 B)False

Question 15

Table 4-4
 
-Refer to Table 4-4.If these are the only four sellers in the market,then when the price decreases from $4 to $2,the market quantity supplied

Accepted Answer

A)   increases by 10 units.
B)   decreases by 10 units.
C)   decreases by 20 units.
D)   decreases by 30 units.E) B) and D)
F) A) and B)

Question 16

Two goods are complements when a decrease in the price of one good

Accepted Answer

A)   decreases the quantity demanded of the other good.
B)   decreases the demand for the other good.
C)   increases the quantity demanded of the other good.
D)   increases the demand for the other good.E) All of the above
F) C) and D)

Question 17

Figure 4-10
 
-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?

Accepted Answer

A)   a decrease in the price of disposable ballpoint pens
B)   an increase in the price of fountain pens
C)   an increase in the price of ink
D)   an improvement in technology that allows firms to use less labor in the production of disposable ballpoint pensE) B) and C)
F) A) and D)

Question 18

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 steamed milk,which is used to make lattés,and scientists discovered that coffee prevents heart attacks?

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 effect on equilibrium quantity would be ambiguous.
D)   The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous.E) None of the above
F) B) and C)

Question 19

Holding the nonprice determinants of demand constant,a change in price would

Accepted Answer

A)   result in either a decrease in demand or an increase in demand.
B)   result in a movement along a stationary demand curve.
C)   result in a shift of supply.
D)   have no effect on the quantity demanded.E) B) and D)
F) B) and C)

Question 20

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

Accepted Answer

A)   production technology.
B)   input prices.
C)   expectations about future prices.
D)   the price of the good or service that is being supplied.E) B) and C)
F) C) and D)

Exam 4: The Market Forces of Supply and Demand.

An increase in the price of pizza will shift the demand curve for pizza to the left.

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A market's equilibrium is the point at which the supply and demand curves intersect.

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

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Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.All else equal,a major paper manufacturer filing for bankruptcy and shutting down as a result of an IRS tax evasion investigation would cause a move from

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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 steamed milk,which is used to make lattés,and scientists discovered that coffee prevents heart attacks?

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

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Two goods are complements when a decrease in the price of one good

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

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Table 4-4 -Refer to Table 4-4.If these are the only four sellers in the market,then when the price decreases from $4 to $2,the market quantity supplied

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In a market,the price of any good adjusts until quantity demanded equals quantity supplied.

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Figure 4-10 -Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?

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Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for bread of an increase in the price of flour?

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Table 4-1 -Refer to Table 4-1.Which of the following illustrates the market demand curve?

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When we move along a given demand curve,

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Holding the nonprice determinants of demand constant,a change in price would

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Figure 4-8 -Refer to Figure 4-8.The movement from Point A to Point B represents a(n)

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An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts.

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Figure 4-20 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-20.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

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

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Buyers and sellers who have no influence on market price are referred to as

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