Question 1

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

Question 2

Assume Leo buys coffee beans in a competitive market. It follows that

Accepted Answer

A)  Leo has a limited number of sellers from which to buy coffee beans.
B)  Leo will negotiate with sellers whenever he buys coffee beans.
C)  Leo can influence the price of coffee beans if he buys a large quantity of them.
D)  None of the above is correct.E) A) and C)
F) B) and D)

Question 3

When supply and demand both increase, equilibrium

Accepted Answer

A)  price will increase.
B)  price will decrease.
C)  quantity may increase, decrease, or remain unchanged.
D)  price may increase, decrease, or remain unchanged.E) None of the above
F) B) and D)

Question 4

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n)

Accepted Answer

A)  substitute good.
B)  normal good.
C)  inferior good.
D)  complementary good.E) B) and D)
F) B) and C)

Question 5

Figure 4-27
Panel (a) 
Panel (b)    Panel (c) 
Panel (d)   
-Refer to Figure 4-27. Panel (d)  shows which of the following?

Accepted Answer

A)  a decrease in demand and a decrease in quantity supplied
B)  a decrease in demand and a decrease in supply
C)  a decrease in quantity demanded and a decrease in quantity supplied
D)  a decrease in quantity demanded and a decrease in supplyE) A) and D)
F) C) and D)

Question 6

Table 4-13
The demand schedule below pertains to sandwiches demanded per week. 
-Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose the following:
• x = 2.
• The current price of a sandwich is $3.00.
• The market quantity supplied of sandwiches is 5.
• The slope of the supply curve is 1.
Then there is currently a

Accepted Answer

A)  shortage of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
B)  shortage of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.
C)  surplus of 5 sandwiches, and the equilibrium price of a sandwich is between $3.00 and $5.00.
D)  surplus of 5 sandwiches, and the equilibrium price of a sandwich is $5.00.E) A) and C)
F) B) and C)

Question 7

Figure 4-3
Consumer 1
Consumer 2  
-Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Accepted Answer

A)  12 units.
B)  14 units.
C)  19 units.
D)  21 units.E) B) and C)
F) All of the above

Question 8

To obtain the market demand curve for a product, sum the individual demand curves

Accepted Answer

A)  vertically.
B)  diagonally.
C)  horizontally.
D)  and then average them.E) A) and B)
F) None of the above

Question 9

Figure 4-27
Panel (a) 
Panel (b)    Panel (c) 
Panel (d)   
-Refer to Figure 4-27. Panel (c)  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) A) and D)
F) A) and C)

Question 10

Figure 4-7 
-Refer to Figure 4-7. The shift from Db to Da is called

Accepted Answer

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

Question 11

Figure 4-28
​ 
-Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if consumer incomes increase and this is an inferior good.

Accepted Answer

The answer of Figure 4-28
​ 
-Refer to Figure 4-28. Using...

Question 12

Equilibrium price must decrease when demand

Accepted Answer

A)  increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
B)  increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.
C)  decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
D)  decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.E) All of the above
F) A) and B)

Question 13

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

Question 14

Figure 4-22 
-Refer to Figure 4-22. At a price of $12, there is a

Accepted Answer

A)  surplus of 2 units.
B)  surplus of 4 units.
C)  shortage of 2 units.
D)  shortage of 4 units.E) A) and B)
F) All of the above

Question 15

Other things equal, when the price of a good falls, the

Accepted Answer

A)  quantity supplied of the good increases.
B)  supply decreases.
C)  quantity supplied of the good decreases.
D)  demand increases.E) B) and D)
F) A) and B)

Question 16

Figure 4-30
​ 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Accepted Answer

Supply shi...

Question 17

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

Question 18

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Accepted Answer

The supply...

Question 19

Table 4-15
The following table shows the number of cases of water each seller is willing to sell at the prices listed. 
-Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Accepted Answer

Question 20

The unique point at which the supply and demand curves intersect is called

Accepted Answer

A)  market harmony.
B)  coincidence.
C)  equivalence.
D)  equilibrium.E) A) and C)
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

Other things equal, when the price of a good falls, the

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

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if consumer incomes increase and this is an inferior good.

Correct Answer
verified

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n)

Correct Answer
verified

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (d) shows which of the following?

Correct Answer
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Equilibrium price must decrease when demand

Correct Answer
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The unique point at which the supply and demand curves intersect is called

Correct Answer
verified

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as Q^S=

Correct Answer
verified

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Correct Answer
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Correct Answer
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Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (c) shows which of the following?

Correct Answer
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Figure 4-22 -Refer to Figure 4-22. At a price of $12, there is a

Correct Answer
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When supply and demand both increase, equilibrium

Correct Answer
verified

To obtain the market demand curve for a product, sum the individual demand curves

Correct Answer
verified

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The shift from Db to Da is called

Correct Answer
verified

Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct Answer
verified
Supply shi...
View Answer

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

Correct Answer
verified

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Correct Answer
verified
The supply...
View Answer

Assume Leo buys coffee beans in a competitive market. It follows that

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Other things equal, when the price of a good falls, the

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

Figure 4-28 ​ -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if consumer incomes increase and this is an inferior good.

Correct AnswerverifiedShow Answer

Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new job in January. You have no plans to purchase frozen pizzas in January. For you, frozen pizzas are a(n)

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (d) shows which of the following?

Correct AnswerverifiedShow Answer

Equilibrium price must decrease when demand

Correct AnswerverifiedShow Answer

The unique point at which the supply and demand curves intersect is called

Correct AnswerverifiedShow Answer

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

Correct AnswerverifiedShow Answer

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (c) shows which of the following?

Correct AnswerverifiedShow Answer

Figure 4-22 -Refer to Figure 4-22. At a price of $12, there is a

Correct AnswerverifiedShow Answer

When supply and demand both increase, equilibrium

Correct AnswerverifiedShow Answer

To obtain the market demand curve for a product, sum the individual demand curves

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The shift from Db to Da is called

Correct AnswerverifiedShow Answer

Figure 4-30 ​ -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct AnswerverifiedSupply shi...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?

Correct AnswerverifiedThe supply...View AnswerShow Answer

Assume Leo buys coffee beans in a competitive market. It follows that

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if consumer incomes increase and this is an inferior good.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as Q^S=

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Figure 4-30 -Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Which curve(s) shift(s) and in which direction?

Correct Answer
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Supply shi...
View Answer

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Correct Answer
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The supply...
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