Question 1

A decrease in quantity demanded

Accepted Answer

A)  results in a movement downward and to the right along a demand curve.
B)  results in a movement upward and to the left along a demand curve.
C)  shifts the demand curve to the left.
D)  shifts the demand curve to the right.E) A) and B)
F) All of the above

Question 2

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Accepted Answer

A)  shift rightward.
B)  shift leftward.
C)  become flatter.
D)  remain unchanged.E) B) and C)
F) A) and D)

Question 3

Figure 4-4
Yasmine
Mercedes  
-Refer to Figure 4-4. If Yasmine and Mercedes are the only two consumers in the market, then the market quantity demanded at a price of $12 is

Accepted Answer

A)  3 units.
B)  6 units.
C)  9 units.
D)  12 units.E) C) and D)
F) B) and D)

Question 4

Table 4-5
The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. 
-Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

Accepted Answer

A)  market quantity demanded decreases by 10.
B)  market quantity demanded increases by 10.
C)  Adams family increases its quantity demanded by more than the Smith family.
D)  Jones family increases its quantity demanded by more than the Williams family.E) A) and D)
F) A) and C)

Question 5

Figure 4-31
Consider the market for 2-packs of light bulbs below.
​ 
-Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Accepted Answer

The answer of Figure 4-31
Consider the market for 2-packs of...

Question 6

Table 4-8 
-Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Accepted Answer

A)  6 units.
B)  12 units.
C)  18 units.
D)  24 units.E) B) and D)
F) C) and D)

Question 7

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Accepted Answer

A)  will increase but not until the end of the year.
B)  increases today.
C)  decreases as she looks for a substitute good.
D)  shifts left today.E) All of the above
F) B) and C)

Question 8

A movement upward and to the left along 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 C)

Question 9

Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?

Accepted Answer

A movement...

Question 10

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

Accepted Answer

A)  each good she purchases to remain unchanged.
B)  normal goods to decrease.
C)  substitute goods to increase.
D)  inferior goods to decrease.E) A) and D)
F) B) and D)

Question 11

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) None of the above

Question 12

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Accepted Answer

A)  Beef producers, concerned about the health of their customers, decided to produce relatively less beef.
B)  Government officials, concerned about consumer health, ordered beef producers to produce relatively less beef.
C)  Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce.
D)  Anti-beef protesters have made it difficult for both buyers and sellers of beef to meet in the marketplace.E) None of the above
F) C) and D)

Question 13

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Accepted Answer

A)  Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
B)  Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
C)  Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
D)  None of the above is correct.E) A) and C)
F) A) and B)

Question 14

If a surplus 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) A) and D)
F) B) and C)

Question 15

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

Accepted Answer

A)  surplus of 15 units would exist, and price would tend to fall.
B)  shortage of 25 units would exist, and price would tend to rise.
C)  surplus of 25 units would exist, and price would tend to fall.
D)  shortage of 40 units would exist, and price would tend to rise.E) A) and C)
F) A) and D)

Question 16

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Accepted Answer

A) True 
 B)False

Question 17

If macaroni and cheese is an inferior good, then an increase in

Accepted Answer

A)  the price will cause the demand curve for macaroni and cheese to shift to the left.
B)  the price will cause the demand curve for macaroni and cheese to shift to the right.
C)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the left.
D)  a consumer's income will cause the demand curve for macaroni and cheese to shift to the right.E) B) and D)
F) B) and C)

Question 18

An increase in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 19

If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?

Accepted Answer

A)  a decrease in the price of Miracle Whip
B)  an increase in the price of mayonnaise
C)  a decrease in the price of mayonnaise
D)  Both a and b are correct.E) B) and C)
F) A) and D)

Question 20

Figure 4-30
​ 
-Refer to Figure 4-30. In this market for iPhones, the technology improves while all other factors remain constant. Explain the change(s) in the equilibrium price and quantity.

Accepted Answer

Equilibrium price de...

Exam 4: The Market Forces of Supply and Demand

If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?

Correct AnswerverifiedShow Answer

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

Correct AnswerverifiedShow Answer

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

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. Explain the change(s) in the equilibrium price and quantity.

Correct AnswerverifiedEquilibrium price de...View AnswerShow Answer

An increase in demand shifts the demand curve to the left.

Correct AnswerverifiedShow Answer

A movement upward and to the left along a demand curve is called a(n)

Correct AnswerverifiedShow Answer

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Correct AnswerverifiedShow Answer

Table 4-5 The table below shows the quantities demanded of cases of Mt. Dew per month by four families at various prices. -Refer to Table 4-5. Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the

Correct AnswerverifiedShow Answer

Figure 4-4 Yasmine Mercedes -Refer to Figure 4-4. If Yasmine and Mercedes are the only two consumers in the market, then the market quantity demanded at a price of $12 is

Correct AnswerverifiedShow Answer

Figure 4-31 Consider the market for 2-packs of light bulbs below. ​ -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Correct AnswerverifiedShow Answer

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A decrease in quantity demanded

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If macaroni and cheese is an inferior good, then an increase in

Correct AnswerverifiedShow Answer

Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?

Correct AnswerverifiedA movement...View AnswerShow Answer

Suppose the number of buyers in a market decreases and a technological advancement occurs also. What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result, there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 4-8 -Refer to Table 4-8. If these are the only three sellers in the market, then the market quantity supplied at a price of $6 is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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. Explain the change(s) in the equilibrium price and quantity.

Correct Answer
verified
Equilibrium price de...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. What are the values of the equilibrium price and quantity?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A movement...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified