FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: The Market Forces of Supply and Demand

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Whenever a determinant of supply other than price changes, the supply curve shifts.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Essay

Review LaterAdd Note

Review Later

If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles?

Correct Answer

verified

The equilibrium quan...

View Answer

Show Answer

Question 3

True/False

Review LaterAdd Note

If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied.

Suppose the supply and demand of corn both increase. As a result, what will happen to the equilibrium price and equilibrium quantity in the market?

Figure 4-6 -Refer to Figure 4-6. The shift from S to S' in the market for muffins could be caused by

Which of the following events would cause the price of oranges to fall?

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

The market supply curve shows how the total quantity supplied of a good varies as input prices vary, holding constant all the other factors that influence producers' decisions about how much to sell.

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.

Suppose the United States had a short-term shortage of farmers. Which market mechanisms would adjust to remove the shortage?

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises?

Table 4-4 ​ ​ ​ ​ -Refer to Table 4-4. If these are the only four sellers in the market, then when the price increases from $4 to $6, the market quantity supplied

What would happen to the equilibrium price and quantity of smartphones if consumers' incomes rise and smartphones are a normal good?

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

Surpluses drive price up, while shortages drive price down.

A decrease in the price of pizza will shift the supply curve for pizza to the left.

Which of the following changes would not shift the supply curve for a good or service?

Figure 4-7 ​ -Refer to Figure 4-7. Equilibrium price and quantity are, respectively,

If a good or service has only one seller, then the seller is called a monopoly.

Table 4-1 ​ ​ $\begin{array} { | c | c | } \hline \begin{array} { c } \text { Price } \\\text { (Dollarsper unit) }\end{array} & \begin{array} { c } \text { Quantity Demanded } \\\text { (Units) }\end{array} \\\hline 16 & 80 \\\hline 21 & Q _ { 1 } \\\hline\end{array}$ -Refer to Table 4-1. If the law of demand applies to this good, then Q₁ could be