Question 1

Individual demand curves are summed vertically to obtain the market demand curve.

Accepted Answer

A) True 
 B)False

Question 2

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Accepted Answer

A) True 
 B)False

Question 3

Figure 4-25
The graph below pertains to the supply of paper to colleges and universities. A to SB. D) SB to SA." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 4-25. 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) A) and B)
F) All of the above

Question 4

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 $2 is

Accepted Answer

A)  4 units.
B)  6 units.
C)  8 units.
D)  10 units.E) B) and D)
F) All of the above

Question 5

For the general population, a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

A)  1 percent reduction in the quantity demanded of cigarettes.
B)  4 percent reduction in the quantity demanded of cigarettes.
C)  10 percent reduction in the quantity demanded of cigarettes.
D)  12 percent reduction in the quantity demanded of cigarettes.E) B) and D)
F) None of the above

Question 6

Figure 4-26 
-Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

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

Question 7

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Accepted Answer

A)  demand for bicycle assembly workers will increase.
B)  supply of bicycles will shift to the right.
C)  supply of bicycles will shift to the left.
D)  firm must increase output to maintain profit levels.E) A) and B)
F) A) and C)

Question 8

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

Question 9

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Accepted Answer

A) True 
 B)False

Question 10

Figure 4-7 
-Refer to Figure 4-7. The movement from Db to Da in the market for potato chips could be caused by a(n)

Accepted Answer

A)  decrease in the price of potato chips.
B)  decrease in income, assuming that potato chips are a normal good.
C)  announcement by the FDA that potato chips lower cholesterol.
D)  increase in the price of a pretzels.E) A) and C)
F) All of the above

Question 11

A rightward shift of a supply curve is called a(n)

Accepted Answer

A)  increase in supply.
B)  decrease in supply.
C)  decrease in quantity supplied.
D)  increase in quantity supplied.E) A) and D)
F) All of the above

Question 12

If the demand for a good falls when income falls, then the good is called an inferior good.

Accepted Answer

A) True 
 B)False

Question 13

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.  If the law of demand applies to these pizzas, then A could be

Accepted Answer

A)  0.
B)  15.
C)  25.
D)  30.E) A) and B)
F) All of the above

Question 14

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 4.
• The slope of the supply curve is 2.
Then there is currently a

Accepted Answer

A)  shortage of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00.
B)  shortage of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.
C)  surplus of 6 sandwiches, and the equilibrium price of a sandwich is less than $3.00.
D)  surplus of 6 sandwiches, and the equilibrium price of a sandwich is $5.00.E) A) and B)
F) B) and D)

Question 15

The market for diamond rings is closely linked to the market for high-quality diamonds. If a large quantity of high-quality diamonds enters the market, then the

Accepted Answer

A)  supply curve for diamond rings will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity.
B)  supply curve for diamond rings will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.
C)  demand curve for diamond rings will shift right, which will create a shortage at the current price. Price will increase, which will decrease quantity demanded and increase quantity supplied. The new market equilibrium will be at a higher price and higher quantity.
D)  demand curve for diamond rings will shift right, which will create a surplus at the current price. Price will decrease, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity.E) A) and D)
F) All of the above

Question 16

Figure 4-2  
-Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $10, then the market quantity demanded is

Accepted Answer

A)  0 units.
B)  2 units.
C)  4 units.
D)  6 units.E) B) and D)
F) A) and C)

Question 17

Scenario 4-1
Suppose the demand schedule in a market can be represented by the equation  , where  is the quantity demanded and  is the price. Also, suppose the supply schedule can be represented by the equation  , where  is the quantity supplied.
-Refer to Scenario 4-1. What is the equilibrium price in this market?

Accepted Answer

The answer of Scenario 4-1
Suppose the demand schedule in a...

Question 18

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?

Accepted Answer

The equilibrium quan...

Question 19

A movement upward and to the left along a given demand curve is called a decrease in demand.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  result in either a decrease in supply or an increase in supply.
B)  result in a movement along a stationary supply curve.
C)  result in a shift of demand.
D)  have no effect on the quantity supplied.E) A) and B)
F) None of the above

Exam 4: The Market Forces of Supply and Demand

Correct Answer
verified

Correct Answer
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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 paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct Answer
verified

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. 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

Correct Answer
verified

Individual demand curves are summed vertically to obtain the market demand curve.

Correct Answer
verified

The market for diamond rings is closely linked to the market for high-quality diamonds. If a large quantity of high-quality diamonds enters the market, then the

Correct Answer
verified

If the demand for a good falls when income falls, then the good is called an inferior good.

Correct Answer
verified

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 $2 is

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

A rightward shift of a supply curve is called a(n)

Correct Answer
verified

Figure 4-7 -Refer to Figure 4-7. The movement from Db to Da in the market for potato chips could be caused by a(n)

Correct Answer
verified

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $10, then the market quantity demanded is

Correct Answer
verified

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct Answer
verified

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Correct Answer
verified

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct Answer
verified

For the general population, a 10 percent increase in the price of cigarettes leads to a

Correct Answer
verified

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?

Correct Answer
verified
The equilibrium quan...
View Answer

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct Answer
verified

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Correct AnswerverifiedShow Answer

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. 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

Correct AnswerverifiedShow Answer

Individual demand curves are summed vertically to obtain the market demand curve.

Correct AnswerverifiedShow Answer

The market for diamond rings is closely linked to the market for high-quality diamonds. If a large quantity of high-quality diamonds enters the market, then the

Correct AnswerverifiedShow Answer

If the demand for a good falls when income falls, then the good is called an inferior good.

Correct AnswerverifiedShow Answer

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 $2 is

Correct AnswerverifiedShow Answer

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

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

A rightward shift of a supply curve is called a(n)

Correct AnswerverifiedShow Answer

Figure 4-7 -Refer to Figure 4-7. The movement from Db to Da in the market for potato chips could be caused by a(n)

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $10, then the market quantity demanded is

Correct AnswerverifiedShow Answer

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Correct AnswerverifiedShow Answer

Most studies have found that tobacco and marijuana are complements rather than substitutes.

Correct AnswerverifiedShow Answer

A movement upward and to the left along a given demand curve is called a decrease in demand.

Correct AnswerverifiedShow Answer

For the general population, a 10 percent increase in the price of cigarettes leads to a

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedThe equilibrium quan...View AnswerShow Answer

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 per hour, then it is likely that the

Correct AnswerverifiedShow Answer

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas. If the law of demand applies to these pizzas, then A could be

Correct AnswerverifiedShow Answer

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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The equilibrium quan...
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Correct Answer
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Correct Answer
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