Question 1

A decrease in demand shifts the demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4-10 
-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for winter coats?

Accepted Answer

A)   an increase in the price of winter coats
B)   a decrease in the number of firms selling winter coats
C)   a decrease in the price of zippers and snaps
D)   a decrease in the price of winter hats and glovesE) A) and B)
F) B) and C)

Question 3

Price cannot fall so low that some sellers choose to supply a quantity of zero.

Accepted Answer

A) True 
 B)False

Question 4

Figure 4-13 
-Refer to Figure 4-13.The shift from S to S' is called a(n)

Accepted Answer

A)   decrease in supply.
B)   decrease in quantity supplied.
C)   increase in supply.
D)   increase in quantity supplied.E) B) and D)
F) None of the above

Question 5

Supply and demand together determine the price and quantity of a good sold in a market.

Accepted Answer

A) True 
 B)False

Question 6

The supply of a good or service is determined by

Accepted Answer

A)   those who buy the good or service.
B)   the government.
C)   those who sell the good or service.
D)   both those who buy and those who sell the good or service.E) All of the above
F) None of the above

Question 7

If the supply of pencils,a substitute for pens,increases,what will happen to the equilibrium price of pencils and to the equilibrium price of pens?

Accepted Answer

The equilibrium pric...

Question 8

If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

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 equilibrium quantity would decrease.
D)   The equilibrium price would decrease,and the equilibrium quantity would increase.E) A) and B)
F) All of the above

Question 9

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) A) and D)
F) A) and B)

Question 10

Table 4-5
 
-Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $4 is

Accepted Answer

A)   4 units.
B)   5 units.
C)   20 units.
D)   80 units.E) C) and D)
F) B) and C)

Question 11

An increase in supply will cause a decrease in price,which will cause an increase in demand.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and B)
F) A) and C)

Question 13

If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Accepted Answer

A) True 
 B)False

Question 14

If the price of a good is low,

Accepted Answer

A)   firms would increase profit by increasing output.
B)   the quantity supplied of the good could be zero.
C)   the supply curve for the good will shift to the left.
D)   firms can and should raise the price of the product.E) None of the above
F) B) and C)

Question 15

Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

Accepted Answer

A)   The number of sellers of mangos increases.
B)   There is an advance in technology that reduces the cost of producing mangos.
C)   The price of fertilizer decreases,and fertilizer is an input in the production of mangos.
D)   The price of mangos rises.E) A) and B)
F) A) and C)

Question 16

Pizza is a normal good if the demand

Accepted Answer

A)   for pizza rises when income rises.
B)   for pizza rises when the price of pizza falls.
C)   curve for pizza slopes upward.
D)   curve for pizza shifts to the right when the price of burritos rises,assuming pizza and burritos are substitutes.E) A) and B)
F) A) and C)

Question 17

If a seller in a competitive market chooses to charge more than the going price,then

Accepted Answer

A)   the sellers' profits must increase.
B)   the owners of the raw materials used in production would raise the prices for the raw materials.
C)   other sellers would also raise their prices.
D)   buyers will make purchases from other sellers.E) B) and D)
F) All of the above

Question 18

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) B) and D)
F) A) and B)

Question 19

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain,then we likely would see

Accepted Answer

A)   an increase in demand for brown rice and a decrease in demand for white rice.
B)   a decrease in demand for brown rice and an increase in demand for white rice.
C)   an increase in demand for both brown and white rice.
D)   no change in demand for either type of rice because weight loss is not a determinant of demand.E) A) and B)
F) All of the above

Question 20

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 B)
F) All of the above

Exam 4: The Market Forces of Supply and Demand

If a study by medical researchers finds that eating brown rice causes weight loss while eating white rice causes weight gain,then we likely would see

Correct AnswerverifiedShow Answer

If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

Correct AnswerverifiedShow Answer

If the price of a good is low,

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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 A to Supply C in the market for winter coats?

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If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13.The shift from S to S' is called a(n)

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

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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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Price cannot fall so low that some sellers choose to supply a quantity of zero.

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Which of the following events would cause a movement upward and to the right along the supply curve for mangos?

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A decrease in demand shifts the demand curve to the left.

Correct AnswerverifiedShow Answer

Table 4-5 -Refer to Table 4-5.If these are the only four sellers in the market,then the market quantity supplied at a price of $4 is

Correct AnswerverifiedShow Answer

Pizza is a normal good if the demand

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An increase in supply will cause a decrease in price,which will cause an increase in demand.

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If the supply of pencils,a substitute for pens,increases,what will happen to the equilibrium price of pencils and to the equilibrium price of pens?

Correct AnswerverifiedThe equilibrium pric...View AnswerShow Answer

The supply of a good or service is determined by

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When we move along a given demand curve,

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If a seller in a competitive market chooses to charge more than the going price,then

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When supply and demand both increase,equilibrium

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Supply and demand together determine the price and quantity of a good sold in a market.

Correct AnswerverifiedShow Answer

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The equilibrium pric...
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