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Exam 4: The Market Forces of Supply and Demand

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Question 51

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When we move along a given demand curve,

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

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Question 52

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A improvement in production technology will shift the

A) supply curve to the right.
B) supply curve to the left.
C) demand curve to the right.
D) demand curve to the left.

E) None of the above
F) A) and D)

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Question 53

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When the market price is above the equilibrium price, suppliers are unable to sell all they want to sell.

Which of the following would shift the demand curve for gasoline to the right?

A decrease in income will shift the demand curve for an inferior good to the right.

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

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

Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $25 per dozen. We would expect a

When an increase in the price of one good lowers the demand for another good, the two goods are called complements.

Figure 4-11 ​ ​ -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.

The quantity demanded of a good is the amount that buyers are

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 left.

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase.

Figure 4-3 -Refer to Figure 4-3. The shift from D_a to D_b in the market for potato chips could be caused by

Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?

Suppose consumers expect the price of a good to be higher in the future than it is today. Would the current demand for the good increase or decrease?

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

An example of a perfectly competitive market would be the

An increase in the price of a product and an increase in the number of sellers in the market affect the supply curve in the same general way.

Table 4-7 The table below shows the quantities demanded of milk per month by four families at various prices. $\begin{array} { | l | l | l | l | l | } \hline \begin{array} { l } \text { Price of Gallon of } \\\text { Milk }\end{array} & \begin{array} { l } \text { The Berman } \\\text { Family }\end{array} & \begin{array} { l } \text { The Johnson } \\\text { Family }\end{array} & \begin{array} { l } \text { The Harris } \\\text { Family }\end{array} & \text { The Patel Family } \\\hline \$ 3.00 & 9 & 15 & 12 & 14 \\\hline \$ 4.00 & 8 & 12 & 10 & 10 \\\hline \$ 5.00 & 7 & 9 & 8 & 6 \\\hline \$ 6.00 & 6 & 6 & 6 & 2 \\\hline\end{array}$ -Refer to Table 4-7. If the four families listed are the only demanders in this market and the price of a gallon of milk increases from $4.00 to $5.00, what is the change in the market quantity demanded?