Question 1

Figure 4-17 
-Refer to Figure 4-17.If the price is $10,then there would be a

Accepted Answer

A)   shortage of 400 units,and price would rise.
B)   surplus of 400 units,and price would rise.
C)   shortage of 600 units,and price would rise.
D)   surplus of 600 units,and price would rise.E) C) and D)
F) All of the above

Question 2

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies,while all the other factors that affect how much consumers want to buy are held constant.

Accepted Answer

A) True 
 B)False

Question 3

A competitive market is a market in which

Accepted Answer

A)   an auctioneer helps set prices and arrange sales.
B)   there are only a few sellers.
C)   the forces of supply and demand do not apply.
D)   no individual buyer or seller has any significant impact on the market price.E) A) and B)
F) B) and C)

Question 4

In competitive markets,which of the following is not correct?

Accepted Answer

A)   Firms produce identical products.
B)   No individual buyer can influence the market price.
C)   Some sellers can set prices.
D)   Buyers are price takers.E) A) and B)
F) A) and C)

Question 5

A decrease in the number of sellers in the market causes

Accepted Answer

A)   the supply curve to shift to the left.
B)   the supply curve to shift to the right.
C)   a movement up and to the right along a stationary supply curve.
D)   a movement downward and to the left along a stationary supply curve.E) B) and C)
F) A) and C)

Question 6

When quantity demanded has increased at every price,it might be because

Accepted Answer

A)   the number of buyers in the market has decreased.
B)   income has increased,and the good is an inferior good.
C)   the costs incurred by sellers producing the good have decreased.
D)   the price of a complementary good has decreased.E) A) and B)
F) A) and C)

Question 7

In markets,prices move toward equilibrium because of

Accepted Answer

A)   the actions of buyers and sellers.
B)   government regulations placed on market participants.
C)   increased competition among sellers.
D)   buyers' ability to affect market outcomes.E) A) and C)
F) B) and D)

Question 8

If a determinant of demand other than price changes,the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 9

Assume the market for tennis balls is perfectly competitive.When one tennis ball producer exits the market,

Accepted Answer

A)   the price of tennis balls increases.
B)   the price of tennis balls decreases.
C)   the price of tennis balls does not change.
D)   there is no longer a market for tennis balls.E) None of the above
F) A) and D)

Question 10

Another term for equilibrium price is

Accepted Answer

A)   dynamic price.
B)   market-clearing price.
C)   quantity-defining price.
D)   balance price.E) A) and B)
F) A) and C)

Question 11

When the price of a good is low,selling the good is profitable,and so the quantity supplied is large.

Accepted Answer

A) True 
 B)False

Question 12

Table 4-4
 
-Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

Accepted Answer

A)   3 units.
B)   11 units.
C)   25 units.
D)   44 units.E) B) and D)
F) B) and C)

Question 13

Figure 4-17 
-Refer to Figure 4-17.If price is $25,then quantity demanded and quantity supplied,respectively,are

Accepted Answer

A)   500 units and 500 units.
B)   500 units and 800 units.
C)   600 units and 600 units.
D)   800 units and 500 units.E) B) and D)
F) A) and C)

Question 14

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

Accepted Answer

A)   an increase in the price of wool shirts and a decrease in the price of raw cotton
B)   a decrease in the price of wool shirts and a decrease in the price of raw cotton
C)   an increase in the price of wool shirts and an increase in the price of raw cotton
D)   a decrease in the price of wool shirts and an increase in the price of raw cottonE) None of the above
F) B) and D)

Question 15

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

Question 16

A shortage exists in a market if

Accepted Answer

A)   there is an excess supply of the good.
B)   quantity supplied exceeds quantity demanded.
C)   the current price is below its equilibrium price.
D)   All of the above are correct.E) B) and D)
F) C) and D)

Question 17

Figure 4-13 
-Refer to Figure 4-13.If the supply curves that are drawn represent supply curves for single-family residential houses,then the movement from S to S' could be caused by a(n)

Accepted Answer

A)   increase in the price of apartments which are a substitute for single-family houses for many people looking for a place to live.
B)   newly-formed expectation by house-builders that prices of houses will increase significantly in the next six months.
C)   decrease in the price of lumber.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 18

A surplus exists in a market if

Accepted Answer

A)   there is an excess demand for the good.
B)   quantity demanded exceeds quantity supplied.
C)   the current price is above its equilibrium price.
D)   All of the above are correct.E) A) and C)
F) C) and D)

Question 19

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

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) B) and C)
F) None of the above

Question 20

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

Exam 4: The Market Forces of Supply and Demand

Figure 4-17 -Refer to Figure 4-17.If price is $25,then quantity demanded and quantity supplied,respectively,are

Correct AnswerverifiedShow Answer

A surplus exists in a market if

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

Assume the market for tennis balls is perfectly competitive.When one tennis ball producer exits the market,

Correct AnswerverifiedShow Answer

Another term for equilibrium price is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A decrease in the number of sellers in the market causes

Correct AnswerverifiedShow Answer

Figure 4-13 -Refer to Figure 4-13.If the supply curves that are drawn represent supply curves for single-family residential houses,then the movement from S to S' could be caused by a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In competitive markets,which of the following is not correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the price of a good is low,selling the good is profitable,and so the quantity supplied is large.

Correct AnswerverifiedShow Answer

The market demand curve shows how the total quantity demanded of a good varies as the income of buyers varies,while all the other factors that affect how much consumers want to buy are held constant.

Correct AnswerverifiedShow Answer

When quantity demanded has increased at every price,it might be because

Correct AnswerverifiedShow Answer

A competitive market is a market in which

Correct AnswerverifiedShow Answer

Table 4-4 -Refer to Table 4-4.If these are the only four sellers in the market,then the market quantity supplied at a price of $10 is

Correct AnswerverifiedShow Answer

Figure 4-17 -Refer to Figure 4-17.If the price is $10,then there would be a

Correct AnswerverifiedShow Answer

A shortage exists in a market if

Correct AnswerverifiedShow Answer

If a determinant of demand other than price changes,the demand curve shifts.

Correct AnswerverifiedShow Answer

In markets,prices move toward equilibrium because of

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified