Question 1

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

Accepted Answer

A) A change in production technology 
B) A change in the price of the good or service 
C) A change in expectations about the future price of the good or service 
D) A change in input prices 
A) A change in production technology 
B) A change in the price of the good or service 
C) A change in expectations about the future price of the good or service 
D) A change in input prices B

Question 2

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

Accepted Answer

A) $25 and 500 units. 
B) $15 and 300 units. 
C) $20 and 400 units. 
D) $10 and 200 units. 
A) $25 and 500 units. 
B) $15 and 300 units. 
C) $20 and 400 units. 
D) $10 and 200 units. C

Question 3

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

Accepted Answer

A) increases by 28 units. 
B) increases by 14 units. 
C) decreases by 42 units. 
D) increases by 10 units. 
A) increases by 28 units. 
B) increases by 14 units. 
C) decreases by 42 units. 
D) increases by 10 units. B

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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?

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. 
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.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Surpluses drive price up, while shortages drive price down.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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?

Accepted Answer

The equilibrium quan

Question 13

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

Accepted Answer

A) There is a shortage of oranges. 
B) The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C) The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D) At the current price, quantity demanded is greater than quantity supplied. 
A) There is a shortage of oranges. 
B) The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. 
C) The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. 
D) At the current price, quantity demanded is greater than quantity supplied.

Question 14

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

Accepted Answer

A) 70. 
B) 100. 
C) 110. 
D) 130. 
A) 70. 
B) 100. 
C) 110. 
D) 130.

Question 15

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

Accepted Answer

A) The government would provide tax incentives to encourage people to become farmers. 
B) The government would subsidize the production of food. 
C) The prices of food and the wages of farmers would adjust. 
D) There are no market mechanisms to remove the shortage. 
A) The government would provide tax incentives to encourage people to become farmers. 
B) The government would subsidize the production of food. 
C) The prices of food and the wages of farmers would adjust. 
D) There are no market mechanisms to remove the shortage.

Question 16

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

Accepted Answer

A) an increase in the number of commercial bakers. 
B) a decrease in the number of commercial bakers. 
C) a decrease in income. 
D) a decrease in the price of muffins. 
A) an increase in the number of commercial bakers. 
B) a decrease in the number of commercial bakers. 
C) a decrease in income. 
D) a decrease in the price of muffins.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

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. 
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.

Question 19

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 20

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.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

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,

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

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.

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

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

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?

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

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.

Surpluses drive price up, while shortages drive price down.

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

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?

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

Table 4-1 ​ ​ Price (Dollarsper unit) Quantity Demanded (Units) 16 80 21 -Refer to Table 4-1. If the law of demand applies to this good, then Q1 could be

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

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

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

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

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?

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.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

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

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

Table 4-1 Price (Dollarsper unit) Quantity Demanded (Units) 16 80 21 -Refer to Table 4-1. If the law of demand applies to this good, then Q₁ could be