Question 1

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Accepted Answer

A)   both the equilibrium price and quantity to decrease.
B)   both the equilibrium price and quantity to increase.
C)   the equilibrium price to increase and the equilibrium quantity to decrease.
D)   the equilibrium price to decrease and the equilibrium quantity to increase.E) None of the above
F) B) and D)

Question 2

A rightward shift of a demand curve is called an)

Accepted Answer

A)   increase in demand.
B)   decrease in demand.
C)   decrease in quantity demanded.
D)   increase in quantity demanded.E) A) and D)
F) A) and C)

Question 3

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 $5.00.
• The market quantity supplied of sandwiches is 10.
• The law of supply applies to the supply of sandwiches.
Then there is a

Accepted Answer

A)   shortage of 5 sandwiches, and the price would be expected to rise from its current level of $5.00.
B)   shortage of 5 sandwiches, and the price would be expected to fall from its current level of $5.00.
C)   surplus of 5 sandwiches, and the price would be expected to rise from its current level of $5.00.
D)   surplus of 5 sandwiches, and the price would be expected to fall from its current level of $5.00.E) A) and B)
F) A) and C)

Question 4

Which of the following would not shift the supply curve for mp3 players?

Accepted Answer

A)   an increase in the price of mp3 players
B)   a decrease in the number of sellers of mp3 players
C)   an increase in the price of plastic, an input into the production of mp3 players
D)   an improvement in the technology used to produce mp3 playersE) A) and D)
F) B) and D)

Question 5

The law of supply states that, other things equal, when the price of a good

Accepted Answer

A)   falls, the supply of the good rises.
B)   rises, the quantity supplied of the good rises.
C)   rises, the supply of the good falls.
D)   falls, the quantity supplied of the good rises.E) All of the above
F) B) and D)

Question 6

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Accepted Answer

The supply...

Question 7

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Accepted Answer

A) True 
 B)False

Question 8

A decrease in quantity demanded

Accepted Answer

A)   results in a movement downward and to the right along a demand curve.
B)   results in a movement upward and to the left along a demand curve.
C)   shifts the demand curve to the left.
D)   shifts the demand curve to the right.E) A) and D)
F) None of the above

Question 9

In a perfectly competitive market, buyers and sellers are price setters.

Accepted Answer

A) True 
 B)False

Question 10

Assume a market is perfectly competitive. When a new producer enters the market, the

Accepted Answer

A)   price in the market increases.
B)   price in the market decreases.
C)   price in the market does not change.
D)   market is no longer a competitive market.E) C) and D)
F) All of the above

Question 11

When all market participants are price takers who have no influence over prices, the markets have

Accepted Answer

A)   only a few buyers and sellers.
B)   numerous sellers but only a few buyers.
C)   numerous buyers but only a few sellers.
D)   numerous buyers and sellers.E) A) and B)
F) All of the above

Question 12

Which of the following events must cause equilibrium quantity to rise?

Accepted Answer

A)   demand increases and supply decreases
B)   demand and supply both decrease
C)   demand decreases and supply increases
D)   demand and supply both increaseE) B) and C)
F) A) and B)

Question 13

Table 4-13
The demand schedule below pertains to sandwiches demanded per week.
 
-Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Accepted Answer

A)   only Harry's
B)   only Darby's
C)   both Harry's and Darby's
D)   neither Harry's nor Darby'sE) All of the above
F) C) and D)

Question 14

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Accepted Answer

A) True 
 B)False

Question 15

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Accepted Answer

A)   decreases.
B)   increases.
C)   remains constant, but we observe a movement downward and to the right along the demand curve.
D)   remains constant, but we observe a movement upward and to the left along the demand curve.E) A) and D)
F) A) and C)

Question 16

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos 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.E) A) and C)
F) A) and B)

Question 17

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins 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.E) A) and D)
F) None of the above

Question 18

What would happen to the equilibrium price and quantity of lattés if consumers' incomes rise and lattés 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.E) A) and B)
F) All of the above

Question 19

A market includes

Accepted Answer

A)   buyers only.
B)   sellers only.
C)   both buyers and sellers.
D)   the place where transactions occur but not the people involved.E) A) and D)
F) B) and D)

Question 20

Table 4-16
The following table shows the supply and demand schedules in a market.
 
-Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Accepted Answer

The answer of Table 4-16
The following table shows the supply...

Exam 4: The Market Forces of Supply and Demand

When all market participants are price takers who have no influence over prices, the markets have

Correct Answer
verified

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Correct Answer
verified

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Correct Answer
verified

Which of the following events must cause equilibrium quantity to rise?

Correct Answer
verified

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Correct Answer
verified

Which of the following would not shift the supply curve for mp3 players?

Correct Answer
verified

In a perfectly competitive market, buyers and sellers are price setters.

Correct Answer
verified

A rightward shift of a demand curve is called an)

Correct Answer
verified

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Correct Answer
verified

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct Answer
verified
The supply...
View Answer

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Correct Answer
verified

The law of supply states that, other things equal, when the price of a good

Correct Answer
verified

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Correct Answer
verified

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct Answer
verified

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

Correct Answer
verified

A market includes

Correct Answer
verified

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

Correct Answer
verified

A decrease in quantity demanded

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

When all market participants are price takers who have no influence over prices, the markets have

Correct AnswerverifiedShow Answer

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $8, how large of a surplus will there be in this market?

Correct AnswerverifiedShow Answer

Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause

Correct AnswerverifiedShow Answer

Which of the following events must cause equilibrium quantity to rise?

Correct AnswerverifiedShow Answer

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Correct AnswerverifiedShow Answer

Which of the following would not shift the supply curve for mp3 players?

Correct AnswerverifiedShow Answer

In a perfectly competitive market, buyers and sellers are price setters.

Correct AnswerverifiedShow Answer

A rightward shift of a demand curve is called an)

Correct AnswerverifiedShow Answer

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, whose demand for sandwiches conforms to the law of demand?

Correct AnswerverifiedShow Answer

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

Correct AnswerverifiedThe supply...View AnswerShow Answer

The University of Iowa was voted the #1 "party school" in 2013. The University of Iowa is located in Iowa City. At the end of August each year, the market demand for beer in Iowa City

Correct AnswerverifiedShow Answer

The law of supply states that, other things equal, when the price of a good

Correct AnswerverifiedShow Answer

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Correct AnswerverifiedShow Answer

Assume a market is perfectly competitive. When a new producer enters the market, the

Correct AnswerverifiedShow Answer

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

Correct AnswerverifiedShow Answer

A market includes

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 rises?

Correct AnswerverifiedShow Answer

A decrease in quantity demanded

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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
The supply...
View 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