Question 1

Today, producers changed their expectations about the future. This change

Accepted Answer

A)   can cause a movement along a supply curve.
B)   can affect future supply, but not today's supply.
C)   can affect today's supply.
D)   cannot affect either today's supply or future supply.

Question 2

Equilibrium price must increase when demand

Accepted Answer

A)   increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.
B)   increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.
C)   decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.
D)   decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.

Question 3

A rightward shift of a demand curve is called a(n)

Accepted Answer

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

Question 4

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Accepted Answer

A) True 
 B)False

Question 5

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 6

An increase in the price of a substitute good will shift the demand curve for a good to the right.

Accepted Answer

A) True 
 B)False

Question 7

If something happens to alter the quantity demanded at any given price, then

Accepted Answer

A)   the demand curve becomes steeper.
B)   the demand curve becomes flatter.
C)   the demand curve shifts.
D)   we move along the demand curve.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

The current price of neckties is $30, but the equilibrium price of neckties is $25. As a result,

Accepted Answer

A)   the quantity supplied of neckties exceeds the quantity demanded of neckties at the $30 price.
B)   the equilibrium quantity of neckties exceeds the quantity demanded at the $30 price.
C)   there is a surplus of neckties at the $30 price.
D)   All of the above are correct.

Question 10

Advances in production technology typically reduce firms' costs.

Accepted Answer

A) True 
 B)False

Question 11

An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

Accepted Answer

A) True 
 B)False

Question 12

The law of supply states that, other things equal, an increase in

Accepted Answer

A)   price causes quantity supplied to increase.
B)   price causes quantity supplied to decrease.
C)   quantity supplied causes price to increase.
D)   quantity supplied causes price to decrease.

Question 13

A likely example of complementary goods for most people would be

Accepted Answer

A)   butter and margarine.
B)   lawnmowers and automobiles.
C)   chips and salsa.
D)   cola and lemonade.

Question 14

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)   D

Question 15

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Accepted Answer

The answer of Fill in the table below, showing whether...

Question 16

Today, people changed their expectations about the future. This change

Accepted Answer

A)   can cause a movement along a demand curve.
B)   can affect future demand but not today's demand.
C)   can affect today's demand.
D)   cannot affect either today's demand or future demand.

Question 17

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 18

A higher price for batteries would result in a(n)

Accepted Answer

A)   increase in the demand for flashlights.
B)   decrease in the demand for flashlights.
C)   increase in the demand for batteries.
D)   decrease in the demand for batteries.

Question 19

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 increase

Question 20

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.

Accepted Answer

A) True 
 B)False

Exam 4: The Market Forces of Supply and Demand

An increase in demand will cause an increase in price, which will cause an increase in quantity supplied.

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Advances in production technology typically reduce firms' costs.

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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.

Correct AnswerverifiedShow Answer

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

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Today, producers changed their expectations about the future. This change

Correct AnswerverifiedShow Answer

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

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An increase in the price of a substitute good will shift the demand curve for a good to the right.

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It is not possible for demand and supply to shift at the same time.

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The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.

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The current price of neckties is $30, but the equilibrium price of neckties is $25. As a result,

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

Correct AnswerverifiedShow Answer

When a seller expects the price of its product to decrease in the future, the seller's supply curve shifts left now.

Correct AnswerverifiedShow Answer

A rightward shift of a demand curve is called a(n)

Correct AnswerverifiedShow Answer

Today, people changed their expectations about the future. This change

Correct AnswerverifiedShow Answer

A likely example of complementary goods for most people would be

Correct AnswerverifiedShow Answer

A higher price for batteries would result in 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

The law of supply states that, other things equal, an increase in

Correct AnswerverifiedShow Answer

Equilibrium price must increase when demand

Correct AnswerverifiedShow Answer

If something happens to alter the quantity demanded at any given price, then

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