ch. 4 quiz

Refer to Figure 4-21. What is the equilibrium quantity in this market?

2.5 units

Refer to Figure 4-24. All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

DA to DB

Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Point C to Point B

Which of the following events could cause an increase in the supply of ceiling fans?

The number of sellers of ceiling fans increases.

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens

True

An increase in the price of blueberries would lead to a(n)

a movement up and to the right along the supply curve for blueberries

Which of the following would cause price to decrease?

a surplus of the good

When we move along a given supply curve,

all nonprice determinants of supply are held constant.

If, at the current price, there is a surplus of a good, then

sellers are producing more than buyers wish to buy

Suppose you make jewelry. If the price of gold falls, then we would expect you to

be willing and able to produce more jewelry than before at each possible price.

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

increase in the demand for muffins

The sum of all the individual demand curves for a product is called

market demand

The highest form of competition is called

perfect competition

Refer to Table 4-11. If the price were $4, a

shortage of 25 units would exist, and price would tend to rise.

The law of supply and demand asserts that

the price of a good will eventually rise in response to an excess demand for that good