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