Chapter 4
A weaker demand together with a stronger supply would necessarily result in A. a lower price B. a higher price C. an increase in equilibrium quantity D. a decrease in equilibrium quantity
A
An increase in demand is represented by A. a movement downward and to the right along a demand curve B. a movement upward and to the left along a demand curve C. a rightward shift of a demand curve D. a leftward shift of a demand curve
C
Buyers and sellers who have no influence on market price are referred to as A. market pawns B. monopolists C. price takers D. price makers
C
If a surplus exists in a market, then we know that the actual price is A. above the equilibrium price and quantity supplied is greater than quantity demanded B. above the equilibrium price and quantity demanded is greater than quantity supplied C. below the equilibrium price and quantity demanded is greater than quantity supplied D. below the equilibrium price and quantity supplied is greater than quantity demanded
A
Suppose roses are currently selling $20 per dozen, but the equilibrium price of roses is $30 per dozen. We should expect a A. shortage to exist and the market price of roses to increase B. shortage to exist and the market price of roses to decrease C. surplus to exist and the market price of roses to increase D. surplus to exist and the market price of roses to decrease
A
What will happen in the rice market now if buyers expect higher rice prices in the near future? A. the demand for rice will increase B. the demand for rice will decrease C. the demand for rice will be unaffected D. the supply of rice will increase
A
If the number of sellers in a market increases, then the A. demand in that market will increase B. supply in that market will increase C. supply in that market will decrease D. demand in that market will decrease
B
Refer to Figure 4-10. In this market, equilibrium price and quantity, respectively, are A. $15 and 400 B. $20 and 600 C. $25 and 500 D. $25 and 800
B
The supply curve for cookbooks shifts A. when a determinant of the supply of cookbooks other than technology changes B. when a determinant of the supply of cookbooks other than the price of cookbooks changes C. when any determinant of the supply of cookbooks changes D. only when the number of cookbook-sellers changes
B
If buyers today become more willing and able than before to purchase larger quantities of Vanilla Coke at each price of Vanilla Coke, then A. we will observe a movement downard and to the right along the demand curve for vanilla coke B. we will observe a movement upward and to the left along the demand curve for vanilla coke C. the demand curve for vanilla coke will shift to the right D. the demand curve for vanilla coke will shift to the right
C
If something happens to alter the quantity supplied at any given price, then A. the demand curve will become steeper B. the demand curve will become flatter C. the demand curve shifts D. we move along the demand curve
C
Refer to Figure 4-1. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is A. 12 units B. 14 units C. 19 units D. 21 units
C
Refer to Figure 4-12. All else equal, the destruction of thousands of turkeys would cause a move from A. from Da to Db B. from Db to Da C. from x to y D. from y to x
C
Refer to Figure 4-4. The graphs show the demand for cigarettes. In panel (a), the arrows are consistent with which of the following events? A. Tobacco and marijuana are complements and the price of marijuana decreased B. Tobacco is a "gateway drug" and the price of marijuana increased C. The price of cigarettes increased D. The arrows are consistent with all of these events
C
The supply curve for coffee A. shifts when the price of coffee changes because the price of coffee is measured on the vertical axis of the graph B. shifts when the price of coffee changes because the quantity supplied of coffee is measured on the horizontal axis of the graph C. does not shift when the price of coffee changes because the price of coffee is measured on the vertical axis of the graph D. does not shift when the price of coffee changes because the quantity supplied of coffee is measured on the horizontal axis of the graph
C
Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the A. demand for flour to increase B. demand for flour to decrease C. supply of flour to increase D. supply of flour to decrease
C
A decrease in demand is represented by A. a movement downward and to the right along a demand curve B. a movement upward and to the left along a demand curve C. a rightward shift of a demand curve D. a leftward shift of a demand curve
D
A movement upward and to the right along a supply curve is called A. an increase in supply B. a decrease in supply C. a decrease in quantity supplied D. an increase in quantity supplied
D
All market participants are price takers that have no influence over prices in markets that feature A. only a few buyers and a few sellers B. numerous sellers but only a few buyers C. numerous buyers but only a few sellers D. numerous buyers and numerous sellers
D
Refer to Figure 4-14. Panel (a) shows which of the following? A. an increase in demand and an increase in quantity supplied B. an increase in demand and an increase in supply C. an increase in quantity demanded and an increase in quantity supplied D. an increase in quantity demanded and an increase in supply
D
Refer to Figure 4-14. Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south? A. Panel (a) B. Panel (b) C. Panel (c) D. Panel (d)
D
Refer to Figure 4-3. The movement from D to D1 could be caused by A. an increase in price B. a decrease in the price of a complement C. a technological advance D. a decrease in the price of a substitute
D