Econ Final Multiple choice questions and answers for Chapter 4

Refer to Figure 4-1. Equilibrium price and quantity are, respectively,

$25 and 400.

Refer to Figure 4-1. At what price would there be an excess supply of 200 units of the good?

$30

If the law of demand applies to this good, them "?" could be:

0

Refer to Table 4-1. If these are the only four buyers in the market, then the market quantity demanded at a price of $8 is:

24 units.

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

A decrease in the price of mp3 players.

A decrease in demand is represented by:

A leftward shift of a demand curve.

Refer to Table 4-1. Whose demand does not obey the law of demand?

Chucks

Suppose the American Medical Association announces that men who shave their heads are less likely to die of heart failure. We could expect the current demand for:

Razors to increase.

Which of the following is not a characteristic of a perfectly competitive market?

Sellers set the price of the product.

What will happen in the rice market now if sellers expect higher rice prices in the near future?

The supply of rice will decrease.

Refer to Figure 4-1. At a price of $35,

There would be a surplus of 400 units.

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

An increase in the price of mp3 players.

In a competitive market, the quantity of a product produced and the price of the product are determined by:

Both buyers and sellers.

Refer to Table 4-1. If these are the only four buyers in the market, then when the price decreases from $6 to $4, the market quantity demanded:

Increases by 3 units.

What will happen in the rice market now if buyers expect higher rice prices in the near future?

The demand for rice will increase.