Chapter 4: The Market Forces of Supply and Demand
Q2001. (0.2 point)
The forces that make market economies work are
a. price and quality.
b. price ceiling and floor.
c. supply and demand.
d. taxes and policies.
Q2002. (0.2 point)
The quantity demanded of a good is the amount of good that buyers are
a. able to purchase.
b. willing, able, and need to purchase.
c. willing and able to purchase.
d. willing to purchase.
Q2003. (0.2 point)
Other things equal, the law of demand states that a fail in
[Link] causes quantity demanded to increase.
[Link] causes quantity demanded to decrease
[Link] demanded causes price to increase
[Link] demanded causes price to decrease
Q2004. (0.2 point)
A table shows the relationship between………is known as a demand schedule
a. quantity demanded and quantity supplied.
b. income and quantity demanded.
c. price and quantity demanded.
d. price and income.
Q2005. (0.2 point)
The demand curve for a good is a line that shows relationship between
a. price and quantity demanded.
b. income and quantity demanded.
c. quantity demanded and quantity supplied.
d. price and income.
Q2006. (0.2 point)
Which the following changes would shift the demand curve for a good or service
EXCEPT ?
a. a change in income
b. a change in the price of the good or service
c. a change in expectations about the future price of the good or service
d. a change in the price of a related good or service
Q2007. (0.2 point)
The law of supply states an increase in the price of a good will
a. increase supply
b. decrease supply
c. increase quantity supplied
d. decrease quantity supplied
Q2008. (0.2 point)
Sum the individual supply curves horizontally to obtain
a. total supply
b. market supply
c. aggregate supply
d. total output
Q2009. (0.2 point)
The supply and demand curves intersect at point which is called
a. market harmony
b. coincidence
c. equivalence
d. equilibrium
Q2010. (0.2 point)
Suppose eggs are currently selling for $50 per dozen, but the equilibrium price of eggs is
$40 per dozen. We would expect a
a. shortage to exist and the market price of eggs to increase
b. shortage to exist and the market price of eggs to decrease
c. surplus to exist and the market price of eggs to increase
d. surplus to exist and the market price of eggs to decrease
Q2011. (0.2 point)
Suppose eggs are currently selling for $30 per dozen, but the equilibrium price of eggs is
$40 per dozen. We would expect a
a. shortage to exist and the market price of eggs to increase
b. shortage to exist and the market price of eggs to decrease
c. surplus to exist and the market price of eggs to increase
d. surplus to exist and the market price of eggs to decrease
Short Answers
Chapter 4: The Market Forces of Supply and Demand
Q2023. (0.5 point)
Identify characteristics of a perfectly competitive market.
Q2024. (0.5 point)
What is the law of supply?
Q2025. (0.5 point)
What is the equilibrium quantity?
Figure 4-18
price
20
S
18
16
14
12
10
2
D
1 2 3 4 5 6 7 8 9 10 quantity
Q2026. (0.5 point)
Refer to Figure 4-18. What is the equilibrium price in this market?
Q2027. (0.5 point)
Refer to Figure 4-18. What is the equilibrium quantity in this market?
Q2028. (0.5 point)
Refer to Figure 4-18. At a price of $14, there is a surplus………. units
Q2029. (0.5 point)
Refer to Figure 4-18. At a price of $10, there is a shortage………units
Essays
Chapter 4: The Market Forces of Supply and Demand
Q2033. (3 points)
Using supply-and-demand diagrams, show the effect of the following events on the
market for sweatshirts.
a. A hurricane destroys the cotton crop.
b. The price of hoodie falls.
c. People like to do exercise in winter.
d. New technology is used