Question 1

Market demand curves are obtained by

Accepted Answer

Market demand curves are obtained by summing the quantities every consumer is willing to buy at each different price, which reflects the total market demand at each price level.

Question 2

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The above figure shows the market for laptops. Which of the following shifts the supply curve from S0 to S2?

Accepted Answer

An increase in the productivity of workers manufacturing laptops would lead to an increase in supply, shifting the supply curve to the right from S0 to S2.

Question 3

If good weather conditions result in a larger than normal crop of peaches, then the

Accepted Answer

Good weather conditions increase the supply of peaches, leading to a lower equilibrium price and a higher equilibrium quantity.

Question 4

A surplus of cardboard boxes means that

Accepted Answer

A surplus occurs when the quantity supplied exceeds the quantity demanded at the current price.

Question 5

The phrase "a change in demand" most directly implies a

Accepted Answer

A change in demand refers to a shift of the entire demand curve, indicating that at the same prices, consumers are willing to buy different quantities than before.

Question 6

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The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

Accepted Answer

Figure B shows a decrease in both the demand and supply of HD televisions. This is because fewer people will want to purchase HD televisions due to the potential risk of eye damage, and manufacturers may also decrease production in response to lower demand.

Question 7

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Which figure above shows the effect of a technological advance in the production of pizza?

Accepted Answer

The answer of 
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Which figure above shows the effect of...

Question 8

The "quantity demanded" of any good or service is_{--------------------} during a specified time period and at a specified price.

Accepted Answer

The "quantity demanded" refers to the amount of a good or service that consumers are both willing and able to purchase at a given price during a specific time period.

Question 9

EBay

Accepted Answer

EBay is considered a market because it is a platform where buyers and sellers are brought together to conduct transactions, regardless of physical location.

Question 10

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price _{--------------------}, and the equilibrium quantity _{--------------------}.

Accepted Answer

In a competitive market, an increase in demand with no change in supply leads to a higher equilibrium price and an increase in equilibrium quantity.

Question 11

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Accepted Answer

When the current price is above the equilibrium price, there is a surplus. This surplus leads to a decrease in price, which in turn increases the quantity demanded.

Question 12

When the demand for a good decreases, its equilibrium price _{-------------}and equilibrium quantity_{-------------} .

Accepted Answer

When demand decreases, the demand curve shifts left, leading to a lower equilibrium price and a lower equilibrium quantity.

Question 13

Which of the following definitely results in a product's equilibrium price rising?

Accepted Answer

An increase in demand combined with a decrease in supply will definitely cause the equilibrium price to rise, as higher demand pushes prices up while lower supply reduces availability, further increasing prices.

Question 14

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In the figure above, a price of $15 per dozen roses results in

Accepted Answer

A shortage occurs when the quantity supplied is less than the quantity demanded at a given price. In this case, the quantity supplied is 10 dozen roses, while the quantity demanded is 15 dozen roses. Therefore, there is a shortage of 5 dozen roses.

Question 15

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The above figure shows the market for pizza. The market is in equilibrium when the cheese used to produce pizza falls in price. What point represents the most likely new price and quantity?

Accepted Answer

The answer of 
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The above figure shows the market for...

Question 16

Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

Accepted Answer

When demand increases and supply remains unchanged, both the equilibrium price and quantity increase.

Question 17

Market equilibrium occurs when

Accepted Answer

Market equilibrium occurs when the quantity demanded by consumers equals the quantity supplied by producers, resulting in no excess supply or demand.

Question 18

Which of the following results in a movement upward along the demand curve for movies?

Accepted Answer

An increase in the price of movie tickets results in a movement upward along the demand curve, as it leads to a decrease in the quantity demanded.

Question 19

A change in the price of a good _{--------------------}its supply curve and _{--------------------}a movement along its supply curve.

Accepted Answer

A change in the price of a good does not shift its supply curve; it causes a movement along the supply curve. The supply curve shifts only due to factors other than the price of the good itself, such as changes in production costs or technology.

Question 20

Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

Accepted Answer

A fall in the price of fertilizer reduces production costs, making it more profitable to supply more rutabagas at each price level, thus shifting the supply curve rightward.

Quiz 4: Demand and Supply

Market demand curves are obtained by

- The above figure shows the market for laptops. Which of the following shifts the supply curve from S0 to S2?

If good weather conditions result in a larger than normal crop of peaches, then the

A surplus of cardboard boxes means that

The phrase "a change in demand" most directly implies a

- The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change?

- Which figure above shows the effect of a technological advance in the production of pizza?

The "quantity demanded" of any good or service is-------------------- during a specified time period and at a specified price.

EBay

Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price --------------------, and the equilibrium quantity --------------------.