Question 1

Figure 4-2 
-Refer to Figure 4-2.The movement from point A to point B on the graph shows

Accepted Answer

The movement from point A to point B on the graph shows an increase in quantity demanded since the price of the product decreased, causing consumers to want to buy more of it. This is represented by the movement along the demand curve, rather than a shift in the entire curve.

Question 2

Today's demand curve for gasoline could shift in response to

Accepted Answer

A change in the expected future price of gasoline can shift today's demand curve for gasoline as consumers adjust their current buying behavior in anticipation of future price changes. Changes in the current price of gasoline affect the quantity demanded rather than shifting the demand curve itself, and changes in the number of sellers affect the supply side, not demand.

Question 3

Figure 4-4
Panel (a)Panel (b)  
-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?

Accepted Answer

The arrows in Panel (a) show a decrease in quantity demanded in response to an increase in price, indicating that the demand curve for cigarettes has a negative slope, consistent with the law of demand. Therefore, the arrows are consistent with an increase in the price of cigarettes. The other options proposed (A and B) are not reflected in the graph.

Question 4

Figure 4-3 
-Refer to Figure 4-3.The movement from D' to D could be caused by

Accepted Answer

A decrease in income, assuming the good is inferior, would increase demand for the good, causing the demand curve to shift from D' to D.

Question 5

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought,and that this will cause the price of peanuts to double by the end of the year.As a result,

Accepted Answer

The news about the peanut crop being wiped out by drought causing the price of peanuts to double will result in an immediate increase in the demand for peanut butter. This is because consumers anticipate the shortage of peanuts and the resulting increase in price, causing them to stock up on peanut butter now before the price goes up. Therefore, the answer is B.

Question 6

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

The answer of For teenagers,a 10 percent increase in the...

Question 7

Figure 4-2 
-Refer to Figure 4-2.It is apparent from the figure that

Accepted Answer

The figure shows a typical demand curve, sloping downwards from left to right, indicating a negative relationship between price and quantity demanded. This conforms to the law of demand. There is no information indicating that the good is inferior or that demand decreases as income increases.

Question 8

Figure 4-4
Panel (a)Panel (b)  
-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?

Accepted Answer

The arrows are consistent with a decrease in demand, which is consistent with a tax being placed on cigarettes, as this would increase the price of cigarettes and therefore decrease demand. A, B, and C would not necessarily result in a decrease in demand for cigarettes.

Question 9

For the general population,a 10 percent increase in the price of cigarettes leads to a

Accepted Answer

The answer of For the general population,a 10 percent increase...

Question 10

If Juan expects to earn a higher income next month,he may choose to

Accepted Answer

If Juan expects to earn a higher income next month, he may choose to save less now and spend more of his current income on goods and services, anticipating that he will have more money to save or spend in the future.

Question 11

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

Accepted Answer

The end of August is when college students return to Warrensburg for the start of the fall semester. This brings an increase in demand for fast food as students may not yet have fully stocked kitchens or may be seeking convenience during the busy back-to-school season.

Question 12

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

Accepted Answer

If buyers expect higher rice prices in the near future, they will try to stock up on rice now, which will lead to an increase in demand for rice.

Question 13

Figure 4-4
Panel (a)Panel (b)  
-Refer to Figure 4-4.The graphs show the demand for cigarettes.In Panel (b),the arrows are consistent with which of the following events?

Accepted Answer

The prohibition of cigarette advertisements on television would likely decrease the demand for cigarettes, shifting the demand curve to the left, which is consistent with the arrows in Panel (b).

Question 14

Figure 4-2 
-Refer to Figure 4-2.The movement from point A to point B on the graph is caused by

Accepted Answer

The answer of Figure 4-2 
-Refer to Figure 4-2.The movement...

Question 15

Figure 4-3 
-Refer to Figure 4-3.The movement from D to D' could be caused by

Accepted Answer

The movement from D to D' represents an increase in quantity demanded, which could be caused by a decrease in the price of a substitute. As the price of the substitute decreases, consumers may switch to the cheaper option, leading to an increase in demand for the original product.

Question 16

Figure 4-3 
-Refer to Figure 4-3.The shift from D to D' is called

Accepted Answer

The shift from D to D' represents a decrease in demand, as there has been a shift to the left of the demand curve. This means that at any given price level, consumers are willing and able to purchase less of the product. It is not a change in quantity demanded, which refers to a movement along the demand curve in response to a change in price.

Question 17

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs.As a result of this information,today's demand curve for Mustangs

Accepted Answer

The $3,000 rebate will make the price of Mustangs lower, which will increase the quantity demanded at any given price. This will cause the demand curve to shift to the right. Therefore, the correct answer is B, as the demand curve shifts to the left in the opposite direction of the shift.

Question 18

If the number of buyers in a market decreases,then

Accepted Answer

The decrease in the number of buyers will lead to a decrease in demand as there are fewer people willing and able to purchase goods or services in the market. This can lead to a surplus of goods or services, which could lead to a decrease in supply in the long run.

Question 19

Figure 4-3 
-Refer to Figure 4-3.If the demand curve shifts from D to D',then

Accepted Answer

When the demand curve shifts from D to D', it means that at each possible price, people are willing to buy less of the good than before. This could be due to various reasons such as a decrease in consumer preferences or an increase in the price of substitutes. As a result, firms would be willing to supply less of the good than before at each possible price. People's incomes evidently have not decreased as this is not the reason for the shift in the demand curve, and the price of the product has not necessarily increased.

Question 20

Which of the following does not affect an individual's demand curve?

Accepted Answer

The number of buyers does not affect an individual's demand curve. The demand curve represents the relationship between the quantity of a good that an individual is willing to purchase and the price of that good, assuming all other factors remain constant. The number of buyers does not have a direct impact on the quantity of the good that an individual is willing to purchase at a certain price.

Quiz 4: The Market Forces of Supply and Demand

Figure 4-2 -Refer to Figure 4-2.The movement from point A to point B on the graph shows

Today's demand curve for gasoline could shift in response to

Figure 4-4 Panel (a) Panel (b) -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?

Figure 4-3 -Refer to Figure 4-3.The movement from D' to D could be caused by

You love peanut butter.You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought,and that this will cause the price of peanuts to double by the end of the year.As a result,

For teenagers,a 10 percent increase in the price of cigarettes leads to a

Figure 4-2 -Refer to Figure 4-2.It is apparent from the figure that

Figure 4-4 Panel (a) Panel (b) -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?

For the general population,a 10 percent increase in the price of cigarettes leads to a

If Juan expects to earn a higher income next month,he may choose to

Warrensburg is a small college town in Missouri.At the end of August each year,the market demand for fast food in Warrensburg

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

Figure 4-4 Panel (a) Panel (b) -Refer to Figure 4-4.The graphs show the demand for cigarettes.In Panel (b) ,the arrows are consistent with which of the following events?

Figure 4-2 -Refer to Figure 4-2.The movement from point A to point B on the graph is caused by

Figure 4-3 -Refer to Figure 4-3.The movement from D to D' could be caused by

Figure 4-3 -Refer to Figure 4-3.The shift from D to D' is called

Ford Motor Company announces that next month it will offer $3,000 rebates on new Mustangs.As a result of this information,today's demand curve for Mustangs

If the number of buyers in a market decreases,then

Figure 4-3 -Refer to Figure 4-3.If the demand curve shifts from D to D',then

Which of the following does not affect an individual's demand curve?