Question 1

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Accepted Answer

While tobacco and marijuana can be seen as substitutes, there is no conclusive evidence to support the argument that high cigarette prices encourage marijuana use. In fact, some studies suggest that tobacco and marijuana use may be negatively related, meaning that discouraging tobacco use could lead to a decrease in marijuana use as well. Therefore, the evidence does not support the argument that high cigarette prices encourage marijuana use.

Question 2

In a market,to find the total amount supplied at a particular price,

Accepted Answer

The total amount supplied at a particular price can be determined by adding up all the amounts that firms are willing and able to supply at that price. This is because each firm's supply curve shows the quantity that it is willing to supply at each price, and the market supply curve is the horizontal sum of all individual firms' supply curves.

Question 3

The sum of all the individual supply curves for a product is called

Accepted Answer

The sum of all the individual supply curves for a product is called market supply. This represents the total quantity of a product that all the individual producers are willing and able to sell at a given price in a specific market.

Question 4

Most studies indicate that tobacco and marijuana tend to be

Accepted Answer

Most studies indicate that tobacco and marijuana tend to be complements, meaning that the use of one is often associated with the use of the other.

Question 5

The market supply curve

Accepted Answer

The market supply curve represents the sum of the quantities supplied by all the sellers at each price of the good. This means that as the price of the good increases, the quantity supplied by sellers in the market also increases. It is found by horizontally adding the individual supply curves. The market supply curve slopes upwards because it is the sum of the quantities supplied by all the sellers at each price of the good. Therefore, options A, B, and C are incorrect.

Question 6

The law of supply states that,other things equal,

Accepted Answer

The law of supply states that, all else being equal, an increase in the price of a good will result in an increase in the quantity supplied.

Question 7

The line that relates the price of a good and the quantity supplied of that good is called the

Accepted Answer

The line that relates the price of a good and the quantity supplied of that good is called the supply curve, and it usually slopes upward. This is because as the price of a good increases, producers are willing to supply more of that good to the market due to the increased profit incentive.

Question 8

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

Accepted Answer

The statement describes the law of supply, which states that there is a positive relationship between the price of a good and the quantity supplied, holding other factors constant. This means that as the price of a good rises, producers are willing and able to supply more of the good to the market, and vice versa. The law of supply applies to all goods in the economy, not just a few, and is represented by an upward-sloping supply curve. Therefore, options B, C, and D are incorrect.

Question 9

A supply curve slopes upward because

Accepted Answer

The law of supply states that as price increases, quantity supplied increases. This is because an increase in price gives producers an incentive to supply a larger quantity, as they can earn more revenue from each unit sold. As a result, the supply curve slopes upward.

Question 10

A supply schedule is a table that shows the relationship between

Accepted Answer

A supply schedule is a table that shows the relationship between the price of a good or service and the quantity that suppliers are willing and able to produce and sell at that price. It does not consider input costs, quantity demanded, or profit in this relationship.

Question 11

Which of these statements best represents the law of supply?

Accepted Answer

The answer of Which of these statements best represents the...

Question 12

Other things equal,when the price of a good falls,the

Accepted Answer

When the price of a good falls, the quantity supplied decreases because suppliers are less willing to produce and sell the good at a lower price.

Question 13

The law of supply states that,other things equal,

Accepted Answer

The law of supply states that, other things being equal, an increase in the price of a good will result in an increase in the quantity supplied.

Question 14

If the price of a good is low,

Accepted Answer

The answer of If the price of a good is...

Question 15

Which of the following demonstrates the law of supply?

Accepted Answer

The answer of Which of the following demonstrates the law...

Question 16

The belief that tobacco is a "gateway drug" is consistent with

Accepted Answer

The answer of The belief that tobacco is a "gateway...

Question 17

Which of the following is not held constant in a supply schedule?

Accepted Answer

The price of the good is not held constant in a supply schedule. Instead, it is the independent variable that changes in order to determine the quantity of the good that producers are willing to supply at different prices. The other factors, such as technology, input prices, and expectations, are assumed to be constant while the supply schedule is being constructed.

Question 18

The difference between a supply schedule and a supply curve is that

Accepted Answer

A supply schedule is a table that lists the quantity of a good or service that producers are willing and able to sell at various prices. On the other hand, a supply curve is a graphical representation of the supply schedule that shows the relationship between the quantity supplied and the price of a good or service. Therefore, the correct answer is D - a supply schedule is a table and a supply curve is drawn on a graph. None of the other options accurately describe the difference between a supply schedule and a supply curve.

Question 19

The supply curve for a good is

Accepted Answer

The supply curve for a good relates price and quantity supplied, indicating how much of a good suppliers will be willing and able to produce and sell at each different price level.

Question 20

The quantity supplied of a good is the amount that

Accepted Answer

The quantity supplied refers to the amount of a good or service that sellers are willing and able to sell at a given price. It is determined by factors such as the price of the good, production costs, and the number of sellers in the market.

Quiz 4: The Market Forces of Supply and Demand

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

In a market,to find the total amount supplied at a particular price,

The sum of all the individual supply curves for a product is called

Most studies indicate that tobacco and marijuana tend to be

The market supply curve

The law of supply states that,other things equal,

The line that relates the price of a good and the quantity supplied of that good is called the

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

A supply curve slopes upward because

A supply schedule is a table that shows the relationship between

Which of these statements best represents the law of supply?

Other things equal,when the price of a good falls,the

The law of supply states that,other things equal,

If the price of a good is low,

Which of the following demonstrates the law of supply?

The belief that tobacco is a "gateway drug" is consistent with

Which of the following is not held constant in a supply schedule?

The difference between a supply schedule and a supply curve is that

The supply curve for a good is

The quantity supplied of a good is the amount that