Question 1

If the price of a good is low,

Accepted Answer

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

Question 2

Figure 4-2
The graph below pertains to the supply of paper to colleges and universities.

-Refer to Figure 4-2.All else equal,buyers expecting paper to be more expensive in the future would cause a current move from

Accepted Answer

If buyers expect paper to be more expensive in the future, they are likely to increase their current demand, causing a movement along the demand curve from point x to point y, where the quantity demanded is higher at the current price.

Question 3

Which of the following would cause price to decrease?

Accepted Answer

A surplus of the good means there is more supply than demand, which leads to decreased prices as sellers try to get rid of excess inventory.

Question 4

In markets,prices move toward equilibrium because of

Accepted Answer

Prices move toward equilibrium because of the actions of buyers and sellers. As buyers and sellers interact in the market, prices adjust until the quantity demanded and supplied are equal, resulting in an equilibrium price. Government regulations and increased competition among sellers may affect prices in the short term, but in the long term, it is the actions of buyers and sellers that determine the equilibrium price. Buyers also have some ability to affect market outcomes, but it is their collective actions with sellers that ultimately determine the market price.

Question 5

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

Accepted Answer

If buyers expect higher artichoke prices in the near future, they are likely to purchase more artichokes now, leading to an increase in demand.

Question 6

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 takes into account the total quantity of the product that suppliers are willing and able to sell at various prices. Total supply, aggregate supply, and total output are not the correct terms for this concept.

Question 7

An increase in the price of a good will

Accepted Answer

The answer of An increase in the price of a...

Question 8

The unique point at which the supply and demand curves intersect is called

Accepted Answer

The unique point at which the supply and demand curves intersect is called equilibrium. This is where the quantity demanded equals the quantity supplied, and the market is in a state of balance.

Question 9

-From the above figure,at a price of

Accepted Answer

The answer of 
-From the above figure,at a price of
...

Question 10

Table 4-2 $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { FirmA's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm B's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm C's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Fim D's } \
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 0 & 10 & 0 & 0 & 0 \
\hline \$ 2 & 8 & 3 & 4 & 5 \
\hline \$ 4 & 6 & 6 & 8 & 10 \
\hline \$ 6 & 4 & 9 & 12 & 15 \
\hline \$ 8 & 2 & 12 & 8 & 20 \
\hline \$ 10 & 0 & 15 & 4 & 25 \
\hline
\end{array}$$
-Refer to Table 4-2.Which supply schedules obey the law of supply?

Accepted Answer

The answer of Table 4-2 \[\begin{array} { | c |...

Question 11

When the price of a good is lower than the equilibrium price,

Accepted Answer

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

Question 12

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

Accepted Answer

A supply schedule is a table that shows the quantity supplied at different prices, while a supply curve is a graphical representation of the same information. Therefore, the main difference between the two is their format: one is presented in a table, and the other is a graph. Additionally, both a supply schedule and a supply curve can shift based on changes in factors such as the cost of production, technology, or government policies.

Question 13

Table 4-2 $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Price } & \begin{array} { c } 
\text { FirmA's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm B's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Firm C's } \
\text { Quantity } \
\text { Supplied }
\end{array} & \begin{array} { c } 
\text { Fim D's } \
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline \$ 0 & 10 & 0 & 0 & 0 \
\hline \$ 2 & 8 & 3 & 4 & 5 \
\hline \$ 4 & 6 & 6 & 8 & 10 \
\hline \$ 6 & 4 & 9 & 12 & 15 \
\hline \$ 8 & 2 & 12 & 8 & 20 \
\hline \$ 10 & 0 & 15 & 4 & 25 \
\hline
\end{array}$$
-Refer to Table 4-4.If these are the only four sellers in the market,then when the price increases from $6 to $8,the market quantity supplied

Accepted Answer

According to Table 4-4, at a price of $6, the total quantity supplied by the four sellers is 18 units. At a price of $8, the quantity supplied by Seller A remains at 2 units, but the other three sellers increase their quantity supplied. Seller B increases by 6 units, Seller C increases by 4 units, and Seller D increases by 2 units. Therefore, the total quantity supplied at $8 is 18 + 6 + 4 + 2 = 30 units, an increase of 12 units from the quantity supplied at $6. Therefore, the market quantity supplied increases by 2 units from each seller (12 units/4 sellers = 3 units; 3 units/1.5 increase in price = 2 units increase in quantity supplied per seller).

Question 14

At the equilibrium price,the quantity of the good that buyers are willing and able to buy

Accepted Answer

At the equilibrium price, the quantity demanded by buyers is exactly equal to the quantity supplied by sellers. This is the point where the market clears and there is no excess demand or supply. Therefore, option B is the correct choice.

Question 15

"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

This is a straightforward statement of the law of supply, which states that ceteris paribus (i.e., all other things being equal), there is a positive relationship between the price of a good and the quantity supplied of that good. Therefore, as the price of a good increases, firms have an incentive to produce more of it, while a decrease in price incentivizes them to produce less. This relationship is graphically represented by an upward-sloping supply curve.

Question 16

When quantity supplied increases at every possible price,we know that the supply curve has

Accepted Answer

When quantity supplied increases at every possible price, it means that the supply has increased. This causes the supply curve to shift to the right, as the quantity supplied has increased at every price point.

Question 17

The quantity supplied of a good is the amount that

Accepted Answer

Quantity supplied refers specifically to the amount of a good that sellers are willing and able to sell at a given price. This is different from the quantity demanded, which refers to the amount of a good that buyers are willing and able to purchase at a given price.

Question 18

Figure 4-2
The graph below pertains to the supply of paper to colleges and universities.

-Refer to Figure 4-2.All else equal,an increase in the price of the pulp used in the paper production process would cause a move from

Accepted Answer

The answer of Figure 4-2
The graph below pertains to the...

Question 19

An increase in quantity supplied

Accepted Answer

An increase in quantity supplied means that the seller is willing and able to sell more at the same price. This results in a movement upward and to the right along a fixed supply curve, as the quantity supplied increases along the same curve.

Question 20

Equilibrium price must increase when demand

Accepted Answer

According to the law of demand, when demand increases, the equilibrium price also increases. When supply decreases, it puts upward pressure on the price. Therefore, when demand increases and supply decreases, the equilibrium price must increase. Additionally, when demand does not change but supply decreases, there is less supply for the same level of demand, resulting in an increase in price. Finally, if both demand and supply increase simultaneously, the effect on the equilibrium price is ambiguous and depends on the magnitude of the changes in both. Therefore, option B is the correct answer as it includes all the scenarios where the equilibrium price must increase.

Quiz 4: The Market Forces of Supply and Demand