Question 1

Exhibit 4-1
The following are the equations for the supply and demand curves in the market for weezils:
where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
 d is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.    -Refer to Exhibit 4-1.According to the data given, when the market is in Equilibrium, how many weezils are sold? A) 3 B) 5 C) 11 D) 14" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 4-1.According to the data given, when the market is in Equilibrium, how many weezils are sold?

Accepted Answer

A)  3
B)  5
C)  11
D)  14

Question 2

The demand curve for a good connects points describing how much consumers

Accepted Answer

A)  actually bought at different prices during a particular period.
B)  actually bought at different prices in different periods.
C)  would have been willing and able to buy at different prices during a particular period.
D)  would have been willing and able to buy at different prices in different periods.

Question 3

Governments of market-oriented economies never tamper with the price mechanism.

Accepted Answer

A) True 
 B)False

Question 4

If supply increases, the equilibrium price will rise and the equilibrium quantity will fall.

Accepted Answer

A) True 
 B)False

Question 5

George Washington's troops at Valley Forge were almost destroyed by price controls.

Accepted Answer

A) True 
 B)False

Question 6

Figure 4-4 1 to D2. B) D2 to D1. C) D3 to D2. D) D3 to D1." class="answers-bank-image d-inline" rel="preload" >
-Assume that Figure 4-4 shows demand for steak.An increase in income of buyers will change demand from

Accepted Answer

A)  D1 to D2.
B)  D2 to D1.
C)  D3 to D2.
D)  D3 to D1.

Question 7

A shift of the demand curve for a good occurs whenever new technologies make inputs used in producing that good available at lower prices.

Accepted Answer

A) True 
 B)False

Question 8

For more than a thousand years, the Catholic Church required its members to abstain from meat on Fridays.Catholics customarily ate fish on Friday.After 1966 abstinence from meat on Fridays was no longer required.Consequently, the

Accepted Answer

A)  demand curve for fish shifted to the right.
B)  demand curve for fish shifted to the left.
C)  demand for meat decreased.
D)  price of fish increased.

Question 9

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Accepted Answer

A) True 
 B)False

Question 10

The amount of a good sold in a market at a particular price cannot exceed the quantity

Accepted Answer

A)  demanded at that price.
B)  supplied at that price.
C)  sold when there is a price floor.
D)  sold when there is a price ceiling.

Question 11

If new manufacturers enter the computer industry, then, holding all other things constant,

Accepted Answer

A)  each "old" manufacturer must sell fewer computers than before.
B)  some "old" manufacturers must exit the industry.
C)  the equilibrium price of computers must rise.
D)  the equilibrium quantity demanded of computers must rise.

Question 12

Drawing the supply curve and the demand curve on the same graph helps show how price is determined.

Accepted Answer

A) True 
 B)False

Question 13

Figure 4-12 
-The price of gasoline has risen and the quantity sold has fallen.This was likely caused by

Accepted Answer

A)  a rise in the price of crude oil.
B)  a seasonal rise in the demand for gasoline.
C)  use of a new public transit system.
D)  the discovery of crude oil in New Jersey.

Question 14

Any factor that shifts the demand curve to the left but does not affect the supply curve will lower the equilibrium price and raise the equilibrium quantity.

Accepted Answer

A) True 
 B)False

Question 15

During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Accepted Answer

A)  a large increase in the availability of those items, ending shortages.
B)  a severe shortage of those essential commodities.
C)  an increase in the price of those items, thus alleviating shortages.
D)  new efforts to increase production of those commodities.
E)  a minor inconvenience as persons adjusted to the new law.

Question 16

An important assumption that is made when constructing a demand schedule is that

Accepted Answer

A)  only price and quantity matter in determining demand.
B)  people always want a certain amount of a product.
C)  demand is too important to be left to the economists.
D)  all other determinants of demand are held constant.
E)  demand has a positive slope.

Question 17

Figure 4-4 1 to D2. B) D2 to D1. C) D3 to D2. D) D3 to D1." class="answers-bank-image d-inline" rel="preload" >
-Assume that Figure 4-4 shows demand for orange juice.An increase in the price of soda will change demand from

Accepted Answer

A)  D1 to D2.
B)  D2 to D1.
C)  D3 to D2.
D)  D3 to D1.

Question 18

Figure 4-6 
-How much the quantity of a good traded changes after a shift of the supply curve depends on

Accepted Answer

A)  the size of the shift.
B)  the slope of the demand curve.
C)  whether the market is subject to price controls.
D)  All of the above are correct.

Question 19

If the demand for steak shifts to the right, the most likely explanation is that

Accepted Answer

A)  the price of cattle feed has fallen.
B)  consumer income has risen.
C)  the price of steak has fallen.
D)  cattle production has fallen.

Question 20

Figure 4-12 
-Studies at Cornell University revealed that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop.Resultant feed savings are estimated at $60 million a year.In the chicken market, the

Accepted Answer

A)  demand curve shifts to the right.
B)  supply curve shifts to the right.
C)  price will rise.
D)  quantity sold will fall.

Exam 4: Supply and Demand an Initial Look

Correct Answer
verified

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Correct Answer
verified

If new manufacturers enter the computer industry, then, holding all other things constant,

Correct Answer
verified

For more than a thousand years, the Catholic Church required its members to abstain from meat on Fridays.Catholics customarily ate fish on Friday.After 1966 abstinence from meat on Fridays was no longer required.Consequently, the

Correct Answer
verified

Figure 4-4 -Assume that Figure 4-4 shows demand for steak.An increase in income of buyers will change demand from

Correct Answer
verified

If supply increases, the equilibrium price will rise and the equilibrium quantity will fall.

Correct Answer
verified

Governments of market-oriented economies never tamper with the price mechanism.

Correct Answer
verified

A shift of the demand curve for a good occurs whenever new technologies make inputs used in producing that good available at lower prices.

Correct Answer
verified

Figure 4-12 -The price of gasoline has risen and the quantity sold has fallen.This was likely caused by

Correct Answer
verified

If the demand for steak shifts to the right, the most likely explanation is that

Correct Answer
verified

Drawing the supply curve and the demand curve on the same graph helps show how price is determined.

Correct Answer
verified

Figure 4-12 -Studies at Cornell University revealed that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop.Resultant feed savings are estimated at $60 million a year.In the chicken market, the

Correct Answer
verified

Any factor that shifts the demand curve to the left but does not affect the supply curve will lower the equilibrium price and raise the equilibrium quantity.

Correct Answer
verified

An important assumption that is made when constructing a demand schedule is that

Correct Answer
verified

Figure 4-4 -Assume that Figure 4-4 shows demand for orange juice.An increase in the price of soda will change demand from

Correct Answer
verified

The demand curve for a good connects points describing how much consumers

Correct Answer
verified

Figure 4-6 -How much the quantity of a good traded changes after a shift of the supply curve depends on

Correct Answer
verified

The amount of a good sold in a market at a particular price cannot exceed the quantity

Correct Answer
verified

During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Correct Answer
verified

George Washington's troops at Valley Forge were almost destroyed by price controls.

Correct Answer
verified

Exam 4: Supply and Demand an Initial Look

Correct AnswerverifiedShow Answer

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Correct AnswerverifiedShow Answer

If new manufacturers enter the computer industry, then, holding all other things constant,

Correct AnswerverifiedShow Answer

For more than a thousand years, the Catholic Church required its members to abstain from meat on Fridays.Catholics customarily ate fish on Friday.After 1966 abstinence from meat on Fridays was no longer required.Consequently, the

Correct AnswerverifiedShow Answer

Figure 4-4 -Assume that Figure 4-4 shows demand for steak.An increase in income of buyers will change demand from

Correct AnswerverifiedShow Answer

If supply increases, the equilibrium price will rise and the equilibrium quantity will fall.

Correct AnswerverifiedShow Answer

Governments of market-oriented economies never tamper with the price mechanism.

Correct AnswerverifiedShow Answer

A shift of the demand curve for a good occurs whenever new technologies make inputs used in producing that good available at lower prices.

Correct AnswerverifiedShow Answer

Figure 4-12 -The price of gasoline has risen and the quantity sold has fallen.This was likely caused by

Correct AnswerverifiedShow Answer

If the demand for steak shifts to the right, the most likely explanation is that

Correct AnswerverifiedShow Answer

Drawing the supply curve and the demand curve on the same graph helps show how price is determined.

Correct AnswerverifiedShow Answer

Figure 4-12 -Studies at Cornell University revealed that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop.Resultant feed savings are estimated at $60 million a year.In the chicken market, the

Correct AnswerverifiedShow Answer

Any factor that shifts the demand curve to the left but does not affect the supply curve will lower the equilibrium price and raise the equilibrium quantity.

Correct AnswerverifiedShow Answer

An important assumption that is made when constructing a demand schedule is that

Correct AnswerverifiedShow Answer

Figure 4-4 -Assume that Figure 4-4 shows demand for orange juice.An increase in the price of soda will change demand from

Correct AnswerverifiedShow Answer

The demand curve for a good connects points describing how much consumers

Correct AnswerverifiedShow Answer

Figure 4-6 -How much the quantity of a good traded changes after a shift of the supply curve depends on

Correct AnswerverifiedShow Answer

The amount of a good sold in a market at a particular price cannot exceed the quantity

Correct AnswerverifiedShow Answer

During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

Correct AnswerverifiedShow Answer

George Washington's troops at Valley Forge were almost destroyed by price controls.

Correct AnswerverifiedShow Answer

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