The Market Forces of Supply and Demand 815
67.
Refer to Figure 4-3. If these are the only two consumers in the market, then the market
quantity demanded at a
price of $15 is
a.
0 units.
b.
10 units.
c.
15 units.
d.
25 units.
68.
Refer to Figure 4-3. If these are the only two consumers in the market, then the market
quantity demanded at a
price of $10 is
a.
0 units.
b.
5 units.
c.
8.33 units.
d.
25 units.
69.
Refer to Figure 4-3. If these are the only two consumers in the market, then the market
quantity demanded at a
price of $6 is
a.
12 units.
b.
14 units.
c.
19 units.
d.
21 units.
Figure 4-4
Yasmine Mercedes
70.
Refer to Figure 4-4. If Yasmine and Mercedes are the only two consumers in the market, then
the market
quantity demanded at a price of $12 is
a.
3 units.
b.
6 units.
c.
9 units.
d.
12 units.
71.
Refer to Figure 4-4. Suppose Yasmine and Mercedes are the only two consumers in the
market. When the
market price falls from $12 to $6, the quantity demanded increases by
a.
6 units.
b.
9 units.
c.
12 units.
d.
15 units.
72.
Refer to Figure 4-4. Which of the following statements is correct?
a.
If the price is $6, the market quantity demanded is 15 units.
b.
If the price is $9, the market quantity demanded is 24 units.
c.
If the price is $12, the market quantity demanded is 9 units.
d.
If the price is $15, the market quantity demanded is 39 units.
73.
Suppose John and Wayne are the only two demanders of cowboy movies. Each month, John buys
six cowboy
movies when the price is $10 each, and he buys four cowboy movies when the price
is $15 each. Each month,
Wayne buys four cowboy movies when the price is $10 each, and he
buys two cowboy movies when the price is $15 each. Which of the following points is on the
market demand curve?
a.
quantity demanded = 2; price = $15
b.
quantity demanded = 4; price = $25
c.
quantity demanded = 10; price = $10
d.
quantity demanded = 16; price = $25
74.
Suppose Spencer and Kate are the only two demanders of lemonade. Each month, Spencer buys
six glasses of
lemonade when the price is $1.00 per glass, and he buys four glasses when the
price is $1.50 per glass. Each
month, Kate buys four glasses of lemonade when the price is $1.00
per glass, and she buys two glasses when the
price is $1.50 per glass. Which of the following
points is on the market demand curve?
Point
Price
Quantity
A
$1.00
4
B
$1.00
10
C
$1.50
2
D
$1.50
6
a.
B only
b.
B and D only
c.
A and C only
d.
D only
75.
An increase in demand is represented by a
a.
movement downward and to the right along a demand curve.
b.
movement upward and to the left along a demand curve.
c.
rightward shift of a demand curve.
d.
leftward shift of a demand curve.
76.
A decrease in demand is represented by a
a.
movement downward and to the right along a demand curve.
b.
movement upward and to the left along a demand curve.
c.
rightward shift of a demand curve.
d.
leftward shift of a demand curve.
77.
A leftward shift of a demand curve is called a(n)
a.
increase in demand.
b.
decrease in demand.
c.
decrease in quantity demanded.
d.
increase in quantity demanded.
78.
A rightward shift of a demand curve is called a(n)
a.
increase in demand.
b.
decrease in demand.
c.
decrease in quantity demanded.
d.
increase in quantity demanded.
79.
If buyers today become more willing and able than before to purchase larger quantities of stand
up paddle boards
(SUPs) at each price of SUPs, then
a.
we will observe a movement downward and to the right along the demand curve for SUPs.
b.
we will observe a movement upward and to the left along the demand curve for SUPs.
c.
the demand curve for SUPs will shift to the right.
d.
the demand curve for SUPs will shift to the left.
80.
When the price of peaches changes, the demand curve for peaches
a.
shifts because the price of peaches is measured on the vertical axis of the graph.
b.
shifts because the quantity demanded of peaches is measured on the horizontal axis of the
graph.
c.
does not shift because the price of peaches is measured on the vertical axis of the graph.
d.
does not shift because the price of peaches is measured on the horizontal axis of the graph.
81.
Which of the following changes would not shift the demand curve for a good or service?
a.
a change in income
b.
a change in the price of the good or service
c.
a change in expectations about the future price of the good or service
d.
a change in the price of a related good or service
82.
Which of the following would not shift the demand curve for mp3 players?
a.
a decrease in the price of mp3 players
b.
a fad that makes mp3 players more popular among 12-25 year olds
c.
an increase in the price of digital music downloads, a complement for mp3 players
d.
a decrease in the price of satellite radio, a substitute for mp3 players
83.
Which of the following events would cause a movement upward and to the left along the demand
curve for olives?
a.
The number of people who purchase olives decreases.
b.
Consumer income decreases, and olives are a normal good.
c.
The price of pickles decreases, and pickles are a substitute for olives.
d.
The price of olives rises.
84.
A movement along the demand curve might be caused by a change in
a.
income.
b.
the prices of substitutes or complements.
c.
expectations about future prices.
d.
the price of the good or service that is being demanded.
85.
Holding the nonprice determinants of demand constant, a change in price would
a.
result in either a decrease in demand or an increase in demand.
b.
result in a movement along a stationary demand curve.
c.
result in a shift of supply.
d.
have no effect on the quantity demanded.
86.
The demand curve for coffee shifts
a.
only when income changes.
b.
when a determinant of the demand for coffee other than the price of coffee changes.
c.
when the price of coffee changes.
d.
Both b and c are correct.
87.
Which of the following is not a determinant of the demand for a particular good?
a.
the prices of related goods
b.
income
c.
tastes
d.
the prices of the inputs used to produce the good
88.
Each of the following is a determinant of demand except
a.
tastes.
b.
production technology.
c.
expectations.
d.
the prices of related goods.
89.
Which of the following is not a determinant of demand?
a.
the price of a resource that is used to produce the good
b.
the price of a complementary good
c.
the price of the good next month
d.
the price of a substitute good
90.
If the demand for a good falls when income falls, then the good is called a(n)
a.
normal good.
b.
regular good.
c.
luxury good.
d.
inferior good.
91.
If a good is normal, then an increase in income will result in a(n)
a.
increase in the demand for the good.
b.
decrease in the demand for the good.
c.
movement down and to the right along the demand curve for the good.
d.
movement up and to the left along the demand curve for the good.
92.
If Max experiences a decrease in his income, then we would expect Max’s demand for
a.
each good he purchases to remain unchanged.
b.
normal goods to decrease.
c.
luxury goods to increase.
d.
inferior goods to decrease.
93.
You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you
consider iTunes
music downloads to be a(n)
a.
luxury good.
b.
inferior good.
c.
normal good.
d.
complementary good.
94.
Pizza is a normal good if the demand
a.
for pizza rises when income rises.
b.
for pizza rises when the price of pizza falls.
c.
curve for pizza slopes upward.
d.
curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos
are substitutes.
95.
Suppose that when income rises, the demand curve for doctor’s visits shifts to the right. In this
case, we know doctor’s visits are
a.
inferior goods.
b.
normal goods.
c.
perfectly competitive goods.
d.
durable goods.
96.
Which of the following would shift the demand curve for gasoline to the right?
a.
a decrease in the price of gasoline
b.
an increase in consumer income, assuming gasoline is a normal good
c.
an increase in the price of cars, a complement for gasoline
d.
a decrease in the expected future price of gasoline
97.
If a decrease in income increases the demand for a good, then the good is a(n)
a.
substitute good.
b.
complementary good.
c.
normal good.
d.
inferior good.
The Market Forces of Supply and Demand 831
98.
If a increase in income decreases the demand for a good, then the good is a(n)
a.
substitute good.
b.
complementary good.
c.
normal good.
d.
inferior good.
99.
If a good is inferior, then an increase in income will result in a(n)
a.
increase in the demand for the good.
b.
decrease in the demand for the good.
c.
movement down and to the right along the demand curve for the good.
d.
movement up and to the left along the demand curve for the good.
100.
Kara receives a promotion at work, which increases her income. We would expect Kara’s
demand for
a.
each good she purchases to remain unchanged.
b.
normal goods to decrease.
c.
substitute goods to increase.
d.
inferior goods to decrease.
101.
You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)
a.
luxury good.
b.
inferior good.
c.
normal good.
d.
complementary good.
102.
Currently you purchase ten frozen pizza per month. You will graduate from college in December,
and you will start
a new job in January. You have no plans to purchase frozen pizzas in January.
For you, frozen pizzas are a(n)
a.
substitute good.
b.
normal good.
c.
inferior good.
d.
complementary good.
103.
Soup is an inferior good if the demand
a.
for soup falls when the price of a substitute for soup rises.
b.
for soup rises when the price of soup falls.
c.
curve for soup slopes upward.
d.
for soup falls when income rises.
104.
Suppose that Amanda receives a pay increase. We would expect
a.
to observe Amanda moving down and to the right along her given demand curve.
b.
Amanda’s demand for inferior goods to decrease.
c.
Amanda’s demand for each of two goods that are complements to increase.
d.
Amanda’s demand for normal goods to decrease.
105.
If macaroni and cheese is an inferior good, then an increase in
a.
the price will cause the demand curve for macaroni and cheese to shift to the left.
b.
the price will cause the demand curve for macaroni and cheese to shift to the right.
c.
a consumer’s income will cause the demand curve for macaroni and cheese to shift to the
left.
d.
a consumer’s income will cause the demand curve for macaroni and cheese to shift to the
right.