Question 1

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Panel (a) shows which of the following?
A)an increase in demand and an increase in quantity supplied
B)an increase in demand and an increase in supply
C)an increase in quantity demanded and an increase in quantity supplied
D)an increase in quantity demanded and an increase in supply

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 2

A movement along the supply curve might be caused by a change in
A)production technology.
B)input prices.
C)expectations about future prices.
D)the price of the good or service that is being supplied.

Accepted Answer

A movement along the supply curve is caused by a change in the price of the good or service that is being supplied. This is due to the fact that the quantity supplied of a good is directly related to its price, according to the law of supply. As the price of a good increases, producers are incentivized to produce more of it, and as the price decreases, producers are incentivized to produce less of it. Therefore, a change in price will cause a movement along the supply curve as producers adjust their quantity supplied in response to the price change. Changes in production technology, input prices, and expectations about future prices would cause a shift in the supply curve, rather than a movement along it.

Question 3

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Panel (d) shows which of the following?
A)a decrease in demand and a decrease in quantity supplied
B)a decrease in demand and a decrease in supply
C)a decrease in quantity demanded and a decrease in quantity supplied
D)a decrease in quantity demanded and a decrease in supply

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 4

An increase in the price of a good would
A)increase the supply of the good.
B)increase the amount purchased by buyers.
C)give producers an incentive to produce more.
D)decrease both the quantity demanded of the good and the quantity supplied of the good.

Accepted Answer

An increase in the price of a good would give producers an incentive to produce more as they can earn more profit from a higher price. This would increase the quantity supplied of the good. It is unlikely to increase the supply of the good itself, as that is determined by factors such as technology, resource availability, and the number of producers in the market. It may decrease the quantity demanded of the good, as some buyers may switch to substitute or alternative goods at a lower price, but it would not decrease the quantity supplied.

Question 5

An increase in the price of a good will
A)increase supply.
B)decrease supply.
C)increase quantity supplied.
D)decrease quantity supplied.

Accepted Answer

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

Question 6

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 7

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Panel (c) shows which of the following?
A)an increase in demand and an increase in quantity supplied
B)an increase in demand and an increase in supply
C)an increase in quantity demanded and an increase in quantity supplied
D)an increase in quantity demanded and an increase in supply

Accepted Answer

Panel (c) shows an increase in quantity demanded and an increase in supply. The demand curve shifts to the right, indicating an increase in quantity demanded, and the supply curve shifts to the right, indicating an increase in supply. The point of intersection between the new curves represents the new equilibrium point with both higher quantity and lower price than before.

Question 8

The quantity supplied of a good is the amount that
A)buyers are willing and able to purchase.
B)sellers are able to produce.
C)buyers and sellers agree will be brought to market.
D)sellers are willing and able to sell.

Accepted Answer

The quantity supplied of a good is determined by the willingness and ability of sellers to sell. It represents the amount of the good that producers are willing and able to sell at a given price.

Question 9

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity demanded?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 10

Which of the following would cause a movement along the supply curve for cupcakes?
A)an improvement in technology for commercial mixers
B)a decrease in the price of cupcakes
C)an increase in the price of cake flour
D)All of the above are correct.

Accepted Answer

A movement along the supply curve is caused by a change in price. Option A is an improvement in technology which would result in a shift of the supply curve to the right, while option C is an increase in the price of an ingredient which would shift the supply curve to the left. Only option B is a change in price that would cause a movement along the supply curve.

Question 11

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity supplied?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

Panel (b) shows a leftward shift of the supply curve, indicating a decrease in quantity supplied at all possible price levels.

Question 12

When the price of a good or service changes,
A)the demand curve shifts in the opposite direction.
B)the supply curve shifts in the opposite direction.
C)the supply curve shifts in the same direction.
D)there is a movement along a given supply curve.

Accepted Answer

When the price of a good or service changes, it causes a movement along the given supply curve, known as a change in quantity supplied or demanded. The direction of the movement depends on whether it is a change in supply or demand. A shift in the supply or demand curve occurs due to factors other than price, such as changes in consumer preferences or technology.

Question 13

Holding the nonprice determinants of supply constant, a change in price would
A)result in either a decrease in supply or an increase in supply.
B)result in a movement along a stationary supply curve.
C)result in a shift of demand.
D)have no effect on the quantity supplied.

Accepted Answer

A change in price would result in a movement along a stationary supply curve, known as a change in quantity supplied. The nonprice determinants of supply, such as technology and input prices, would need to change for there to be a shift in the supply curve.

Question 14

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 15

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Panel (b) shows which of the following?
A)a decrease in demand and a decrease in quantity supplied
B)a decrease in demand and a decrease in supply
C)a decrease in quantity demanded and a decrease in quantity supplied
D)a decrease in quantity demanded and a decrease in supply

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 16

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 17

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

The answer of Figure 4-27
Panel (a)
Panel (b)   Panel...

Question 18

Figure 4-27
Panel (a)
Panel (b)   Panel (c)
Panel (d)  
-Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Accepted Answer

Panel (b) shows a decrease in demand and a decrease in price for winter coats as we move from winter to spring. This indicates that the market for winter coats is shifting as the season changes.

Question 19

If the price of a good is low,
A)firms would increase profit by increasing output.
B)the quantity supplied of the good could be zero.
C)the supply curve for the good will shift to the left.
D)firms can and should raise the price of the product.

Accepted Answer

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

Question 20

A decrease in the price of a good will
A)increase supply.
B)decrease supply.
C)increase quantity supplied.
D)decrease quantity supplied.

Accepted Answer

The answer of A decrease in the price of a...

Quiz 4: The Market Forces of Supply and Demand

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (a) shows which of the following?

A movement along the supply curve might be caused by a change in

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (d) shows which of the following?

An increase in the price of a good would

An increase in the price of a good will

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (c) shows which of the following?

The quantity supplied of a good is the amount that

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity demanded?

Which of the following would cause a movement along the supply curve for cupcakes?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates a decrease in quantity supplied?

When the price of a good or service changes,

Holding the nonprice determinants of supply constant, a change in price would

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (b) shows which of the following?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity supplied?

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

If the price of a good is low,

A decrease in the price of a good will