If a competitive market operates perfectly, it relies on __________.

Question options:

  

the   number of people buying goods

 

the laws of supply and demand

 

how   many products can be produced for sale

 

how   much people are willing to pay for the products

 

Question 2

5 / 5 points

   

    

 

Refer to Figure 4.6, which shows David’s and Celeste’s individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, what is the market quantity supplied at a price of

$30

?

Question options:
  

200

 

250

 

300

 

350

 

Question 3

5 / 5 points

       

The big tradeoff is the tradeoff between __________.

Question options:
  

quantity   demanded and quantity supplied

 

price   and quantity demanded

 

efficiency and equity

 

total   surplus and deadweight loss

 

Question 4

5 / 5 points
       

A change in the quantity demanded of a product is the result of a change in __________.

Question options:
  

the price of the product

 

the   price of related goods

 

consumer   income

 

the   cost of producing the product

 

Question 5

5 / 5 points
       

What happens if the price of a product is below the equilibrium price?

Question options:
  

The   buyers will stop purchasing a "cheap" product.

 

The   producer will lower the price to sell more product.

 

There will be an excess demand for the product.

 

There   will be a surplus of the product.

 

Question 6

5 / 5 points
       

If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that __________.

Question options:
  

demand   increased

 

demand   decreased

 

supply   increased

 

supply decreased

 

Question 7

5 / 5 points
       

A supply curve is defined as the relationship between __________.

Question options:
  

the   price of a good and the quantity that consumers are willing to buy

 

the price of a good and the quantity that producers are   willing to sell

 

the   income of consumers and the quantity of a product that consumers are willing   to buy

 

the   income of consumers and the quantity of a product that producers are willing   to sell

 

Question 8

5 / 5 points
       
 

Refer to Figure 4.6, which shows David’s and Celeste’s individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 50, the price must be __________.

Question options:
  
$0
 

$10

 

between $10 and $20

 
$30
 

Question 9

5 / 5 points
       

The market demand curve __________.

Question options:
  

shows the relationship between the price of a good and the   quantity that all consumers together arewilling   to buy

 

is   drawn assuming that variables such as income and tastes are variable

 

is   drawn assuming that the number of consumers is variable

 

is   drawn assuming that the selling price is fixed

 

Question 10

5 / 5 points
       

When consumers are willing to buy more than producers are willing to sell, __________.

Question options:
  

there   is excess supply of the product in the market

 

there is excess demand for the product in the market

 

the   market is in equilibrium

 

the   demand curve will shift until the quantity supplied equals the quantity   demanded

 

Question 11

5 / 5 points
       

When there is a change in the quantity demanded it means that __________.

Question options:
  

the   hours the customer can buy products each day have increased

 

the   number of products in inventory have increased

 

the quantity a consumer is willing to buy changes when the   price changes

 

the   selling price of the products has not changed

 

Question 12

5 / 5 points
       

Quantity of Frozen Latte-On-A-Stick Supplied

   

Price

Flo’s   Supply

Rita’s   Supply

 
1
0
0
 
2
0
3
 
3
4
6
 
4
9
9
 
5
15
12

Table 4.1

 Refer to Table 4.1, which shows Flo’s and Rita’s individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $2?

Question options:
  
0
 
2
 
3
 
5
 

Question 13

5 / 5 points
       
 

Refer to Figure 4.1, which shows Molly’s and Ryan’s individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3?

Question options:
  
6
 
9
 
15
 
20
 

Question 14

5 / 5 points
       

When the price of apples goes up, __________.

Question options:
  

the   demand for apples will decrease, ceteris paribus

 

the   demand for apples will increase, ceteris paribus

 

the quantity of apples demanded will decrease, ceteris paribus

 

the   quantity of apples demanded will increase, ceteris paribus

 

Question 15

5 / 5 points
       

A demand curve is defined as the relationship between __________.

Question options:
  

the price of a good and the quantity of that good that   consumers are willing to buy

 

the   price of a good and the quantity of that good that producers are willing to   sell

 

the   income of consumers and the quantity of a good that consumers are willing to   buy

 

the   income of consumers and the quantity of a good that producers are willing to   sell

 

Question 16

5 / 5 points
       
 

Figure 4.2 illustrates the supply and demand for T-shirts. If the actual price of T-shirts is $7, there is an __________.

Question options:
  

excess demand of 8 T-shirts

 

excess   supply of 8 T-shirts

 

excess   demand of 10 T-shirts

 

excess   supply of 10 T-shirts

 

Question 17

5 / 5 points
       

Suppose that the quantity of cars supplied exceeds the quantity of cars demanded. We would expect that __________.

Question options:
  

the   price of cars will increase

 

the price of cars will decrease

 

the   supply will increase (supply will shift to the right. to meet the demand

 

the   demand will decrease (demand will shift to the left. to meet the supply

 

Question 18

5 / 5 points
       

If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?

Question options:
  

The   company would not change its manufacturing.

 

More   people would be needed to produce the product.

 

It   would decrease the supply.

 

It would increase the supply.

 

Question 19

0 / 5 points

       

When demand increases and the demand curve shifts to the right, equilibrium price __________ and equilibrium quantity __________.

Question options:
  

increases; increases (Incorrect)

 

increases;   decreases

 

decreases;   increases

 

decreases;   decreases

 

Question 20

5 / 5 points
       

A change in quantity supplied of a product is the result of a change in __________.

Question options:
  
consumer   income
 

the   state of production technology

 
the   cost of producing the product
 
the price of the product