CHAPTER 4

The law of supply states that, other things equal, when the price of a
good increases-
The quantity supplied of the good rises

An increase in product price will cause:

(a) quantity supplied to decrease.
(b) quantity demanded to decrease.
(c) the supply curve to shift to the left.
(d) quantity demanded to increase.

A monopoly is a market with one

- choices buyer, and that buyer is a price taker.
- seller, and that seller is a price taker.
- seller, and that seller sets the price.
- buyer, and that buyer sets the price.

A group of buyers and sellers of a particular good or service is called a(n)

- market

If a seller in a competitive market chooses to charge more than the going price,
then
A. the sellers' profits must increase.
B. other sellers would also raise their prices.
C. buyers will make purchases from other sellers.
D. the owners of the raw materials used in production would raise the
prices for the raw materials.

An increase in product price will cause:

- choices the supply curve to shift to the left.
- quantity demanded to decrease.
- quantity demanded to increase.
- quantity supplied to decrease.
The law of supply indicates that, other things equal:
- producers will offer more of a product at high prices than at low prices.

the supply of a good or service is determined by

- those while sell the good or service

If a seller in a competitive market chooses to charge more than the going

price, then
a.buyers would tend to buy more from this seller.
b. the owners of the raw materials used in production would raise the
prices for the raw materials.
c. other sellers would also raise their price.
d. buyers will tend to make purchases from other sellers.

Which of the following would not shift the demand curve for beef?
A. a widely publicized study that indicates beef increases one's cholesterol
B. a reduction in the price of cattle feed
C. an effective advertising campaign by pork producers
D. a change in the incomes of beef consumers

If X is a normal good, a rise in money income will shift the:

demand curve for X to the right

a monopoly is a market with one

- group of answer choices buyer, and that buyer is a price taker.
- seller, and that seller is a price taker.
- seller, and that seller sets the price.
- buyer, and that buyer sets the price.

Which of the following statements is correct?

Buyers determine both demand and supply.
Sellers determine both demand and supply.
Buyers determine demand, and sellers determine supply.
Buyers determine supply, and sellers determine demand.

An increase in the price of a good will

have no effect on demand.

increase quantity demanded.
None of the above is correct.
decrease quantity demanded.

In a market economy, supply and demand determine

the quantity of each good produced but not the price at which it is sold.
both the quantity of each good produced and the price at which it is sold.
the price at which each good is sold but not the quantity of each good produced.
neither the quantity of each good produced nor the price at which it is sold.

A table that shows the relationship between the price of a good and the
quantity demanded of that good is called a
demand schedule.
buyer schedule.
demand curve.
price-quantity schedule.

The law of supply states that, other things equal, when the price of a good

falls, the quantity supplied of the good rises.

falls, the supply of the good rises.
rises, the quantity supplied of the good rises.
rises, the supply of the good falls.