Question 1

As the price of a good increases, the change in the quantity demanded can be shown by

Accepted Answer

A) shifting the demand curve leftward. 
B) shifting the demand curve rightward. 
C) moving down along the same demand curve. 
D) moving up along the same demand curve. 
A) shifting the demand curve leftward. 
B) shifting the demand curve rightward. 
C) moving down along the same demand curve. 
D) moving up along the same demand curve.

Question 2

-The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas. What will the price of pizza be as a result of this quota?

Accepted Answer

A) $2 
B) $7 
C) $8 
D) $10 
A) $2 
B) $7 
C) $8 
D) $10

Question 3

Equilibrium is defined as a situation in which

Accepted Answer

A) neither buyers nor sellers want to change their behavior. 
B) no government regulations exist. 
C) demand curves are perfectly horizontal. 
D) suppliers will supply any amount that buyers wish to buy. 
A) neither buyers nor sellers want to change their behavior. 
B) no government regulations exist. 
C) demand curves are perfectly horizontal. 
D) suppliers will supply any amount that buyers wish to buy.

Question 4

Agricultural price supports are

Accepted Answer

A) price ceilings. 
B) price floors. 
C) quantity quotas. 
D) taxes. 
A) price ceilings. 
B) price floors. 
C) quantity quotas. 
D) taxes.

Question 5

Once an equilibrium is achieved, it can persist indefinitely because

Accepted Answer

A) shocks that shift the demand curve or the supply curve cannot occur. 
B) shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C) the government never intervenes in markets at equilibrium. 
D) in the absence of supply/demand shocks no one applies pressure to change the price. 
A) shocks that shift the demand curve or the supply curve cannot occur. 
B) shocks to the demand curve are always exactly offset by shocks to the supply curve. 
C) the government never intervenes in markets at equilibrium. 
D) in the absence of supply/demand shocks no one applies pressure to change the price.

Question 6

A price floor that is set above the equilibrium price

Accepted Answer

A) causes suppliers to lose money. 
B) creates a shortage. 
C) is non-binding. 
D) creates a surplus. 
A) causes suppliers to lose money. 
B) creates a shortage. 
C) is non-binding. 
D) creates a surplus.

Question 7

When an imported good has restrictions placed on it that limits the amount that can be imported and as a result the price of the good increases, the demand curve for that good will

Accepted Answer

A) shift rightward. 
B) shift leftward. 
C) become steeper. 
D) be unaffected. 
A) shift rightward. 
B) shift leftward. 
C) become steeper. 
D) be unaffected.

Question 8

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium price?

Accepted Answer

A) 14 
B) 42 
C) 12.67 
D) 38 
A) 14 
B) 42 
C) 12.67 
D) 38

Question 9

At equilibrium, quantity sold equals the quantity bought. This implies that

Accepted Answer

A) to sell more, producers require more in payment than consumers are willing to pay. 
B) government regulation is necessary. 
C) to sell less would require a lower price but would yield greater profit. 
D) those who don't buy have been treated unfairly. 
A) to sell more, producers require more in payment than consumers are willing to pay. 
B) government regulation is necessary. 
C) to sell less would require a lower price but would yield greater profit. 
D) those who don't buy have been treated unfairly.

Question 10

A leftward shift of the demand curve in a market with an upward-sloping supply curve will lead to a(n)

Accepted Answer

A) decrease in equilibrium price. 
B) excess supply at the old equilibrium price. 
C) decrease in quantity supplied. 
D) All of the above. 
A) decrease in equilibrium price. 
B) excess supply at the old equilibrium price. 
C) decrease in quantity supplied. 
D) All of the above.

Question 11

The supply curve is influenced by

Accepted Answer

A) the income of consumers. 
B) the number of customers in the market. 
C) the prices of the inputs required to produce the product. 
D) the price of the product being produced. 
A) the income of consumers. 
B) the number of customers in the market. 
C) the prices of the inputs required to produce the product. 
D) the price of the product being produced.

Question 12

If a good is not produced, then there is no demand for it.

Accepted Answer

A) True 
 B)False

Question 13

A leftward shift of the supply curve in a market with a downward-sloping demand curve will lead to a(n)

Accepted Answer

A) increase in equilibrium price. 
B) excess demand at the old equilibrium price. 
C) decrease in quantity demanded. 
D) All of the above. 
A) increase in equilibrium price. 
B) excess demand at the old equilibrium price. 
C) decrease in quantity demanded. 
D) All of the above.

Question 14

According to the Law of Demand, the demand curve for a good will

Accepted Answer

A) shift leftward when the price of the good increases. 
B) shift rightward when the price of the good increases. 
C) slope downward. 
D) slope upward. 
A) shift leftward when the price of the good increases. 
B) shift rightward when the price of the good increases. 
C) slope downward. 
D) slope upward.

Question 15

An increase in the price of pork will lead to

Accepted Answer

A) a movement up along the demand curve. 
B) a movement down along the demand curve. 
C) a rightward shift of the demand curve. 
D) a leftward shift of the demand curve. 
A) a movement up along the demand curve. 
B) a movement down along the demand curve. 
C) a rightward shift of the demand curve. 
D) a leftward shift of the demand curve.

Question 16

If the price is $5 and the quantity demanded is 100 units, then at a price of $10, the quantity demanded will be

Accepted Answer

A) less than or equal to 100 units. 
B) greater than or equal to 100 units. 
C) greater than quantity supplied. 
D) equal to 100 units. 
A) less than or equal to 100 units. 
B) greater than or equal to 100 units. 
C) greater than quantity supplied. 
D) equal to 100 units.

Question 17

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

Accepted Answer

A) The supply of plastic will increase. 
B) The supply of plastic will decrease. 
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels. 
D) The supply of plastic will stay the same because of the profit motives of plastic producers. 
A) The supply of plastic will increase. 
B) The supply of plastic will decrease. 
C) The supply of plastic will stay the same because the government requires plastic producers to meet statutory minimum production levels. 
D) The supply of plastic will stay the same because of the profit motives of plastic producers.

Question 18

As people have become more health-conscious and decided to eat food that is better for them,

Accepted Answer

A) the demand curve for scooters has shifted to the right. 
B) the demand curve for cupcakes has shifted to the right. 
C) the demand curve for oranges and apples has shifted to the right. 
D) None of the above. 
A) the demand curve for scooters has shifted to the right. 
B) the demand curve for cupcakes has shifted to the right. 
C) the demand curve for oranges and apples has shifted to the right. 
D) None of the above.

Question 19

An increase in consumer incomes will lead to

Accepted Answer

A) a rightward shift of the demand curve for plasma TVs. 
B) a movement upward along the demand curve for plasma TVs. 
C) a rightward shift of the supply curve for plasma TVs. 
D) no change of the demand curve for plasma TVs. 
A) a rightward shift of the demand curve for plasma TVs. 
B) a movement upward along the demand curve for plasma TVs. 
C) a rightward shift of the supply curve for plasma TVs. 
D) no change of the demand curve for plasma TVs.

Question 20

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium quantity?

Accepted Answer

A) 440 
B) 146.6 
C) 360 
D) 120 
A) 440 
B) 146.6 
C) 360 
D) 120

As the price of a good increases, the change in the quantity demanded can be shown by

-The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas. What will the price of pizza be as a result of this quota?

Equilibrium is defined as a situation in which

Agricultural price supports are

Once an equilibrium is achieved, it can persist indefinitely because

A price floor that is set above the equilibrium price

When an imported good has restrictions placed on it that limits the amount that can be imported and as a result the price of the good increases, the demand curve for that good will

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium price?

At equilibrium, quantity sold equals the quantity bought. This implies that

A leftward shift of the demand curve in a market with an upward-sloping supply curve will lead to a(n)

The supply curve is influenced by

If a good is not produced, then there is no demand for it.

A leftward shift of the supply curve in a market with a downward-sloping demand curve will lead to a(n)

According to the Law of Demand, the demand curve for a good will

An increase in the price of pork will lead to

If the price is $5 and the quantity demanded is 100 units, then at a price of $10, the quantity demanded will be

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

As people have become more health-conscious and decided to eat food that is better for them,

An increase in consumer incomes will lead to

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium quantity?

Introduction

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 2: Supply and Demand

As the price of a good increases, the change in the quantity demanded can be shown by

-The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas. What will the price of pizza be as a result of this quota?

Equilibrium is defined as a situation in which

Agricultural price supports are

Once an equilibrium is achieved, it can persist indefinitely because

A price floor that is set above the equilibrium price

When an imported good has restrictions placed on it that limits the amount that can be imported and as a result the price of the good increases, the demand curve for that good will

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium price?

At equilibrium, quantity sold equals the quantity bought. This implies that

A leftward shift of the demand curve in a market with an upward-sloping supply curve will lead to a(n)

The supply curve is influenced by

If a good is not produced, then there is no demand for it.

A leftward shift of the supply curve in a market with a downward-sloping demand curve will lead to a(n)

According to the Law of Demand, the demand curve for a good will

An increase in the price of pork will lead to

If the price is $5 and the quantity demanded is 100 units, then at a price of $10, the quantity demanded will be

The price of crude oil rose to over $100 per barrel in early 2013. What would we expect to see happen to the supply of plastic, which is produced using crude oil?

As people have become more health-conscious and decided to eat food that is better for them,

An increase in consumer incomes will lead to

If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium quantity?

Introduction

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters