Question 1

-The above figure shows the market for apples. If a consumer group convinces the government to set a maximum price of $2 per pound, then

Accepted Answer

A) 300 pounds of apples will be sold at $2. 
B) no apples will be supplied. 
C) no apples will be demanded. 
D) there will be a shortage of 100 pounds of apples. 
A) 300 pounds of apples will be sold at $2. 
B) no apples will be supplied. 
C) no apples will be demanded. 
D) there will be a shortage of 100 pounds of apples.

Question 2

Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a

Accepted Answer

A) vertical line where Q = 10. 
B) vertical line where Q = 100. 
C) vertical line where Q = 1000. 
D) horizontal line where Q = 1000. 
A) vertical line where Q = 10. 
B) vertical line where Q = 100. 
C) vertical line where Q = 1000. 
D) horizontal line where Q = 1000.

Question 3

If price is initially above the equilibrium level,

Accepted Answer

A) the supply curve will shift rightward. 
B) the supply curve will shift leftward. 
C) excess supply exists. 
D) all firms can sell as much as they want. 
A) the supply curve will shift rightward. 
B) the supply curve will shift leftward. 
C) excess supply exists. 
D) all firms can sell as much as they want.

Question 4

The supply curve

Accepted Answer

A) represents the quantity supplied at any given price. 
B) represents the quantity actually sold at any given price. 
C) is the opposite of the demand curve. 
D) always intersects the demand curve. 
A) represents the quantity supplied at any given price. 
B) represents the quantity actually sold at any given price. 
C) is the opposite of the demand curve. 
D) always intersects the demand curve.

Question 5

-The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?

Accepted Answer

A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D 
A) Graph A 
B) Graph B 
C) Graph C 
D) Graph D

Question 6

If the demand for CD players decreases and the supply of CD players decreases, then

Accepted Answer

A) it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous. 
B) it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous. 
C) it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous. 
D) it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous. 
A) it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous. 
B) it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous. 
C) it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous. 
D) it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous.

Question 7

Government actions can cause a

Accepted Answer

A) shift in the supply curve. 
B) shift in the demand curve. 
C) reaction from firms in other countries. 
D) All of the above. 
A) shift in the supply curve. 
B) shift in the demand curve. 
C) reaction from firms in other countries. 
D) All of the above.

Question 8

It is appropriate to use the supply-and-demand model in which of the following markets?

Accepted Answer

A) beer market 
B) car market 
C) wheat market 
D) market for breakfast cereal 
A) beer market 
B) car market 
C) wheat market 
D) market for breakfast cereal

Question 9

-The above figure shows a graph of the market for pizzas in a large town. If the price falls from $10 to $7 per pizza, the quantity of pizzas demanded will

Accepted Answer

A) increase by 20. 
B) decrease by 30. 
C) increase by 30. 
D) decrease by 10. 
A) increase by 20. 
B) decrease by 30. 
C) increase by 30. 
D) decrease by 10.

-The above figure shows the market for apples. If a consumer group convinces the government to set a maximum price of $2 per pound, then

Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a

If price is initially above the equilibrium level,

The supply curve

-The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?

If the demand for CD players decreases and the supply of CD players decreases, then

Government actions can cause a

It is appropriate to use the supply-and-demand model in which of the following markets?

-The above figure shows a graph of the market for pizzas in a large town. If the price falls from $10 to $7 per pizza, the quantity of pizzas demanded will

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

-The above figure shows the market for apples. If a consumer group convinces the government to set a maximum price of $2 per pound, then

Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a

If price is initially above the equilibrium level,

The supply curve

-The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?

If the demand for CD players decreases and the supply of CD players decreases, then

Government actions can cause a

It is appropriate to use the supply-and-demand model in which of the following markets?

-The above figure shows a graph of the market for pizzas in a large town. If the price falls from $10 to $7 per pizza, the quantity of pizzas demanded will

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