Question 1

​The information conveyed by changes in market prices is especially important in financial markets because

Accepted Answer

A) ​It forces individual investors to reveal their information about the prospects of a security 
B) It assesses business decisions 
C) It helps firms forecast the future demand for products 
D) ​All of the above 
A) ​It forces individual investors to reveal their information about the prospects of a security 
B) It assesses business decisions 
C) It helps firms forecast the future demand for products 
D) ​All of the above

Question 2

​Which of the following statements is true?

Accepted Answer

A) ​A company can manipulate uncontrollable factors to increase the demand for its product 
B) A company can manipulate uncontrollable factors to increase the supply of its product 
C) A company cannot manipulate uncontrollable factors to increase the demand for its product 
D) ​A company cannot manipulate controllable factors to increase the demand for its product 
A) ​A company can manipulate uncontrollable factors to increase the demand for its product 
B) A company can manipulate uncontrollable factors to increase the supply of its product 
C) A company cannot manipulate uncontrollable factors to increase the demand for its product 
D) ​A company cannot manipulate controllable factors to increase the demand for its product

Question 3

​The law of supply states that,holding other factors constant,as price increases

Accepted Answer

A) ​Quantity supplied increases 
B) Quantity supplied decreases 
C) Quantity demanded increases 
D) ​Quantity demanded decreases 
A) ​Quantity supplied increases 
B) Quantity supplied decreases 
C) Quantity demanded increases 
D) ​Quantity demanded decreases

Question 4

​An increase in price could occur due to a(n)

Accepted Answer

A) ​Increase in demand and no change in supply 
B) Decrease in supply and no change in demand 
C) An increase in demand and decrease in supply 
D) ​All of the above 
A) ​Increase in demand and no change in supply 
B) Decrease in supply and no change in demand 
C) An increase in demand and decrease in supply 
D) ​All of the above

Question 5

​A recent medical study reports new benefits of cycling.Simultaneously,the price of the parts needed to make bikes falls. The demand curve would _________ and the supply curve would__________

Accepted Answer

A) ​Shift to the right,shift to the left 
B) shift to the left,shift to the right 
C) shift to the left,shift to the left 
D) ​shift to the right,shift to the right 
A) ​Shift to the right,shift to the left 
B) shift to the left,shift to the right 
C) shift to the left,shift to the left 
D) ​shift to the right,shift to the right

Question 6

​Which of the following factors would shift the supply curve for ice cream to the right?

Accepted Answer

A) ​a new cooling technology emerges 
B) the price per unit increases 
C) the number of producers in the market for ice cream increase 
D) ​Both A&C 
A) ​a new cooling technology emerges 
B) the price per unit increases 
C) the number of producers in the market for ice cream increase 
D) ​Both A&C

Question 7

Suppose there are 11 buyers and 11 sellers,each willing to buy or sell one unit of a good,with values {$14,$13,$12,$11,$10,$9,$8,$7,$6,$5,$4,}.Assume no transaction costs and a competitive market.At the optimal bid-ask spread,how many transactions would the market maker undertake in this market

Accepted Answer

A) ​two transacttions 
B) three transactions 
C) four transactions 
D) ​five transactions 
A) ​two transacttions 
B) three transactions 
C) four transactions 
D) ​five transactions

Question 8

Firm X owns both tea and coffee plantations.It sells directly to the public.If the firm wants to increase the sales for the coffee,assuming that tea and coffee are substitutes,which of these strategies can it employ?​

Accepted Answer

A) ​Increase the price for the tea 
B) Offer free expedited shipping on the coffee 
C) Advertise the tea more heavily 
D) ​Both A&B 
A) ​Increase the price for the tea 
B) Offer free expedited shipping on the coffee 
C) Advertise the tea more heavily 
D) ​Both A&B

Question 9

​You lose your job and as a result your demand for steak falls.This implies that you consider steaks to be a

Accepted Answer

A) ​Complementary good 
B) Normal good 
C) Inferior good 
D) ​Substitute good 
A) ​Complementary good 
B) Normal good 
C) Inferior good 
D) ​Substitute good

Question 10

How does an increase in the price of laptop memory chips affect the market of laptops?​

Accepted Answer

A) ​The demand curve for laptops shifts to the right 
B) The demand curve for laptops shifts to the left 
C) The supply curve for laptops shifts to the right 
D) ​The supply curve for laptops shifts to the left 
A) ​The demand curve for laptops shifts to the right 
B) The demand curve for laptops shifts to the left 
C) The supply curve for laptops shifts to the right 
D) ​The supply curve for laptops shifts to the left

Question 11

​Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.Assuming that the pizza and the wings are complements,which of these strategies can it employ?

Accepted Answer

A) ​Increase the price of the wings 
B) Decrease the price of the wings 
C) Increase the quality of the pizza 
D) ​Both B & C 
A) ​Increase the price of the wings 
B) Decrease the price of the wings 
C) Increase the quality of the pizza 
D) ​Both B & C

Question 12

A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.If the market maker wants to make three transactions,what should he ask (the buyers)​

Accepted Answer

A) ​$12 
B) $13 
C) $14 
D) ​$15 
A) ​$12 
B) $13 
C) $14 
D) ​$15

Question 13

​An increase in income causes the demand for inferior goods to_____________ and the price of inferior goods to ____________.

Accepted Answer

A) ​Increase;increase 
B) Increase;decrease 
C) Decrease;increase 
D) ​Decrease,decrease 
A) ​Increase;increase 
B) Increase;decrease 
C) Decrease;increase 
D) ​Decrease,decrease

Question 14

​Which of the following statements is true

Accepted Answer

A) ​a market equilibrium price is where quantity demanded equals quantity supplied 
B) a market equilibrium price is where the demand is higher than the supply 
C) a market equilibrium price is where the supply is higher than the demand 
D) ​none of the above 
A) ​a market equilibrium price is where quantity demanded equals quantity supplied 
B) a market equilibrium price is where the demand is higher than the supply 
C) a market equilibrium price is where the supply is higher than the demand 
D) ​none of the above

Question 15

​An increase in demand could arise from which of the following factors

Accepted Answer

A) ​an increase in income 
B) a decrease in the price of a substitute 
C) an increase in the price of a complement 
D) ​all of the above 
A) ​an increase in income 
B) a decrease in the price of a substitute 
C) an increase in the price of a complement 
D) ​all of the above

Question 16

​An increase in demand could arise from which of the following factors

Accepted Answer

A) ​an increase in income 
B) a decrease in the price of a complement 
C) an increase in the price of a substitute 
D) ​all of the above 
A) ​an increase in income 
B) a decrease in the price of a complement 
C) an increase in the price of a substitute 
D) ​all of the above

Question 17

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that​

Accepted Answer

A) ​the pizza and the wings are substitutes 
B) the pizza and the wings are complements 
C) the pizza and the wings are unrelated in demands 
D) ​it cannot increase the sales of its pizzas 
A) ​the pizza and the wings are substitutes 
B) the pizza and the wings are complements 
C) the pizza and the wings are unrelated in demands 
D) ​it cannot increase the sales of its pizzas

Question 18

​For a wheat farmer,the following factor(s)are uncontrollable

Accepted Answer

A) ​Quality of the wheat 
B) Weather 
C) The speed at which the product reaches its buyers 
D) ​All of the above 
A) ​Quality of the wheat 
B) Weather 
C) The speed at which the product reaches its buyers 
D) ​All of the above

Question 19

An increase in the income of bus riders,accompanied by a simultaneous increase in the wages of the bus drivers causes,the price for bus rides(an inferior good)_____________ and the quantity demanded for bus rides ____________.​

Accepted Answer

A) ​Decreases;decreases 
B) Increase;increases 
C) Uncertain,Decreases 
D) ​Uncertain,Increases 
A) ​Decreases;decreases 
B) Increase;increases 
C) Uncertain,Decreases 
D) ​Uncertain,Increases

Question 20

​Changes in the price of a product can cause

Accepted Answer

A) ​A movement along the demand curve 
B) A shift of the demand curve 
C) A shift of the supply curve 
D) ​All of the above 
A) ​A movement along the demand curve 
B) A shift of the demand curve 
C) A shift of the supply curve 
D) ​All of the above

The information conveyed by changes in market prices is especially important in financial markets because

Which of the following statements is true?

The law of supply states that,holding other factors constant,as price increases

An increase in price could occur due to a(n)

A recent medical study reports new benefits of cycling.Simultaneously,the price of the parts needed to make bikes falls. The demand curve would _ and the supply curve would__

Which of the following factors would shift the supply curve for ice cream to the right?

Suppose there are 11 buyers and 11 sellers,each willing to buy or sell one unit of a good,with values {$14,$13,$12,$11,$10,$9,$8,$7,$6,$5,$4,}.Assume no transaction costs and a competitive market.At the optimal bid-ask spread,how many transactions would the market maker undertake in this market

Firm X owns both tea and coffee plantations.It sells directly to the public.If the firm wants to increase the sales for the coffee,assuming that tea and coffee are substitutes,which of these strategies can it employ?

You lose your job and as a result your demand for steak falls.This implies that you consider steaks to be a

How does an increase in the price of laptop memory chips affect the market of laptops?

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.Assuming that the pizza and the wings are complements,which of these strategies can it employ?

An increase in income causes the demand for inferior goods to_ and the price of inferior goods to .

Which of the following statements is true

An increase in demand could arise from which of the following factors

An increase in demand could arise from which of the following factors

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that

For a wheat farmer,the following factor(s)are uncontrollable

An increase in the income of bus riders,accompanied by a simultaneous increase in the wages of the bus drivers causes,the price for bus rides(an inferior good)_ and the quantity demanded for bus rides .

Changes in the price of a product can cause

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 7: Understanding Markets and Industry Changes

​The information conveyed by changes in market prices is especially important in financial markets because

​Which of the following statements is true?

​The law of supply states that,holding other factors constant,as price increases

​An increase in price could occur due to a(n)

​A recent medical study reports new benefits of cycling.Simultaneously,the price of the parts needed to make bikes falls. The demand curve would _________ and the supply curve would__________

​Which of the following factors would shift the supply curve for ice cream to the right?

Suppose there are 11 buyers and 11 sellers,each willing to buy or sell one unit of a good,with values {$14,$13,$12,$11,$10,$9,$8,$7,$6,$5,$4,}.Assume no transaction costs and a competitive market.At the optimal bid-ask spread,how many transactions would the market maker undertake in this market

Firm X owns both tea and coffee plantations.It sells directly to the public.If the firm wants to increase the sales for the coffee,assuming that tea and coffee are substitutes,which of these strategies can it employ?​

​You lose your job and as a result your demand for steak falls.This implies that you consider steaks to be a

How does an increase in the price of laptop memory chips affect the market of laptops?​

​Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.Assuming that the pizza and the wings are complements,which of these strategies can it employ?

​An increase in income causes the demand for inferior goods to_____________ and the price of inferior goods to ____________.

​Which of the following statements is true

​An increase in demand could arise from which of the following factors

​An increase in demand could arise from which of the following factors

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that​

​For a wheat farmer,the following factor(s)are uncontrollable

An increase in the income of bus riders,accompanied by a simultaneous increase in the wages of the bus drivers causes,the price for bus rides(an inferior good)_____________ and the quantity demanded for bus rides ____________.​

​Changes in the price of a product can cause

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

The information conveyed by changes in market prices is especially important in financial markets because

Which of the following statements is true?

The law of supply states that,holding other factors constant,as price increases

An increase in price could occur due to a(n)

A recent medical study reports new benefits of cycling.Simultaneously,the price of the parts needed to make bikes falls. The demand curve would _ and the supply curve would__

Which of the following factors would shift the supply curve for ice cream to the right?

Firm X owns both tea and coffee plantations.It sells directly to the public.If the firm wants to increase the sales for the coffee,assuming that tea and coffee are substitutes,which of these strategies can it employ?

You lose your job and as a result your demand for steak falls.This implies that you consider steaks to be a

How does an increase in the price of laptop memory chips affect the market of laptops?

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.Assuming that the pizza and the wings are complements,which of these strategies can it employ?

An increase in income causes the demand for inferior goods to_ and the price of inferior goods to .

Which of the following statements is true

An increase in demand could arise from which of the following factors

An increase in demand could arise from which of the following factors

Peter's Pizzeria sells both pizzas and wings.It wants to increase the sales of its pizzas.If it decides to increase the price of the wings,it is assuming that

For a wheat farmer,the following factor(s)are uncontrollable

An increase in the income of bus riders,accompanied by a simultaneous increase in the wages of the bus drivers causes,the price for bus rides(an inferior good)_ and the quantity demanded for bus rides .

Changes in the price of a product can cause