Question 1

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $25 to $30,what is the price elasticity of demand

Accepted Answer

A) 0.2 
B) 0.4 
C) 1.4 
D) 2.3 
A) 0.2 
B) 0.4 
C) 1.4 
D) 2.3

Question 2

If there is an improvement in the technology of producing a product,the supply curve for that product will shift to the left.

Accepted Answer

A) True 
 B)False

Question 3

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $48 to $52,what is the price elasticity of demand

Accepted Answer

A) 0 
B) 0.1 
C) 3.2 
D) 11.0 
A) 0 
B) 0.1 
C) 3.2 
D) 11.0

Question 4

Table 4-2
  
-Refer to the Table 4-2.What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price

Accepted Answer

A) space A 
B) space B 
C) space C 
D) space D 
A) space A 
B) space B 
C) space C 
D) space D

Question 5

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $25 to $27,what is the price elasticity of demand

Accepted Answer

A) 0.013 
B) 0.13 
C) 1.3 
D) 13.0 
A) 0.013 
B) 0.13 
C) 1.3 
D) 13.0

Question 6

What is a table called that shows the relationship between the price of a good and the quantity demanded

Accepted Answer

A) demand table 
B) demand schedule 
C) market table 
D) quantity-demanded schedule 
A) demand table 
B) demand schedule 
C) market table 
D) quantity-demanded schedule

Question 7

What will a country with an aging population generally experience

Accepted Answer

A) no change in either market demand or individual demand for prescription drugs 
B) a decrease in the market demand for prescription drugs 
C) an increase in individual demand for prescription drugs, but no change in market demand 
D) an increase in the market demand for prescription drugs 
A) no change in either market demand or individual demand for prescription drugs 
B) a decrease in the market demand for prescription drugs 
C) an increase in individual demand for prescription drugs, but no change in market demand 
D) an increase in the market demand for prescription drugs

Question 8

When it comes to people's tastes,what do economists generally believe

Accepted Answer

A) Tastes are based on forces beyond the realm of economics. 
B) Tastes are based on historical and psychological forces. 
C) Tastes don't change. 
D) Tastes do not directly affect demand. 
A) Tastes are based on forces beyond the realm of economics. 
B) Tastes are based on historical and psychological forces. 
C) Tastes don't change. 
D) Tastes do not directly affect demand.

Question 9

Figure 4-1
  
-Refer to the Figure 4-1.What could cause the movement from S to S₁

Accepted Answer

A) a decrease in the price of the good 
B) an improvement in technology 
C) an increase in income 
D) an increase in input prices 
A) a decrease in the price of the good 
B) an improvement in technology 
C) an increase in income 
D) an increase in input prices

Question 10

What is on the vertical axis of a demand graph

Accepted Answer

A) income 
B) quantity 
C) cost of production 
D) price 
A) income 
B) quantity 
C) cost of production 
D) price

Question 11

In the aftermath of hurricane Odile,parts of the Baja Peninsula have been isolated so that the transportation of gasoline to consumers has become very difficult.Local authorities in various locations have tried various ways to address the situation.
a) Using a supply and demand model,analyze the effect of the hurricane on the market for gasoline.
b) In some places,local authorities have decided to distribute a certain amount of gasoline for free,so that every consumer had the right to a fixed allowance.Show and discuss the effects of this decision on the market.
c) In other places,local authorities have imposed a price cap on gas.Show this in a supply and demand diagram and explain the consequences.

Accepted Answer

a) The supply curve shifts to the left f

Question 12

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $10 to $15,what is the price elasticity of demand

Accepted Answer

A) 0.14 
B) 1.4 
C) 3.7 
D) 7.3 
A) 0.14 
B) 1.4 
C) 3.7 
D) 7.3

Question 13

Which of the following would definitely result in a higher price in the market for smart phones

Accepted Answer

A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase 
A) demand increases and supply decreases 
B) demand and supply both decrease 
C) demand decreases and supply increases 
D) demand and supply both increase

Question 14

Market demand is given as QD = 100 - 2P.Market supply is given as QS = P + 200.If price increases from $40 to $45,what is the price elasticity of demand

Accepted Answer

A) 0.2 
B) 0.6 
C) 3.7 
D) 5.7 
A) 0.2 
B) 0.6 
C) 3.7 
D) 5.7

Question 15

Whenever a determinant of demand other than price changes,the demand curve shifts.

Accepted Answer

A) True 
 B)False

Question 16

You lose your job and,as a result,you buy fewer mystery books.What does this show that you consider mystery books to be

Accepted Answer

A) a normal good 
B) an inferior good 
C) a luxury good 
D) a complementary good 
A) a normal good 
B) an inferior good 
C) a luxury good 
D) a complementary good

Question 17

What is the sum of all individual demand curves for a product

Accepted Answer

A) total demand 
B) consumption demand 
C) summation demand 
D) market demand 
A) total demand 
B) consumption demand 
C) summation demand 
D) market demand

Question 18

Market demand is given as QD = 220 - 4P.Market supply is given as QS = 2P + 40.If price increases from $50 to $53,what is the price elasticity of demand

Accepted Answer

A) 0.1 
B) 1.0 
C) 12.0 
D) 14.7 
A) 0.1 
B) 1.0 
C) 12.0 
D) 14.7

Question 19

Market demand is given as QD = 40 - 2P.Market supply is given as QS = 2P.If price increases from $3 to $5,what is the price elasticity of demand

Accepted Answer

A) 0.3 
B) 0.6 
C) 1.7 
D) 3.4 
A) 0.3 
B) 0.6 
C) 1.7 
D) 3.4

Question 20

Once the demand curve for a product or service is drawn,what is possible

Accepted Answer

A) It can shift either right or left. 
B) It remains stable over time at a given price. 
C) It can shift if the price changes. 
D) It can only be accurate at one price. 
A) It can shift either right or left. 
B) It remains stable over time at a given price. 
C) It can shift if the price changes. 
D) It can only be accurate at one price.

Exam 4: The Market Forces of Supply and Demand

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $25 to $30,what is the price elasticity of demand

If there is an improvement in the technology of producing a product,the supply curve for that product will shift to the left.

Market demand is given as QD = 250 - 0.5P.Market supply is given as QS = 2P.If price increases from $48 to $52,what is the price elasticity of demand

Table 4-2 -Refer to the Table 4-2.What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price

Market demand is given as QD = 140 - 5P.Market supply is given as QS = 2P.If price increases from $25 to $27,what is the price elasticity of demand

What is a table called that shows the relationship between the price of a good and the quantity demanded

What will a country with an aging population generally experience

When it comes to people's tastes,what do economists generally believe

Figure 4-1 -Refer to the Figure 4-1.What could cause the movement from S to S₁

What is on the vertical axis of a demand graph

Market demand is given as QD = 300 - 3P.Market supply is given as QS = 2P + 100.If price increases from $10 to $15,what is the price elasticity of demand

Which of the following would definitely result in a higher price in the market for smart phones

Market demand is given as QD = 100 - 2P.Market supply is given as QS = P + 200.If price increases from $40 to $45,what is the price elasticity of demand

Whenever a determinant of demand other than price changes,the demand curve shifts.

You lose your job and,as a result,you buy fewer mystery books.What does this show that you consider mystery books to be

What is the sum of all individual demand curves for a product

Market demand is given as QD = 220 - 4P.Market supply is given as QS = 2P + 40.If price increases from $50 to $53,what is the price elasticity of demand

Market demand is given as QD = 40 - 2P.Market supply is given as QS = 2P.If price increases from $3 to $5,what is the price elasticity of demand

Once the demand curve for a product or service is drawn,what is possible

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

Elasticity and Its Application

Supply, demand, and Government Policies

Consumers, producers, and the Efficiency of Markets

Application: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Market demand is given as Q_D= 300 - 3P.Market supply is given as Q_S= 2P + 100.If price increases from $25 to $30,what is the price elasticity of demand

Market demand is given as Q_D= 250 - 0.5P.Market supply is given as Q_S= 2P.If price increases from $48 to $52,what is the price elasticity of demand

Market demand is given as Q_D= 140 - 5P.Market supply is given as Q_S= 2P.If price increases from $25 to $27,what is the price elasticity of demand

Market demand is given as Q_D= 300 - 3P.Market supply is given as Q_S= 2P + 100.If price increases from $10 to $15,what is the price elasticity of demand

Market demand is given as Q_D= 100 - 2P.Market supply is given as Q_S= P + 200.If price increases from $40 to $45,what is the price elasticity of demand

Market demand is given as Q_D= 220 - 4P.Market supply is given as Q_S= 2P + 40.If price increases from $50 to $53,what is the price elasticity of demand

Market demand is given as Q_D= 40 - 2P.Market supply is given as Q_S= 2P.If price increases from $3 to $5,what is the price elasticity of demand