Question 1

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

Accepted Answer

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

Question 2

In the 1990s,many people had rising incomes.At the same time,there was a rise in cost of wood.Holding other factors constant,the demand for houses_________ and the supply for houses_________.

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 3

Holding other factors constant,bad weather causes the supply curve for agricultural products to

Accepted Answer

A) Shift to the left,causing the prices of agricultural products to rise 
B) Shift to the left,causing the prices of agricultural products to fall 
C) Stay the same 
D) The supply curve does not shift.Only the demand curve shifts. 
A) Shift to the left,causing the prices of agricultural products to rise 
B) Shift to the left,causing the prices of agricultural products to fall 
C) Stay the same 
D) The supply curve does not shift.Only the demand curve shifts.

Question 4

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,what is the equilibrium price in this market?

Accepted Answer

A) 7 
B) 8 
C) 9 
D) 10 
A) 7 
B) 8 
C) 9 
D) 10

Question 5

Based on the answer above,the price for Nike shoes_____________ and the quantity demanded for Nike shoes ____________.

Accepted Answer

A) Uncertain;decreases 
B) Decreases;increases 
C) Decreases;uncertain 
D) Increases;uncertain 
A) Uncertain;decreases 
B) Decreases;increases 
C) Decreases;uncertain 
D) Increases;uncertain

Question 6

The price of peanuts increases.At the same time,we see the price for Jelly rise.How does this affect the market for peanut butter?

Accepted Answer

A) The demand curve will shift to the left;the supply curve will shift to the left 
B) The demand curve will shift to the left;the supply curve will shift to the right 
C) The demand curve will shift to the right;the supply curve will shift to the left 
D) The demand curve will shift to the right;the supply curve will shift to the right 
A) The demand curve will shift to the left;the supply curve will shift to the left 
B) The demand curve will shift to the left;the supply curve will shift to the right 
C) The demand curve will shift to the right;the supply curve will shift to the left 
D) The demand curve will shift to the right;the supply curve will shift to the right

Question 7

Based on the answer above,the price for bus rides _____________ and the quantity demanded for rides ____________.

Accepted Answer

A) Decreases;decreases 
B) Decreases;increases 
C) Decreases;uncertain 
D) Increases;uncertain 
A) Decreases;decreases 
B) Decreases;increases 
C) Decreases;uncertain 
D) Increases;uncertain

Question 8

What will happen to the demand for beers such as Natural Light,Coors Light and Bud Light near college towns if students' income increased tremendously?

Accepted Answer

A) Demand will fall because students love these beers 
B) Demand will fall because these beers are considered inferior goods 
C) Demand will rise because these beers are considered inferior goods 
D) Demand will not change as students are already maximizing their drinking capacity 
A) Demand will fall because students love these beers 
B) Demand will fall because these beers are considered inferior goods 
C) Demand will rise because these beers are considered inferior goods 
D) Demand will not change as students are already maximizing their drinking capacity

Question 9

Now suppose competition among several market makers forces the spread down to $4.How many goods are traded?

Accepted Answer

A) Four 
B) Five 
C) Six 
D) Seven 
A) Four 
B) Five 
C) Six 
D) Seven

Question 10

Suppose there is a single market maker in this market.What is the optimal bid-ask spread?

Accepted Answer

A) $6 bid;$12 ask 
B) $7 bid;$11 ask 
C) $8 bid;$10 ask 
D) $9 bid;$9 ask 
A) $6 bid;$12 ask 
B) $7 bid;$11 ask 
C) $8 bid;$10 ask 
D) $9 bid;$9 ask

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

In the 1990s,many people had rising incomes.At the same time,there was a rise in cost of wood.Holding other factors constant,the demand for houses_ and the supply for houses_.

Holding other factors constant,bad weather causes the supply curve for agricultural products to

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,what is the equilibrium price in this market?

Based on the answer above,the price for Nike shoes_ and the quantity demanded for Nike shoes .

The price of peanuts increases.At the same time,we see the price for Jelly rise.How does this affect the market for peanut butter?

Based on the answer above,the price for bus rides _ and the quantity demanded for rides .

What will happen to the demand for beers such as Natural Light,Coors Light and Bud Light near college towns if students' income increased tremendously?

Now suppose competition among several market makers forces the spread down to $4.How many goods are traded?

Suppose there is a single market maker in this market.What is the optimal bid-ask spread?

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

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 Indirect 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 8: Understanding Markets and Industry Changes

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

In the 1990s,many people had rising incomes.At the same time,there was a rise in cost of wood.Holding other factors constant,the demand for houses_________ and the supply for houses_________.

Holding other factors constant,bad weather causes the supply curve for agricultural products to

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,what is the equilibrium price in this market?

Based on the answer above,the price for Nike shoes_____________ and the quantity demanded for Nike shoes ____________.

The price of peanuts increases.At the same time,we see the price for Jelly rise.How does this affect the market for peanut butter?

Based on the answer above,the price for bus rides _____________ and the quantity demanded for rides ____________.

What will happen to the demand for beers such as Natural Light,Coors Light and Bud Light near college towns if students' income increased tremendously?

Now suppose competition among several market makers forces the spread down to $4.How many goods are traded?

Suppose there is a single market maker in this market.What is the optimal bid-ask spread?

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

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 Indirect 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

In the 1990s,many people had rising incomes.At the same time,there was a rise in cost of wood.Holding other factors constant,the demand for houses_ and the supply for houses_.

Based on the answer above,the price for Nike shoes_ and the quantity demanded for Nike shoes .

Based on the answer above,the price for bus rides _ and the quantity demanded for rides .