Question 1

The quantity of a good that consumers demand depends only on the price of the good.

Accepted Answer

A) True 
 B)False

Question 2

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

Accepted Answer

A)  no pizzas supplied. 
B)  equilibrium. 
C)  excess supply. 
D)  excess demand. 
A)  no pizzas supplied. 
B)  equilibrium. 
C)  excess supply. 
D)  excess demand.

Question 3

A change in a relevant factor other than the price of the good itself causes a ________ the demand curve,and a change in a good's own price causes a ________ the demand curve.

Accepted Answer

A)  shift of; shift of 
B)  shift of; movement along 
C)  movement along; shift of 
D)  movement along; movement along 
A)  shift of; shift of 
B)  shift of; movement along 
C)  movement along; shift of 
D)  movement along; movement along

Question 4

If the price of a pizza were to increase to $50,many people would give up eating pizza while others would continue to eat it.This would indicate

Accepted Answer

A)  those who are buying pizza value it at least $50 per pizza. 
B)  those who are not buying pizza value it more than $50 per pizza. 
C)  only those who are extremely wealthy are buying pizza. 
D)  the price of pizza needs to be regulated by the federal government. 
A)  those who are buying pizza value it at least $50 per pizza. 
B)  those who are not buying pizza value it more than $50 per pizza. 
C)  only those who are extremely wealthy are buying pizza. 
D)  the price of pizza needs to be regulated by the federal government.

Question 5

If the price of a good is initially below the equilibrium level

Accepted Answer

A)  the supply curve will shift leftward. 
B)  the supply curve will shift rightward. 
C)  firms supply none of the good. 
D)  excess demand exists. 
A)  the supply curve will shift leftward. 
B)  the supply curve will shift rightward. 
C)  firms supply none of the good. 
D)  excess demand exists.

Question 6

A restriction on the number of people allowed to be medical doctors in the United States would most likely

Accepted Answer

A)  increase doctors' fees. 
B)  decrease the demand for doctors. 
C)  decrease the demand for nurses. 
D)  decrease the number of people who get sick. 
A)  increase doctors' fees. 
B)  decrease the demand for doctors. 
C)  decrease the demand for nurses. 
D)  decrease the number of people who get sick.

Question 7

A increase in quantity demanded as a result of a change in price

Accepted Answer

A)  is a rightward shift of the demand curve. 
B)  is a leftward shift of the demand curve. 
C)  leaves the demand curve unchanged. 
D)  is not possible. 
A)  is a rightward shift of the demand curve. 
B)  is a leftward shift of the demand curve. 
C)  leaves the demand curve unchanged. 
D)  is not possible.

Question 8

Which of the following would NOT change demand?

Accepted Answer

A)  the price of the product 
B)  information about the product's health effects 
C)  the income of the consumers 
D)  the price of related products 
A)  the price of the product 
B)  information about the product's health effects 
C)  the income of the consumers 
D)  the price of related products

Question 9

A price floor that is set above the equilibrium price

Accepted Answer

A)  causes suppliers to lower their prices. 
B)  is binding. 
C)  is non-binding. 
D)  creates a shortage. 
A)  causes suppliers to lower their prices. 
B)  is binding. 
C)  is non-binding. 
D)  creates a shortage.

Question 10

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 11

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 12

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 13

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 14

Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good.The price of a substitute good increases and the price of an input to production also increases.Graph the original demand and supply curves,and the curves after the substitute good and input prices increase.How will the equilibrium price change after the substitute and input prices increase?

Accepted Answer

@#IMG-DLM& See the above figure.The new demand cur

Question 15

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)  whether the economy is free-market or command. 
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)  whether the economy is free-market or command.

Question 16

When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

Accepted Answer

A) True 
 B)False

Question 17

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be supplied unless the price is above

Accepted Answer

A)  $0. 
B)  $5. 
C)  $12. 
D)  $14. 
A)  $0. 
B)  $5. 
C)  $12. 
D)  $14.

Question 18

-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 tea 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 19

The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Accepted Answer

A)  0; there is excess supply at $7. 
B)  20 units 
C)  30 units 
D)  10 units 
A)  0; there is excess supply at $7. 
B)  20 units 
C)  30 units 
D)  10 units

Question 20

Assume the price of a movie is $10.Jenna demands 2 movies per week,Sam demands 3 movies per week,and Jordan demands 8 movies per week.From this information we can conclude that

Accepted Answer

A)  the market quantity demanded at a price of $10 is at least 13 movies per week. 
B)  Jordan is obviously more wealthy than either Sam or Jeanna. 
C)  Sam is irrational compared to Jenna or Jordan. 
D)  the movie industry is unprofitable. 
A)  the market quantity demanded at a price of $10 is at least 13 movies per week. 
B)  Jordan is obviously more wealthy than either Sam or Jeanna. 
C)  Sam is irrational compared to Jenna or Jordan. 
D)  the movie industry is unprofitable.

The quantity of a good that consumers demand depends only on the price of the good.

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

A change in a relevant factor other than the price of the good itself causes a the demand curve,and a change in a good's own price causes a the demand curve.

If the price of a pizza were to increase to $50,many people would give up eating pizza while others would continue to eat it.This would indicate

If the price of a good is initially below the equilibrium level

A restriction on the number of people allowed to be medical doctors in the United States would most likely

A increase in quantity demanded as a result of a change in price

Which of the following would NOT change demand?

A price floor that is set above the equilibrium price

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

Equilibrium is defined as a situation in which

Agricultural price supports are

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

The supply curve is influenced by

When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be supplied unless the price is above

-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 tea after severe weather destroys a large portion of the coffee crop?

The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Assume the price of a movie is $10.Jenna demands 2 movies per week,Sam demands 3 movies per week,and Jordan demands 8 movies per week.From this information we can conclude that

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 quantity of a good that consumers demand depends only on the price of the good.

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

A change in a relevant factor other than the price of the good itself causes a ________ the demand curve,and a change in a good's own price causes a ________ the demand curve.

If the price of a pizza were to increase to $50,many people would give up eating pizza while others would continue to eat it.This would indicate

If the price of a good is initially below the equilibrium level

A restriction on the number of people allowed to be medical doctors in the United States would most likely

A increase in quantity demanded as a result of a change in price

Which of the following would NOT change demand?

A price floor that is set above the equilibrium price

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

Equilibrium is defined as a situation in which

Agricultural price supports are

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

The supply curve is influenced by

When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be supplied unless the price is above

-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 tea after severe weather destroys a large portion of the coffee crop?

The above figure shows a graph of a market for pizzas in a large town.At a price of $7,what is the amount of excess demand?

Assume the price of a movie is $10.Jenna demands 2 movies per week,Sam demands 3 movies per week,and Jordan demands 8 movies per week.From this information we can conclude that

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

A change in a relevant factor other than the price of the good itself causes a the demand curve,and a change in a good's own price causes a the demand curve.