Question 1

It is appropriate to use the supply-and demand-model if,in a market,

Accepted Answer

A)  everyone is a price taker with full information about the price and quality of the good. 
B)  firms sell identical products. 
C)  costs of trading are low. 
D)  All of the above. 
A)  everyone is a price taker with full information about the price and quality of the good. 
B)  firms sell identical products. 
C)  costs of trading are low. 
D)  All of the above.

Question 2

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of pizza,and Pb is the price of a burrito.What is the relationship between burritos and pizza,from the point of view of consumers?

Accepted Answer

A)  They are independent. 
B)  They are complements. 
C)  They are substitutes. 
D)  Not enough information to answer the question. 
A)  They are independent. 
B)  They are complements. 
C)  They are substitutes. 
D)  Not enough information to answer the question.

Question 3

Consider the demand function Qd = 150 - 2P.The effects of other determinants of Qd is reflected in

Accepted Answer

A)  the intercept of the function. 
B)  the slope of the function. 
C)  neither the slope nor the intercept of the function. 
D)  in both the slope and the intercept of the function. 
A)  the intercept of the function. 
B)  the slope of the function. 
C)  neither the slope nor the intercept of the function. 
D)  in both the slope and the intercept of the function.

Question 4

If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price,the supply curve will

Accepted Answer

A)  shift leftward by 2 units. 
B)  shift rightward by 2 units. 
C)  shift vertically up by 2 units. 
D)  shift vertically down by 2 units. 
A)  shift leftward by 2 units. 
B)  shift rightward by 2 units. 
C)  shift vertically up by 2 units. 
D)  shift vertically down by 2 units.

Question 5

An increase in the price of oil will

Accepted Answer

A)  shift the supply curve of oil to the left. 
B)  shift the supply curve of oil to the right. 
C)  leave the supply curve of oil unchanged. 
D)  Not enough information to answer the question. 
A)  shift the supply curve of oil to the left. 
B)  shift the supply curve of oil to the right. 
C)  leave the supply curve of oil unchanged. 
D)  Not enough information to answer the question.

Question 6

-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 7

What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?

Accepted Answer

A)  The demand for DVDs was declining. 
B)  The supply of DVD players was decreasing. 
C)  The supply of DVD players was increasing more than the demand for DVD players. 
D)  The demand for DVD players was increasing more than the supply of DVD players. 
A)  The demand for DVDs was declining. 
B)  The supply of DVD players was decreasing. 
C)  The supply of DVD players was increasing more than the demand for DVD players. 
D)  The demand for DVD players was increasing more than the supply of DVD players.

Question 8

-The above figure shows a graph of the market for pizzas in a large town.If the price increases from $7 to $8 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.

Question 9

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

Accepted Answer

A)  supply curve is unchanged. 
B)  supply curve is vertical. 
C)  demand curve becomes vertical. 
D)  demand curve becomes horizontal. 
A)  supply curve is unchanged. 
B)  supply curve is vertical. 
C)  demand curve becomes vertical. 
D)  demand curve becomes horizontal.

Question 10

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 11

If a good is not produced,then there is no demand for it.

Accepted Answer

A) True 
 B)False

Question 12

What happens to the equilibrium price and quantity of coffee when there is a leftward shift of the supply curve for tea? Explain.

Accepted Answer

@#IMG-DLM& See the above figure.The left

Question 13

A leftward shift of the supply curve will lead to an

Accepted Answer

A)  increase in equilibrium price. 
B)  excess supply at the old equilibrium price. 
C)  increase in quantity supplied. 
D)  All of the above. 
A)  increase in equilibrium price. 
B)  excess supply at the old equilibrium price. 
C)  increase in quantity supplied. 
D)  All of the above.

Question 14

Use a supply-and-demand graph to predict what happens to sheet steel prices in the United States after quotas on Japanese and European sheet steel expire.

Accepted Answer

@#IMG-DLM& See the above figure.The quota-restrict

Question 15

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 Jenna. 
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 Jenna. 
C)  Sam is irrational compared to Jenna or Jordan. 
D)  the movie industry is unprofitable.

Question 16

An increase in the demand curve for orange juice would be illustrated as a

Accepted Answer

A)  leftward shift of the demand curve. 
B)  rightward shift of the demand curve. 
C)  movement up along the demand curve. 
D)  movement down along the demand curve. 
A)  leftward shift of the demand curve. 
B)  rightward shift of the demand curve. 
C)  movement up along the demand curve. 
D)  movement down along the demand curve.

Question 17

-The above figure shows a graph of the market for pizzas in a large town.What are the equilibrium price and quantity?

Accepted Answer

A)  p = 8, Q = 60 
B)  p = 7, Q = 40 
C)  p = 7, Q = 70 
D)  p = 10, Q = 40 
A)  p = 8, Q = 60 
B)  p = 7, Q = 40 
C)  p = 7, Q = 70 
D)  p = 10, Q = 40

Question 18

-The above figure shows a graph of the market for pizzas in a large town.If the price increases from $7 to $8 per pizza,the quantity of pizzas supplied will

Accepted Answer

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

Question 19

Suppose an individual inverse demand curve is given as P = 2 - 1/2 qi,where qi is the quantity demanded by individual i.There are 50 individual consumers with this identical,individual inverse demand curve.Solve for the market demand curve.

Accepted Answer

Solve for the individual,regul

Question 20

Considering that the U.S.places a quota on imports of steel from South Korea,which of the following would NOT likely occur?

Accepted Answer

A)  The price of steel in the United States would increase. 
B)  The quantity of steel produced in the United States would increase or stay the same. 
C)  The demand for steel in the United States will increase. 
D)  The quantity demanded for steel in the United States will decrease. 
A)  The price of steel in the United States would increase. 
B)  The quantity of steel produced in the United States would increase or stay the same. 
C)  The demand for steel in the United States will increase. 
D)  The quantity demanded for steel in the United States will decrease.

It is appropriate to use the supply-and demand-model if,in a market,

Suppose the market demand curve for pizza can be expressed as Q^D = 100 - 2P + 3Pb,where Q^D is the quantity of pizza demanded,P is the price of pizza,and Pb is the price of a burrito.What is the relationship between burritos and pizza,from the point of view of consumers?

Consider the demand function Qd = 150 - 2P.The effects of other determinants of Qd is reflected in

If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price,the supply curve will

An increase in the price of oil will

-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?

What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?

-The above figure shows a graph of the market for pizzas in a large town.If the price increases from $7 to $8 per pizza,the quantity of pizzas demanded will

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

If price is initially above the equilibrium level,

If a good is not produced,then there is no demand for it.

What happens to the equilibrium price and quantity of coffee when there is a leftward shift of the supply curve for tea? Explain.

A leftward shift of the supply curve will lead to an

Use a supply-and-demand graph to predict what happens to sheet steel prices in the United States after quotas on Japanese and European sheet steel expire.

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

An increase in the demand curve for orange juice would be illustrated as a

-The above figure shows a graph of the market for pizzas in a large town.What are the equilibrium price and quantity?

-The above figure shows a graph of the market for pizzas in a large town.If the price increases from $7 to $8 per pizza,the quantity of pizzas supplied will

Suppose an individual inverse demand curve is given as P = 2 - 1/2 qⁱ,where qⁱis the quantity demanded by individual i.There are 50 individual consumers with this identical,individual inverse demand curve.Solve for the market demand curve.

Considering that the U.S.places a quota on imports of steel from South Korea,which of the following would NOT likely occur?

Introduction

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 2: Supply and Demand

It is appropriate to use the supply-and demand-model if,in a market,

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of pizza,and Pb is the price of a burrito.What is the relationship between burritos and pizza,from the point of view of consumers?

Consider the demand function Qd = 150 - 2P.The effects of other determinants of Qd is reflected in

If the supply curve of a product changes so that sellers are now willing to sell 2 additional units at any given price,the supply curve will

An increase in the price of oil will

-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?

What can explain the fact that DVD players decreased in price during the 1990s even as more DVD players were being sold?

-The above figure shows a graph of the market for pizzas in a large town.If the price increases from $7 to $8 per pizza,the quantity of pizzas demanded will

-The above figure shows a graph of the market for pizzas in a large town.Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas.As a result,for prices greater than $7,the

If price is initially above the equilibrium level,

If a good is not produced,then there is no demand for it.

What happens to the equilibrium price and quantity of coffee when there is a leftward shift of the supply curve for tea? Explain.

A leftward shift of the supply curve will lead to an

Use a supply-and-demand graph to predict what happens to sheet steel prices in the United States after quotas on Japanese and European sheet steel expire.

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

An increase in the demand curve for orange juice would be illustrated as a

-The above figure shows a graph of the market for pizzas in a large town.What are the equilibrium price and quantity?

-The above figure shows a graph of the market for pizzas in a large town.If the price increases from $7 to $8 per pizza,the quantity of pizzas supplied will

Suppose an individual inverse demand curve is given as P = 2 - 1/2 qi,where qi is the quantity demanded by individual i.There are 50 individual consumers with this identical,individual inverse demand curve.Solve for the market demand curve.

Considering that the U.S.places a quota on imports of steel from South Korea,which of the following would NOT likely occur?

Introduction

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Suppose the market demand curve for pizza can be expressed as Q^D = 100 - 2P + 3Pb,where Q^D is the quantity of pizza demanded,P is the price of pizza,and Pb is the price of a burrito.What is the relationship between burritos and pizza,from the point of view of consumers?

Suppose an individual inverse demand curve is given as P = 2 - 1/2 qⁱ,where qⁱis the quantity demanded by individual i.There are 50 individual consumers with this identical,individual inverse demand curve.Solve for the market demand curve.