Question 1

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

Accepted Answer

A)  an increase in price but a decrease in quantity. 
B)  a decrease in price but an increase in quantity. 
C)  an increase in both price and quantity. 
D)  a decrease in both price and quantity. 
A)  an increase in price but a decrease in quantity. 
B)  a decrease in price but an increase in quantity. 
C)  an increase in both price and quantity. 
D)  a decrease in both price and quantity.

Question 2

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 3

Suppose the market for potatoes can be expressed as follows:
Supply: QS = -20 + 10p
Demand: QD = 400 - 20p
If the government sets a maximum price of $10 per unit,what will be the quantity demanded and quantity supplied?

Accepted Answer

With a maximum price of $10,suppliers wi

Question 4

From the 1970s through the 1990s,the relative price of a college education has increased greatly.During the same time period,college enrollment has also increased.This evidence suggests that during this time period

Accepted Answer

A)  the demand curve for a college education has shifted leftward. 
B)  the demand curve for a college education has shifted rightward. 
C)  the supply curve for a college education has shifted leftward. 
D)  the supply curve for a college education has shifted rightward. 
A)  the demand curve for a college education has shifted leftward. 
B)  the demand curve for a college education has shifted rightward. 
C)  the supply curve for a college education has shifted leftward. 
D)  the supply curve for a college education has shifted rightward.

Question 5

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

Accepted Answer

A)  300 pounds of apples will be sold at $2. 
B)  no apples will be supplied. 
C)  no apples will be demanded. 
D)  None of the above. 
A)  300 pounds of apples will be sold at $2. 
B)  no apples will be supplied. 
C)  no apples will be demanded. 
D)  None of the above.

Question 6

The power of the supply and demand model lies in its ability

Accepted Answer

A)  to generally predict how price and quantity will change with supply and demand shocks. 
B)  to precisely predict the impact of government regulations on quantity and price. 
C)  to precisely determine the difference between price ceilings and price floors. 
D)  to generally predict how profit motive impacts the distribution of goods and services. 
A)  to generally predict how price and quantity will change with supply and demand shocks. 
B)  to precisely predict the impact of government regulations on quantity and price. 
C)  to precisely determine the difference between price ceilings and price floors. 
D)  to generally predict how profit motive impacts the distribution of goods and services.

Question 7

Suppose society wants to increase the number of teachers in society but doesn't want to pay teachers any more in salary and benefits.This could only occur by

Accepted Answer

A)  making it more expensive to become a teacher, perhaps by raising college tuition rates. 
B)  making it less expensive to become a teacher, perhaps by offering subsidies to college tuition. 
C)  making computers more powerful. 
D)  increasing the income of student parents. 
A)  making it more expensive to become a teacher, perhaps by raising college tuition rates. 
B)  making it less expensive to become a teacher, perhaps by offering subsidies to college tuition. 
C)  making computers more powerful. 
D)  increasing the income of student parents.

Question 8

Supply curves

Accepted Answer

A)  slope upward. 
B)  slope downward. 
C)  are horizontal. 
D)  can have many shapes. 
A)  slope upward. 
B)  slope downward. 
C)  are horizontal. 
D)  can have many shapes.

Question 9

After tickets for a major sporting event are purchased at the official box office price,a market often develops whereby these tickets sell at prices well above the official box office price.Which of the following scenarios would NOT be able to explain this result?

Accepted Answer

A)  The official price was below equilibrium from the moment the tickets were available. 
B)  Increased publicity causes the demand curve for the event to shift rightward. 
C)  The event was not a sellout. 
D)  Not everyone who wanted a ticket was able to buy one at the box office. 
A)  The official price was below equilibrium from the moment the tickets were available. 
B)  Increased publicity causes the demand curve for the event to shift rightward. 
C)  The event was not a sellout. 
D)  Not everyone who wanted a ticket was able to buy one at the box office.

Question 10

The fact that many people drive faster than the posted speed limit suggests that

Accepted Answer

A)  not all price floors are enforceable. 
B)  not all price and quantity regulations are enforceable. 
C)  individual drivers act irrationally. 
D)  government regulation is utterly useless. 
A)  not all price floors are enforceable. 
B)  not all price and quantity regulations are enforceable. 
C)  individual drivers act irrationally. 
D)  government regulation is utterly useless.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Lionfish is an aquatic invasive species in the southeastern U.S.and the Caribbean.Current removal policies focus on harvesting the lionfish for human consumption.However,a fishing license is required to fish in most southern states.Assume that the supply of fishing licenses is Qs = 50 + 0.05L + 40P,where   and P = price of a fishing license,and the demand for fishing licenses is   .What is the equilibrium price and quantity of fishing licenses when L = 10,000?

Accepted Answer

A)  P = $8.5, Q = 890 
B)  P = $13, Q = 620 
C)  P = $13.5, Q = 590 
D)  P = $13.5, Q = 591 
A)  P = $8.5, Q = 890 
B)  P = $13, Q = 620 
C)  P = $13.5, Q = 590 
D)  P = $13.5, Q = 591

Question 13

-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 non-dairy coffee creamer 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 14

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 15

A competitive equilibrium is described by

Accepted Answer

A)  a price only. 
B)  a quantity only. 
C)  the excess supply minus the excess demand. 
D)  a constant price and a quantity. 
A)  a price only. 
B)  a quantity only. 
C)  the excess supply minus the excess demand. 
D)  a constant price and a quantity.

Question 16

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

Accepted Answer

A)  Q = 5p - 100. 
B)  Q = 20 - .2p. 
C)  p = 20 - 5Q. 
D)  p = 20 - .2Q. 
A)  Q = 5p - 100. 
B)  Q = 20 - .2p. 
C)  p = 20 - 5Q. 
D)  p = 20 - .2Q.

Question 17

If the demand curve is vertical a rightward shift of the supply curve will lead to

Accepted Answer

A)  an increase in quantity supplied. 
B)  an increase in quantity demanded. 
C)  a decrease in quantity demanded. 
D)  a decrease in price. 
A)  an increase in quantity supplied. 
B)  an increase in quantity demanded. 
C)  a decrease in quantity demanded. 
D)  a decrease in price.

Question 18

Assume that the market for annual physical checkups is in equilibrium,and not everyone gets an annual physical checkup.What is the effect on price and quantity if a government regulation fixes price at the current level and requires everyone to get an annual physical checkup?

Accepted Answer

@#IMG-DLM& See the above figure.Requirin

Question 19

Quotas are most often supported by

Accepted Answer

A)  foreign producers. 
B)  foreign consumers. 
C)  domestic consumers. 
D)  domestic producers. 
A)  foreign producers. 
B)  foreign consumers. 
C)  domestic consumers. 
D)  domestic producers.

Question 20

One of the biggest benefits of the Internet auction site eBay

Accepted Answer

A)  is its control over prices. 
B)  is that it increases the supply of products. 
C)  is that it increases the demand for products. 
D)  is that it reduces transaction costs for both sellers and buyers. 
A)  is its control over prices. 
B)  is that it increases the supply of products. 
C)  is that it increases the demand for products. 
D)  is that it reduces transaction costs for both sellers and buyers.

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

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

Suppose the market for potatoes can be expressed as follows: Supply: Q^S = -20 + 10p Demand: Q^D = 400 - 20p If the government sets a maximum price of $10 per unit,what will be the quantity demanded and quantity supplied?

From the 1970s through the 1990s,the relative price of a college education has increased greatly.During the same time period,college enrollment has also increased.This evidence suggests that during this time period

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

The power of the supply and demand model lies in its ability

Suppose society wants to increase the number of teachers in society but doesn't want to pay teachers any more in salary and benefits.This could only occur by

Supply curves

After tickets for a major sporting event are purchased at the official box office price,a market often develops whereby these tickets sell at prices well above the official box office price.Which of the following scenarios would NOT be able to explain this result?

The fact that many people drive faster than the posted speed limit suggests that

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

-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 non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

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

A competitive equilibrium is described by

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

If the demand curve is vertical a rightward shift of the supply curve will lead to

Assume that the market for annual physical checkups is in equilibrium,and not everyone gets an annual physical checkup.What is the effect on price and quantity if a government regulation fixes price at the current level and requires everyone to get an annual physical checkup?

Quotas are most often supported by

One of the biggest benefits of the Internet auction site eBay

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

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

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

Suppose the market for potatoes can be expressed as follows: Supply: QS = -20 + 10p Demand: QD = 400 - 20p If the government sets a maximum price of $10 per unit,what will be the quantity demanded and quantity supplied?

From the 1970s through the 1990s,the relative price of a college education has increased greatly.During the same time period,college enrollment has also increased.This evidence suggests that during this time period

-The above figure shows the market for apples.If a consumer group convinces the government to set a maximum price of $2 per pound,then

The power of the supply and demand model lies in its ability

Suppose society wants to increase the number of teachers in society but doesn't want to pay teachers any more in salary and benefits.This could only occur by

Supply curves

After tickets for a major sporting event are purchased at the official box office price,a market often develops whereby these tickets sell at prices well above the official box office price.Which of the following scenarios would NOT be able to explain this result?

The fact that many people drive faster than the posted speed limit suggests that

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

-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 non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?

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

A competitive equilibrium is described by

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

If the demand curve is vertical a rightward shift of the supply curve will lead to

Assume that the market for annual physical checkups is in equilibrium,and not everyone gets an annual physical checkup.What is the effect on price and quantity if a government regulation fixes price at the current level and requires everyone to get an annual physical checkup?

Quotas are most often supported by

One of the biggest benefits of the Internet auction site eBay

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 for potatoes can be expressed as follows: Supply: Q^S = -20 + 10p Demand: Q^D = 400 - 20p If the government sets a maximum price of $10 per unit,what will be the quantity demanded and quantity supplied?