Question 1

Suppose the supply curve for a product is given by

Accepted Answer

@#IMG-DLM& and @#IMG-DLM& , @#IMG-DLM& .
a.How much X is produced?
b.W

Question 2

Which of the following pairs of goods are probably complements?

Accepted Answer

A) televisions and roller skates. 
B) frozen yogurt and ice cream. 
C) steak and chicken. 
D) hamburgers and ketchup. 
A) televisions and roller skates. 
B) frozen yogurt and ice cream. 
C) steak and chicken. 
D) hamburgers and ketchup.

Question 3

In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P.A price floor of $9 will result in a

Accepted Answer

A) shortage of 30 units. 
B) shortage of 12 units. 
C) surplus of 30 units. 
D) surplus of 12 units. 
A) shortage of 30 units. 
B) shortage of 12 units. 
C) surplus of 30 units. 
D) surplus of 12 units.

Question 4

For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve to:

Accepted Answer

A) become flatter. 
B) become steeper. 
C) shift to the left. 
D) shift to the right. 
A) become flatter. 
B) become steeper. 
C) shift to the left. 
D) shift to the right.

Question 5

Consider the market for two goods that are substitutes, such as pens and pencils.If a technological breakthrough reduced the cost of producing pens:
a.What would happen to the supply of pens?
b.What would happen to the price of pens and the quantity exchanged?
c.What effect would this change in the price of pens have on the market for pencils?

Accepted Answer

a.The cost of producing pens will be red

Question 6

Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X.If advertising on good X increases by $10,000, then the demand for X will

Accepted Answer

A) decrease by $20,000. 
B) decrease by $100,000. 
C) increase by $100,000. 
D) increase by $20,000. 
A) decrease by $20,000. 
B) decrease by $100,000. 
C) increase by $100,000. 
D) increase by $20,000.

Question 7

The law of demand states that, holding all else constant:

Accepted Answer

A) as price falls, demand will fall also. 
B) as price rises, demand will also rise. 
C) price has no effect on quantity demanded. 
D) as price falls, quantity demanded rises. 
A) as price falls, demand will fall also. 
B) as price rises, demand will also rise. 
C) price has no effect on quantity demanded. 
D) as price falls, quantity demanded rises.

Question 8

The seller side of the market is known as the:

Accepted Answer

A) income side. 
B) demand side. 
C) supply side. 
D) seller side. 
A) income side. 
B) demand side. 
C) supply side. 
D) seller side.

Question 9

In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P.A price ceiling of $3 will result in a

Accepted Answer

A) shortage of 30 units. 
B) shortage of 15 units. 
C) surplus of 30 units. 
D) surplus of 12 units. 
A) shortage of 30 units. 
B) shortage of 15 units. 
C) surplus of 30 units. 
D) surplus of 12 units.

Question 10

A change in income will not lead to:

Accepted Answer

A) a movement along the demand curve. 
B) a leftward shift of the demand curve. 
C) a rightward shift of the demand curve. 
D) all of the statements associated with the question are correct. 
A) a movement along the demand curve. 
B) a leftward shift of the demand curve. 
C) a rightward shift of the demand curve. 
D) all of the statements associated with the question are correct.

Question 11

Good X is a normal good if an increase in income leads to

Accepted Answer

A) an increase in the supply for good X. 
B) an increase in the demand for good X. 
C) a decrease in the demand for good X. 
D) a decrease in the supply for good X. 
A) an increase in the supply for good X. 
B) an increase in the demand for good X. 
C) a decrease in the demand for good X. 
D) a decrease in the supply for good X.

Question 12

Which of the following are least likely to be substitutes?

Accepted Answer

A) Chicken and beef. 
B) Cars and trucks. 
C) Automobile and housing. 
D) Automobile and gasoline. 
A) Chicken and beef. 
B) Cars and trucks. 
C) Automobile and housing. 
D) Automobile and gasoline.

Question 13

Graphically, a decrease in advertising will cause the demand curve to:

Accepted Answer

A) become steeper. 
B) shift rightward. 
C) become flatter. 
D) shift leftward. 
A) become steeper. 
B) shift rightward. 
C) become flatter. 
D) shift leftward.

Question 14

Which of the following is probably not a normal good?

Accepted Answer

A) Designer jeans. 
B) Diamond rings. 
C) Intercity passenger bus travel. 
D) New automobiles. 
A) Designer jeans. 
B) Diamond rings. 
C) Intercity passenger bus travel. 
D) New automobiles.

Question 15

Suppose the supply of good X is given by QSx = 10 + 2Px.How many units of good X are produced if the price of good X is 20?

Accepted Answer

A) 10. 
B) 20. 
C) 30. 
D) None of the statements associated with this question are correct. 
A) 10. 
B) 20. 
C) 30. 
D) None of the statements associated with this question are correct.

Question 16

Changes in the price of good A leads to a change in:

Accepted Answer

A) demand of good A. 
B) demand of good B. 
C) the quantity demanded of good A. 
D) the quantity demanded of good B. 
A) demand of good A. 
B) demand of good B. 
C) the quantity demanded of good A. 
D) the quantity demanded of good B.

Question 17

If demand increases, then the

Accepted Answer

A) demand curve shifts to the left. 
B) demand curve shifts to the right. 
C) equilibrium price goes down. 
D) equilibrium quantity goes down. 
A) demand curve shifts to the left. 
B) demand curve shifts to the right. 
C) equilibrium price goes down. 
D) equilibrium quantity goes down.

Question 18

Suppose both supply and demand increase.What effect will this have on the equilibrium price?

Accepted Answer

A) it will fall. 
B) it will rise. 
C) it may rise or fall. 
D) it will remain the same. 
A) it will fall. 
B) it will rise. 
C) it may rise or fall. 
D) it will remain the same.

Question 19

Good X is an inferior good if a decrease in income leads to

Accepted Answer

A) an increase in the supply of good X. 
B) a decrease in the supply of good X. 
C) an increase in the demand for good X. 
D) a decrease in the demand for good X. 
A) an increase in the supply of good X. 
B) a decrease in the supply of good X. 
C) an increase in the demand for good X. 
D) a decrease in the demand for good X.

Question 20

An ad valorem tax causes supply curve to:

Accepted Answer

A) shift to the right. 
B) become flatter. 
C) become steeper. 
D) shift to the left. 
A) shift to the right. 
B) become flatter. 
C) become steeper. 
D) shift to the left.

Suppose the supply curve for a product is given by

Which of the following pairs of goods are probably complements?

In a competitive market, the market demand is Q^d = 60 - 6P and the market supply is Q^s = 4P.A price floor of $9 will result in a

For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve to:

Suppose the demand for X is given by Q_x^d = 100 - 2P_X + 4P_Y + 10M + 2A, where P_X represents the price of good X, P_Y is the price of good Y, M is income and A is the amount of advertising on good X.If advertising on good X increases by $10,000, then the demand for X will

The law of demand states that, holding all else constant:

The seller side of the market is known as the:

In a competitive market, the market demand is Q^d = 60 - 6P and the market supply is Q^s = 4P.A price ceiling of $3 will result in a

A change in income will not lead to:

Good X is a normal good if an increase in income leads to

Which of the following are least likely to be substitutes?

Graphically, a decrease in advertising will cause the demand curve to:

Which of the following is probably not a normal good?

Suppose the supply of good X is given by Q^S_x = 10 + 2P_x.How many units of good X are produced if the price of good X is 20?

Changes in the price of good A leads to a change in:

If demand increases, then the

Suppose both supply and demand increase.What effect will this have on the equilibrium price?

Good X is an inferior good if a decrease in income leads to

An ad valorem tax causes supply curve to:

The Fundamentals of Managerial Economics

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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Exam 2: Market Forces: Demand and Supply

Suppose the supply curve for a product is given by

Which of the following pairs of goods are probably complements?

In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P.A price floor of $9 will result in a

For a wood furniture manufacturer, an increase in the cost of lumber will cause the supply curve to:

Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X.If advertising on good X increases by $10,000, then the demand for X will

The law of demand states that, holding all else constant:

The seller side of the market is known as the:

In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P.A price ceiling of $3 will result in a

A change in income will not lead to:

Good X is a normal good if an increase in income leads to

Which of the following are least likely to be substitutes?

Graphically, a decrease in advertising will cause the demand curve to:

Which of the following is probably not a normal good?

Suppose the supply of good X is given by QSx = 10 + 2Px.How many units of good X are produced if the price of good X is 20?

Changes in the price of good A leads to a change in:

If demand increases, then the

Suppose both supply and demand increase.What effect will this have on the equilibrium price?

Good X is an inferior good if a decrease in income leads to

An ad valorem tax causes supply curve to:

The Fundamentals of Managerial Economics

Quantitative Demand Analysis

The Theory of Individual Behavior

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

In a competitive market, the market demand is Q^d = 60 - 6P and the market supply is Q^s = 4P.A price floor of $9 will result in a

Suppose the demand for X is given by Q_x^d = 100 - 2P_X + 4P_Y + 10M + 2A, where P_X represents the price of good X, P_Y is the price of good Y, M is income and A is the amount of advertising on good X.If advertising on good X increases by $10,000, then the demand for X will

In a competitive market, the market demand is Q^d = 60 - 6P and the market supply is Q^s = 4P.A price ceiling of $3 will result in a

Suppose the supply of good X is given by Q^S_x = 10 + 2P_x.How many units of good X are produced if the price of good X is 20?