Question 1

Graphically,an increase in the number of vegetarians will cause the demand curve for tofu (a meat substitute)to:

Accepted Answer

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

Question 2

The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:

Accepted Answer

A)  market demand curve. 
B)  consumer surplus curve. 
C)  average cost curve. 
D)  market supply curve. 
A)  market demand curve. 
B)  consumer surplus curve. 
C)  average cost curve. 
D)  market supply curve.

Question 3

Which of the following would NOT shift the demand for good A?

Accepted Answer

A)  Drop in price of good A 
B)  Drop in price of good B 
C)  Consumer income 
D)  Change in the level of advertising of good A 
A)  Drop in price of good A 
B)  Drop in price of good B 
C)  Consumer income 
D)  Change in the level of advertising of good A

Question 4

The minimum wage:

Accepted Answer

A)  is an example of a price floor. 
B)  leads to an increase in the number of people employed in unskilled jobs. 
C)  leads to a decrease in the number of people employed in skilled jobs. 
D)  causes an increase in social welfare. 
A)  is an example of a price floor. 
B)  leads to an increase in the number of people employed in unskilled jobs. 
C)  leads to a decrease in the number of people employed in skilled jobs. 
D)  causes an increase in social welfare.

Question 5

The supply function:

Accepted Answer

A)  describes how much of good X will be produced at an alternative price of good X, given all the other variables being constant. 
B)  recognizes that the quantity of a good produced depends on its price and supply shifters. 
C)  shows the relationship between the quantity supplied of X and variables other than its price. 
D)  does not include technology. 
A)  describes how much of good X will be produced at an alternative price of good X, given all the other variables being constant. 
B)  recognizes that the quantity of a good produced depends on its price and supply shifters. 
C)  shows the relationship between the quantity supplied of X and variables other than its price. 
D)  does not include technology.

Question 6

Suppose market demand and supply are given by Qd = 100 − 2P and Qs = 5 + 3P.If a price ceiling of $15 is imposed,what will be the resulting full economic price?

Accepted Answer

A)  $19 
B)  $21 
C)  $6 
D)  $25 
A)  $19 
B)  $21 
C)  $6 
D)  $25

Question 7

Suppose market demand and supply are given by Qd = 300 − 4P and Qs = −50 + 3P.The equilibrium price is:

Accepted Answer

A)  $35. 
B)  $40. 
C)  $50. 
D)  $60. 
A)  $35. 
B)  $40. 
C)  $50. 
D)  $60.

Question 8

In 1987 a 386 PC sold at a price of $6,995.Five years later,you could purchase essentially the same computer for $1,495.Today,you can purchase a faster computer for a fraction of the initial price of a slower 386 PC.
a.Why have computer prices fallen so dramatically?
b.What impact,if any,do you think the growing use of the Internet will have on the price of computers?

Accepted Answer

a.When the PC with a 386 chip was initia

Question 9

The government decides that a specific scarce good should be provided for everyone who wants it at a price of zero and passes a law making it illegal to buy or sell the good.However,people can give the good away.This good is highly desirable for some of the population.What effect will this law have on the market?
 What would happen in this market if the law were removed?

Accepted Answer

The new legislation is essentially a pri

Graphically,an increase in the number of vegetarians will cause the demand curve for tofu (a meat substitute)to:

The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:

Which of the following would NOT shift the demand for good A?

The minimum wage:

The supply function:

Suppose market demand and supply are given by Q^d = 100 − 2P and Q^s = 5 + 3P.If a price ceiling of $15 is imposed,what will be the resulting full economic price?

Suppose market demand and supply are given by Q^d = 300 − 4P and Q^s = −50 + 3P.The equilibrium price is:

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

Exam 2: Market Forces: Demand and Supply

Graphically,an increase in the number of vegetarians will cause the demand curve for tofu (a meat substitute)to:

The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:

Which of the following would NOT shift the demand for good A?

The minimum wage:

The supply function:

Suppose market demand and supply are given by Qd = 100 − 2P and Qs = 5 + 3P.If a price ceiling of $15 is imposed,what will be the resulting full economic price?

Suppose market demand and supply are given by Qd = 300 − 4P and Qs = −50 + 3P.The equilibrium price is:

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

Suppose market demand and supply are given by Q^d = 100 − 2P and Q^s = 5 + 3P.If a price ceiling of $15 is imposed,what will be the resulting full economic price?

Suppose market demand and supply are given by Q^d = 300 − 4P and Q^s = −50 + 3P.The equilibrium price is: