Question 1

Assume that the demand schedule for product C is downsloping.If the price of C falls from $2.00 to $1.75:

Accepted Answer

A)  a smaller quantity of C will be demanded.
B)  a larger quantity of C will be demanded.
C)  the demand for C will increase.
D)  the demand for C will decrease.

Question 2

When an economy achieves both allocative and productive efficiency, it implies that there is:

Accepted Answer

A)  income equality.
B)  price stability.
C)  full production.
D)  fixed technology.

Question 3

You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (1)  the demand (D)  for, or supply (S)  of, X, (2)  the equilibrium price (P)  of X and (3)  the equilibrium quantity (Q)  of X.Refer to the above.An increase in the price of a product which is a complement (in consumption)  to X will:

Accepted Answer

A)  decrease S, decrease P, and decrease Q.
B)  increase D, increase P, and increase Q.
C)  decrease D, decrease P, and decrease Q.
D)  increase D, increase P, and decrease Q.

Question 4

Which of the following is true of a demand curve?

Accepted Answer

A)  It shows the relationship between price and quantity demanded.
B)  It indicates the quantity demanded at each of a series of possible prices during a specified time period.
C)  It is downward sloping.
D)  All of the choices are correct.

Question 5

Price floors and ceiling prices:

Accepted Answer

A)  both cause shortages.
B)  both cause surpluses.
C)  cause the supply and demand curves to shift until equilibrium is established.
D)  interfere with the rationing function of prices.

Question 6

The law of demand is illustrated by a demand curve that is:

Accepted Answer

A)  vertical.
B)  horizontal.
C)  upward sloping.
D)  downward sloping.

Question 7

An "increase in the quantity supplied" suggests a:

Accepted Answer

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

Question 8

The equation for the demand curve in the above diagram:

Accepted Answer

A)  is P = 70 - Q.
B)  is P = 35 - 2Q.
C)  is P = 35 - .5Q.
D)  cannot be determined from the information given.

Question 9

An effective price floor on wheat will:

Accepted Answer

A)  force otherwise profitable farmers out of business.
B)  result in a shortage of wheat.
C)  result in a surplus of wheat.
D)  clear the market for wheat.

Question 10

Assuming conventional supply and demand curves, changes in the determinants of supply and demand will:

Accepted Answer

A)  in all likelihood alter both equilibrium price and quantity.
B)  alter equilibrium quantity, but not equilibrium price.
C)  alter equilibrium price, but not equilibrium quantity.
D)  have no effect upon equilibrium price or quantity.

Question 11

Refer to the table below.  If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

Accepted Answer

A)  $11
B)  $12
C)  $13
D)  $14

Exam 3: B: Demand, Supply, and Market Equilibrium

The equation for the demand curve in the above diagram:

Correct Answer
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Price floors and ceiling prices:

Correct Answer
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Assuming conventional supply and demand curves, changes in the determinants of supply and demand will:

Correct Answer
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When an economy achieves both allocative and productive efficiency, it implies that there is:

Correct Answer
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Assume that the demand schedule for product C is downsloping.If the price of C falls from $2.00 to $1.75:

Correct Answer
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An effective price floor on wheat will:

Correct Answer
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Which of the following is true of a demand curve?

Correct Answer
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Refer to the table below. If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

Correct Answer
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An "increase in the quantity supplied" suggests a:

Correct Answer
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Correct Answer
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The law of demand is illustrated by a demand curve that is:

Correct Answer
verified

Exam 3: B: Demand, Supply, and Market Equilibrium

The equation for the demand curve in the above diagram:

Correct AnswerverifiedShow Answer

Price floors and ceiling prices:

Correct AnswerverifiedShow Answer

Assuming conventional supply and demand curves, changes in the determinants of supply and demand will:

Correct AnswerverifiedShow Answer

When an economy achieves both allocative and productive efficiency, it implies that there is:

Correct AnswerverifiedShow Answer

Assume that the demand schedule for product C is downsloping.If the price of C falls from $2.00 to $1.75:

Correct AnswerverifiedShow Answer

An effective price floor on wheat will:

Correct AnswerverifiedShow Answer

Which of the following is true of a demand curve?

Correct AnswerverifiedShow Answer

Refer to the table below. If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

Correct AnswerverifiedShow Answer

An "increase in the quantity supplied" suggests a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The law of demand is illustrated by a demand curve that is:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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