Question 1

When market price is above equilibrium price

Accepted Answer

A)  a shortage is generated.
B)  market price will rise.
C)  quantity supplied is greater than quantity demanded.
D)  None of these choices are correct.

Question 2

The supply curve slopes

Accepted Answer

A)  upward to the right.
B)  upward to the left.
C)  downward to the right.
D)  downward to the left.

Question 3

Quantity Supplied  Price  Quantity Demanded 30$51025$41520$32015$22510$130\begin{array}{ccc}	ext { Quantity Supplied } & 	ext { Price } & 	ext { Quantity Demanded } \30 & \$ 5 & 10 \25 & \$ 4 & 15 \20 & \$ 3 & 20 \15 & \$ 2 & 25 \10 & \$ 1 & 30\end{array} Quantity Supplied 3025201510​ Price $5$4$3$2$1​ Quantity Demanded 1015202530​ 
-Equilibrium price is

Accepted Answer

A)  $5
B)  $4
C)  $3
D)  $2
E)  $1

Question 4

When demand falls and supply remains the same,equilibrium price _______ and equilibrium quantity ________.

Accepted Answer

A)  falls,falls
B)  rises,rises
C)  falls,rises
D)  rises,falls

Question 5

When the demand for loanable funds rises,the amount of money borrowed will ___________.

Accepted Answer

A)  rise
B)  decline
C)  be unchanged

Question 6

If price was set by the government at $4,there would be a price _____________,that would cause a ___________ of _______ units.

Accepted Answer

A)  floor,surplus,8
B)  floor,surplus,10
C)  ceiling,shortage,8
D)  ceiling,shortage,12
E)  ceiling,shortage,14

Question 7

As price rises,quantity supplied

Accepted Answer

A)  rises.
B)  falls.
C)  remains the same.

Question 8

A decrease in supply _____ price and _____ the quantity sold.

Accepted Answer

The answer of A decrease in supply _____ price and...

Question 9

An increase in equilibrium quantity would result from

Accepted Answer

A)  a decrease in supply with no change in demand.
B)  a decrease in supply and a decrease in demand.
C)  an increase in supply with no change in demand.
D)  None of these choices are correct.

Question 10

If the government set a price ceiling of 50 cents for a gallon of gasoline,the most likely consequence would be

Accepted Answer

A)  a surplus of gasoline.
B)  the demand for automobiles fall.
C)  shipping costs rise.
D)  a shortage of gasoline.

Question 11

If a price ceiling is set above the equilibrium price,then

Accepted Answer

A)  prices will fall as soon as the ceiling price is abolished.
B)  prices will remain the same (not rise) when the price ceiling is lifted.
C)  equilibrium price and ceiling prices are two totally different concepts and hence do not affect each other.
D)  prices will begin to rise rapidly when the price ceiling is lifted.

Question 12

When there is a surplus

Accepted Answer

A)  quantity demanded is greater than quantity supplied.
B)  quantity supplied is greater than quantity demanded.
C)  quantity demanded is equal to quantity supplied.

Question 13

Quantity Demanded  Price  Quantity Supplied 30$106440$85550$65060$44070$220\begin{array}{ccc}	ext { Quantity Demanded } & 	ext { Price } & 	ext { Quantity Supplied } \30 & \$ 10 & 64 \40 & \$ 8 & 55 \50 & \$ 6 & 50 \60 & \$ 4 & 40 \70 & \$ 2 & 20\end{array} Quantity Demanded 3040506070​ Price $10$8$6$4$2​ Quantity Supplied 6455504020​ 
-When price is $2

Accepted Answer

A)  there is a surplus.
B)  there is a shortage.
C)  quantity demanded is less than quantity supplied.
D)  price must fall to get to equilibrium.

Question 14

-In the graph shown above,at a price of $3.00

Accepted Answer

A)  there is a shortage.
B)  there is a surplus.
C)  quantity supplied is greater than quantity demanded.
D)  None of these choices are correct.

Question 15

If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head,the price of lettuce will

Accepted Answer

A)  decrease to $.70.
B)  remain at $.80.
C)  decrease to $.75.
D)  be impossible to determine.

Exam 4: Supply and Demand

When the demand for loanable funds rises,the amount of money borrowed will ___________.

Correct Answer
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If price was set by the government at $4,there would be a price _______,that would cause a _ of ___ units.

Correct Answer
verified

-In the graph shown above,at a price of $3.00

Correct Answer
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When there is a surplus

Correct Answer
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The supply curve slopes

Correct Answer
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When market price is above equilibrium price

Correct Answer
verified

$\begin{array}{ccc}\text { Quantity Supplied } & \text { Price } & \text { Quantity Demanded } \\30 & \$ 5 & 10 \\25 & \$ 4 & 15 \\20 & \$ 3 & 20 \\15 & \$ 2 & 25 \\10 & \$ 1 & 30\end{array}$ -Equilibrium price is

Correct Answer
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If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head,the price of lettuce will

Correct Answer
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An increase in equilibrium quantity would result from

Correct Answer
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$\begin{array}{ccc}\text { Quantity Demanded } & \text { Price } & \text { Quantity Supplied } \\30 & \$ 10 & 64 \\40 & \$ 8 & 55 \\50 & \$ 6 & 50 \\60 & \$ 4 & 40 \\70 & \$ 2 & 20\end{array}$ -When price is $2

Correct Answer
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A decrease in supply _ price and _ the quantity sold.

Correct Answer
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When demand falls and supply remains the same,equilibrium price _ and equilibrium quantity __.

Correct Answer
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As price rises,quantity supplied

Correct Answer
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If a price ceiling is set above the equilibrium price,then

Correct Answer
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If the government set a price ceiling of 50 cents for a gallon of gasoline,the most likely consequence would be

Correct Answer
verified

Exam 4: Supply and Demand

When the demand for loanable funds rises,the amount of money borrowed will ___________.

Correct AnswerverifiedShow Answer

If price was set by the government at $4,there would be a price _____________,that would cause a ___________ of _______ units.

Correct AnswerverifiedShow Answer

-In the graph shown above,at a price of $3.00

Correct AnswerverifiedShow Answer

When there is a surplus

Correct AnswerverifiedShow Answer

The supply curve slopes

Correct AnswerverifiedShow Answer

When market price is above equilibrium price

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head,the price of lettuce will

Correct AnswerverifiedShow Answer

An increase in equilibrium quantity would result from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A decrease in supply _____ price and _____ the quantity sold.

Correct AnswerverifiedShow Answer

When demand falls and supply remains the same,equilibrium price _______ and equilibrium quantity ________.

Correct AnswerverifiedShow Answer

As price rises,quantity supplied

Correct AnswerverifiedShow Answer

If a price ceiling is set above the equilibrium price,then

Correct AnswerverifiedShow Answer

If the government set a price ceiling of 50 cents for a gallon of gasoline,the most likely consequence would be

Correct AnswerverifiedShow Answer

Correct Answer
verified

If price was set by the government at $4,there would be a price _______,that would cause a _ of ___ units.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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A decrease in supply _ price and _ the quantity sold.

Correct Answer
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When demand falls and supply remains the same,equilibrium price _ and equilibrium quantity __.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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