Question 1

Suppose a shortage for good A exists. Given this information, we know that

Accepted Answer

A)   the price of good A will tend to rise toward the equilibrium level.
B)   the price of good A will tend to fall toward the equilibrium level.
C)   a government price floor should be imposed above the current price so that the market can work more effectively.
D)   a government price ceiling should be imposed above the current price so that the market can work more effectively.

Question 2

Which of the following will shift today's supply curve to the right?

Accepted Answer

A)   Input prices rise.
B)   Sales taxes increase.
C)   Prices are expected to be higher in the future.
D)   Prices are expected to be lower in the future.

Question 3

A shortage will occur when

Accepted Answer

A)   the price equals the market clearing level.
B)   the price is above the market clearing level.
C)   there is an excess quantity supplied.
D)   the price is below the market clearing level.

Question 4

Which of the following would cause an increase in the market supply of drones?

Accepted Answer

A)   a decrease in the demand for drones
B)   an increase in taxes levied on drones
C)   an increase in the cost of components used to make drones
D)   an increase in the number of firms making drones

Question 5

How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?

Accepted Answer

The equilibrium price is determined by t...

Question 6

Which of the following would most likely be considered complements?

Accepted Answer

A)   butter and margarine
B)   rental cars and taxis
C)   plastic wrap and aluminum foil
D)   tennis rackets and tennis balls

Question 7

A demand curve for a normal good

Accepted Answer

A)   slopes upward and to the right.
B)   is constructed based on the assumption that income is rising.
C)   is constructed based on the assumption that an inverse relationship exists between price and income.
D)   shows the inverse relationship between price and quantity demanded.

Question 8

A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________.

Accepted Answer

A)   decrease; increase
B)   decrease; decrease
C)   increase; decrease
D)   increase; increase

Question 9

An decrease in demand is represented by a

Accepted Answer

A)   shift of the demand curve to the left.
B)   shift of the demand curve to the right.
C)   movement down the demand curve.
D)   movement up the demand curve.

Question 10

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

Accepted Answer

A)   $450.
B)   $500.
C)   $600.
D)   $700.

Question 11

A demand curve

Accepted Answer

A)   slopes down because of the inverse relationship between price and quantity demanded.
B)   slopes up because of the direct relationship between price and quantity demanded.
C)   can slope up or down depending on the tastes of the consumer.
D)   is vertical for necessities, upward sloping for luxury goods, and downward sloping for all other goods.

Exam 3: Demand and Supply

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

Correct Answer
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How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?

Correct Answer
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The equilibrium price is determined by t...
View Answer

A shortage will occur when

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A demand curve for a normal good

Correct Answer
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A shortage creates a situation that forces prices to while a surplus creates a situation that forces prices to .

Correct Answer
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Which of the following will shift today's supply curve to the right?

Correct Answer
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Which of the following would cause an increase in the market supply of drones?

Correct Answer
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Suppose a shortage for good A exists. Given this information, we know that

Correct Answer
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Which of the following would most likely be considered complements?

Correct Answer
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A demand curve

Correct Answer
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An decrease in demand is represented by a

Correct Answer
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Exam 3: Demand and Supply

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

Correct AnswerverifiedShow Answer

How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?

Correct AnswerverifiedThe equilibrium price is determined by t...View AnswerShow Answer

A shortage will occur when

Correct AnswerverifiedShow Answer

A demand curve for a normal good

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A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________.

Correct AnswerverifiedShow Answer

Which of the following will shift today's supply curve to the right?

Correct AnswerverifiedShow Answer

Which of the following would cause an increase in the market supply of drones?

Correct AnswerverifiedShow Answer

Suppose a shortage for good A exists. Given this information, we know that

Correct AnswerverifiedShow Answer

Which of the following would most likely be considered complements?

Correct AnswerverifiedShow Answer

A demand curve

Correct AnswerverifiedShow Answer

An decrease in demand is represented by a

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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The equilibrium price is determined by t...
View Answer

Correct Answer
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Correct Answer
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A shortage creates a situation that forces prices to while a surplus creates a situation that forces prices to .

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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