Supply and Demand and Points Question

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  • Topic: Supply and demand, Economic equilibrium, Demand curve
  • Pages : 10 (1915 words )
  • Download(s) : 16
  • Published : April 8, 2013
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Question 1
1.  
According to the law of demand states that, other things remaining unchanged:  Answer
| a.| as price decreases, demand decreases.|
| b.| as price increases, demand increases.|
| c.| price has no effect on quantity demanded.|
| d.| as price decreases, quantity demanded increases.|
| e.| None of the above.|
1 points  
Question 2
1.  
At any price, the market demand curve:
Answer
| a.| is flatter than the flattest individual demand curve.| | b.| has a slope that is the average of the individual demand curve slopes.| | c.| is steeper than the steepest individual demand curve.| | d.| has a horizontal intercept equal to the average of the individual demand curve horizontal intercepts.| | e.| None of the above.|

1 points  
Question 3
1.  
The market demand curve for any good is:
Answer
| a.| independent of individual consumers’ demand curves for the good.| | b.| the vertical summation of individual consumers’ demand curves.| | c.| the horizontal summation of individual consumers’ demand curves.| | d.| derived from the firms’ marginal cost curves.|

| e.| None of the above.|
1 points  
Question 4
1.  
An increase in per-capita income will probably result in:
Answer
| a.| an increase in quantity demanded.|
| b.| an increase in demand.|
| c.| a decrease in quantity demanded.|
| d.| a decrease in demand.|
| e.| Answers a and b are correct.|
1 points  
Question 5
1.  
Suppose the demand for good x is given by Qxd= A + βxPx + βyPy + βMM. By the law of demand, the value of βx must be: Answer
| a.| between zero and one.|
| b.| greater than one.|
| c.| negative.|
| d.| less than negative one.|
| e.| between zero and negative one.|
1 points  
Question 6
1.  
Suppose the demand for good x is given by Qxd= A + βxPx + βyPy + βMM. If βy is negative, then good y is:  Answer
| a.| a normal good.|
| b.| an inferior good.|
| c.| a complement.|
| d.| a substitute.|
| e.| None of the above.|
1 points  
Question 7
1.  
The consumption of goods X and Y is related. Which of the following would not result in a change in demand for good X? Answer
| a.| A change in the price of good Y.|
| b.| A change in consumer income.|
| c.| A change in consumer expectations.|
| d.| A change in the price of good X.|
| e.| All of the above will result in a change in the demand for good X.| 1 points  
Question 8
1.  
For an inferior good, an increase in consumer income can be illustrated as a: Answer
| a.| a shift to the left of the demand curve.|
| b.| a shift to the right of the demand curve.|
| c.| a movement downward along the demand curve.|
| d.| a movement upward along the demand curve.|
| e.| None of the above.|
1 points  
Question 9
1.  
Suppose that goods F and G are complements. A decrease in the price of F will result in: Answer
| a.| a left-shift in the demand curve for good G.|
| b.| a right-shift in the demand curve for good G.|
| c.| a movement upward and to the left along the demand curve for good G.| | d.| a movement downward and to the right along the demand curve for good G.| | e.| None of the above.|
1 points  
Question 10
1.  
A decrease in the demand for a good is depicted as:
Answer
| a.| a downward movement along a stationary demand curve.| | b.| an upward movement along a stationary demand curve.| | c.| a shift to the right of the demand curve.|
| d.| a shift to the left of the demand curve.|
| e.| None of the above.|
1 points  
Question 11
1.  
Suppose there are two consumers who demand apples.  One consumer considers apples and oranges complements.  The other consumer considers apples and oranges substitutes. An increase in the price of oranges will: Answer

| a.| increase the market...
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