Demand, Supply and Elasticity - Quiz Essay Example
Week 2 : Demand, Supply and Elasticity - Quiz
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1. (TCO 2) A demand curve (Points : 1) shows the relationship between price and quantity supplied. indicates the quantity demanded at each price in a series of prices. graphs as an upsloping line. shows the relationship between income and spending.
2. (TCO 2) Which of the following will not cause the demand for product K to change? (Points : 1) A change in the price of close-substitute product J An increase in consumer incomes A change in the price of K A change in consumer tastes
3. (TCO 2) If X is a normal good, a rise in money income will shift the (Points : 1) supply curve for X to the left. supply curve for X to the right. demand curve for X to the left. demand curve for X to the right.
4. (TCO 2) Suppose that tacos and pizza are substitutes and that soda and pizza are complements. We would expect an increase in the price of pizza to (Points : 1) reduce the demand for tacos and increase the demand for sodas. reduce the demand for soda and increase the demand for tacos. increase the demand for both soda and tacos. reduce the demand for both soda and tacos.
5. (TCO 2) Increasing marginal cost of production explains (Points : 1) the law of demand. the income effect. why the supply curve is upsloping. why the demand curve is downsloping.
6. (TCO 2) The price elasticity of demand is generally (Points : 1) negative, but the minus sign is ignored. positive, but the plus sign is ignored. positive for normal goods and negative for inferior goods. positive because price and quantity demanded are inversely related.
7. (TCO 2) If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then
Top of Form
Time Remaining:
1. (TCO 2) A demand curve (Points : 1) shows the relationship between price and quantity supplied. indicates the quantity demanded at each price in a series of prices. graphs as an upsloping line. shows the relationship between income and spending.
2. (TCO 2) Which of the following will not cause the demand for product K to change? (Points : 1) A change in the price of close-substitute product J An increase in consumer incomes A change in the price of K A change in consumer tastes
3. (TCO 2) If X is a normal good, a rise in money income will shift the (Points : 1) supply curve for X to the left. supply curve for X to the right. demand curve for X to the left. demand curve for X to the right.
4. (TCO 2) Suppose that tacos and pizza are substitutes and that soda and pizza are complements. We would expect an increase in the price of pizza to (Points : 1) reduce the demand for tacos and increase the demand for sodas. reduce the demand for soda and increase the demand for tacos. increase the demand for both soda and tacos. reduce the demand for both soda and tacos.
5. (TCO 2) Increasing marginal cost of production explains (Points : 1) the law of demand. the income effect. why the supply curve is upsloping. why the demand curve is downsloping.
6. (TCO 2) The price elasticity of demand is generally (Points : 1) negative, but the minus sign is ignored. positive, but the plus sign is ignored. positive for normal goods and negative for inferior goods. positive because price and quantity demanded are inversely related.
7. (TCO 2) If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then