1. It is at this point that the agreeable price for both buyers and sellers are the same, and their respective quantity demanded and supply are also the same

a. demand gap.

b. supply gap.

c. intersection point.

d. equilibrium.

2. A leftward movement along the demand curve for peanuts might be caused by any of the following except*

a. decrease in average household income.

b. an increase in the price of farm labor.

c. A decrease in the acreage devoted to peanut production.

d. An increase in the price of fertilizer

3.The demand curve for a good is horizontal when it is:*

a. a perfectly inelastic good.

b. a unitary elastic good.

c. a perfectly elastic good.

d. an inferior good.

4. When total revenue of the seller decreased caused by an increase in price, the demand for the product is said to be _______________.

a. Inelastic

b. unit elastic

c. elastic

d. perfectly elastic

5. Supply is said to be inelastic when the quantity supplied changes*

a. more than the change in its price.

b. less than the change in it price. 2

c. equal to the change in its price.

d. none of the above.

6. This good is more elastic in supply.*

a. milk

b. hamburger

c. corn

d. housing

7. Elasticity of supply tends to be greater when*

a. inputs are specialized.

b. time period allowed for adjustment is fairly long.

c. degree of advertising is great.

d. demand for the product is inelastic.

8. The supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time*

a. production techniques become more expensive.

b. new firms can enter the industry and old firms can increase their plant size.

c. producers become more competitive.

d. consumers become more demanding.

9. A price elasticity determinant common for both demand and supply is*

a.availability of substitutes.

b.proportion of income/budget spent on a good/resource.

c.time.

d.none of the above

From 10-21

Please refer to the attached image

P(B) P (B) 40 5 QS 80 Qd -10