1. The firm supplied 6,000 tables at $20 each. This year, the company supplied the same quantity of tables at $17 each. Based on this evidence, the firm has experienced

a. a decrease in supply

b. an increase in supply

c. an increase in the quantity supplied.

d. a decrease in the quantity supplied

2. Any given demand or supply curve is based on the ceteris paribus assumption that

.

a. everything is variable

b. no one knows which variables will change and which will remain

c. all else is held equal

d. what is true for the individual is not necessarily true for the whole

3. A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and_______ , shown on the horizontal

a. quantity demanded

b. quantity

c. quantity supplied

d. supply

4. A demand curve shows the relationship between price and_______ on a graph.

a. quantity consumed

b. quantity produced

c. quantity demanded

d. costs

5. When quantity demanded decreases in response to a change in price:

a. the demand curve shifts to the right

b. the demand curve shifts to the left

c. there is a movement up along the demand

d. there is a movement down along the demand

6. The ______________ is the only price where quantity demanded is equal to quantity

a. market price

b. horizontal axis intercept

c. vertical axis intercept

d. equilibrium price

7. If a firm faces___________ , while the prices for the output the firm produces remain unchanged, a firm's profits will decrease.

a. higher demand

b. equilibrium

c. higher cost of production

d. a shift in demand

8.A severe freeze has once again damaged the Florida orange The impact on the market for orange juice will be a leftward shift of:

a. the supply curve

b. the demand curve, as consumers try to economize because of the shortage.

c. both the supply and demand

d. the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price

9._________________are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.

a. Rent control

b. Price ceilings

c. Subsidies

d. Price floors

10. The price equilibrium is $12. At a price of $7, there will be _________

a. ceteris paribus

b. excess demand

c. excess supply

d. a price ceiling