Question
A shift of a demand curve to the right, all other things unchanged, will: Question 1 options: increase equilibrium price and quantity. decrease equilibrium price
A shift of a demand curve to the right, all other things unchanged, will:
Question 1 options:
increase equilibrium price and quantity. | |
decrease equilibrium price and quantity. | |
decrease quantity and increase price. | |
increase quantity and decrease price. |
Question 2 (10 points)
If the current price is above the equilibrium price, we would expect:
Question 2 options:
quantity demanded to exceed quantity supplied. | |
upward pressure on price. | |
quantity supplied to exceed quantity demanded. | |
no change in the market price. |
Question 3 (10 points)
Demand is defined as:
Question 3 options:
an amount that is purchased at a specific price, given supply. | |
a schedule that establishes the price of a good. | |
a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged. | |
the amount that will be bought at a specific price. |
Question 4 (10 points)
The primary difference between a change in demand and a change in the quantity demanded is:
Question 4 options:
a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. | |
a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. | |
both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. | |
both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions. |
Question 5 (10 points)
A negative relationship between the quantity demanded and price is called the law of ______.
Question 5 options:
demand | |
diminishing marginal returns | |
market clearing | |
supply |
Question 6 (10 points)
The relationship between the quantity of a good or service sellers are willing and able to offer for sale and the independent variables that determine quantity is:
Question 6 options:
supply. | |
demand. | |
equilibrium. | |
disequilibrium. |
Question 7 (10 points)
A price below the equilibrium price will:
Question 7 options:
result in pressure for price to rise. | |
result in a surplus. | |
never be the case. | |
result in pressure for price to fall. |
Question 8 (10 points)
It is true that the equilibrium quantity will always go up if supply:
Question 8 options:
and demand both increase. | |
increases and demand decreases. | |
and demand both decrease. | |
decreases and demand remains unchanged. |
Question 9 (10 points)
The intersection of the supply and demand curves indicates:
Question 9 options:
the equilibrium solution in the market. | |
a surplus that will cause the price to fall. | |
a shortage that will cause the price to rise. | |
the quantity demanded exceeds the quantity supplied. |
Question 10 (10 points)
A decrease in supply means:
Question 10 options:
a shift to the left of the entire supply curve. | |
moving downward (to the left) along the supply curve with lower prices. | |
less will be demanded at every price. | |
more will be supplied at every price. |
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