Question 1 (1 point) In a market economy, prices are determined by: 0 businesses which buy and sell the products 0 consumers and labor unions 0 the interaction of supply and demand 0 decree of government agencies \fLabel the parts of the Supply & Demand Curve. Quantity 1. V Equilibrium 2. Demand 3. Supply 4. V 5. PriceQuestion 3 (1 point) Demand for a product only exists in specific circumstances. Choose THREE answers that correctly reflect demand for any product. Select 3 correct answerls) C] A consumer must not already have the product. [3 A consumer must desire the product. [3 A consumer must be willing to buy the product. [3 A consumer must see advertising for the product. [3 A consumer must be able to purchase the product. Question 4 (1 point) Which of the following is NOT a determinant of a product's demand? 0 Subsidies & Taxes 0 Expected future prices by consumers 0 Changes in prices of substitute products 0 Changes in consumer preferences Question 5 (1 point) Determine whether the statement is describing a Complementary Good or a Substitute Good. CD player/iPod Economy car/Sports car ls used along with another V good. 1. Complementary Good Pillows/mattress 2- Substitute 600d Tires/cars ls used instead of another good. Question 6 (1 point) All of the following factors contributed to demand shifting from D to D' except: 0 consumer expectation of increased future prices for the good 0 an increase in consumer income 0 an increase in the number of buyers in a market O a decrease in the price of a substitute good Question 7 (1 point) Consumers are told that the consumption of cauliflower will significantly reduce the risk of cancer. Which of these scenarios is likely to happen in the cauliflower market? 0 The demand curve will shift right and the price of cauliflower will remain the same. 0 The supply curve will shift to the right and the price of cauliflower will rise. 0 The demand curve will shift to the right and the price of cauliflower will rise. 0 The supply curve will shift to the right and the price of cauliflower will fall. 0 The demand curve will shift to the left and the price of cauliflower will fall. Question 8 (1 point) If Jack's average yearly income increases, and it is observed that his demand for pie has increased, then pie must be considered 0 a determinant of supply 0 a determinant of demand O a normal good C) an inferior good Question 9 (1 point) Don-rid Cum QUANTITY In the graph, what might explain the movement of the demand curve from D1 to D3? 0 a surplus of the product 0 a decrease in the general income of the region Q a shortage of the product O a decrease in the price of a substitute product 0 a decrease in the price of a complementary product Question 10 (1 point) Saved Consumers believe that the market price of laptops will decrease in the coming months. Right now, this will: 0 increase the demand for laptops 0 decrease the demand for laptops 0 decrease the supply of laptops @ increase the supply of laptops Question 11 (1 point) You are the manager of Pizza Planet. Corporate office tells you that the price elasticity of demand for your most popular pizza is very elastic. To increase total revenue, you should do what? 0 increase the price of pizza 0 hold pizza prices constant 0 decrease the price of pizza 0 decrease demand for pizza Question 12 (1 point) Which relationship is the BEST example of the Law of Supply? 0 The quantity of a good supplied is not impacted by price. 0 The quantity of a good supplied falls with no impact on price. O The quantity of a good supplied falls as the price rises. O The quantity of a good supplied rises as the price rises. O The quantity of a good supplied rises as the price falls. Question 13 (1 point) The set of six determinants of supply does NOT include: O Changes in the size of the population 0 Changes in technology 0 Changes in the number of suppliers 0 Changes in the resource costs Question 14 (1 point) Which factor might cause an increase in the supply of a product? 0 a decrease in productivity 0 future expectations of a decrease in demand 0 an increase in the cost of raw materials 0 the introduction of new technology 0 fewer sellers in the marketplace Question 15 (1 point) Tin is needed to make guitar strings. The price of tin decreases, ceteris paribus (all other things constant), what is the likely result? 0 The supply of guitars will increase 0 The quantity demanded for guitars will decrease O The supply of guitars will decrease 0 Demand for silver will increase \fFactors that shift 5 to 5' could include all of the following, except: 0 The government imposed a tax on sellers of this product 0 The price of a key ingredient for the product decreased O The number of sellers decreased 0 The government ended a subsidy on the product Question 17 (1 point) In the graph, what happened to the equilibrium price when the supply curve moved from $1 to 52? Q It did not change. 0 It indicated a decrease in demand. 0 The equilibrium price went down. 0 The equilibrium price went up. 0 It indicated an increase in demand. Question 18 (1 point) IO 20 3O 40 50 60 Widgets Which of these situations is the MOST LIKELY result of a price ceiling being set below the equilibrium price? 0 an increase in equilibrium price 0 a market shortage O a decrease in demand 0 a market surplus Question 19 (1 point) IO 20 30 40 50 60 Widgets Which part of the graph shows the correct answer from the previous question? Previous Question: Which of these situations is the MOST LlKELYresu/t of a price ceiling being set below the equilibrium price? 0 an increase in equilibrium price - a market shortage o a decrease in demand - a market surplus \fQuestion 20 (1 point) If the government sets a minimum wage above equilibrium wage, which of the following is most likely to happen O Wages will fall for company CEOs. Q There will be a shortage of workers in the factor market. 0 The quantity of labor demanded will far exceed the supply of labor. O Unemployment will rise because companies will reduce hiring low wage workers