QUESTION 1

You sell 20 cups of lemonade on Saturdays for usually $1 each. Your neighbor gives you a bag of lemons and you discount your price to have more quantity demanded. With more quantity demanded you sell:

1. 30 cups for 50 cents each
2. 30 cups for $2 each
3. 10 cups for $2 each
4. 10 cups for 50 cents each

5 points

QUESTION 2

The law of supply says:

1. making many means making it cheap
2. making something first means making it best
3. learning from competitors' mistakes costs nothing
4. less price means less quantity supplied

5 points

QUESTION 3

The law of demand says:

1. buying earlier means paying less
2. more income means more units sold
3. any advertising is good advertising
4. more quantity is demanded when price falls

5 points

QUESTION 4

Changes in the following determinants will decrease demand except:

1. less popularity
2. more income
3. pricier complements
4. less buyers

5 points

QUESTION 5

A shortage happens because quantity supplied is too _ while quantity demanded is too _

1. much, much
2. little, little
3. much, little
4. little, much

5 points

QUESTION 6

The difference between the rationing price at 10Q and cost is $

1. 2
2. 3
3. 5
4. 6
5. 8

5 points

QUESTION 7

A surplus happens because quantity supplied is too _ while quantity demanded is too_

1. much, much
2. little, little
3. much, little
4. little, much

5 points

QUESTION 8

The price needed to ration quantity demanded to 10 is $:

1. 4
2. 7
3. 8
4. 10
5. 11

5 points

QUESTION 9

The supply and the larger demand curve reach equilibrium at:

1. 10Q & $10
2. 25Q & $7
3. 30Q & $8
4. 40Q & $7
5. 40Q & $10

5 points

QUESTION 10

Changes in the following determinants will increase supply except:

1. new technology
2. cheaper factors
3. cheaper related goods
4. more taxes
5. more sellers

5 points

QUESTION 11

Price floors obstruct markets only when they are _ than equilibrium price.

1. higher than
2. equal to
3. lower than
4. lower than or equal to

5 points

QUESTION 12

Changes in the following determinants will decrease supply except:

1. cheaper factors
2. pricier related goods
3. more taxes
4. less sellers
5. worse expectations

5 points

QUESTION 13

You grow local organic tomatoes in your backyard for extra cash and sell 10 pounds per week for $2 a pound. A neighbor gives you some free fertilizer and increases your supply, which causes you to sell:

1. 15 pounds at $3 each
2. 5 pounds at $1 each
3. 15 pounds at $1 each
4. 5 pounds at $3 each

5 points

QUESTION 14

Changes in the following determinants will increase demand except:

1. more popularity
2. more income
3. cheaper complements
4. fewer buyers

5 points

QUESTION 15

If starting with 30Q & $8, less quantity demanded is shown by:

1. 10Q & $4
2. 10Q & $10
3. 25Q & $7
4. 40Q & $7
5. 40Q & $10

5 points

QUESTION 16

Price ceilings obstruct markets only when they are _ than equilibrium price.

1. higher than
2. equal to
3. lower than
4. higher than or equal to

5 points

QUESTION 17

At equilibrium the seller's price is _ the buyer's price and quantity supplied is _ quantity demanded.

1. higher than, higher than
2. lower than, lower than
3. higher than, lower than
4. lower than, high than
5. equal, equal

5 points

QUESTION 18

The supply and the smaller demand curve reach equilibrium at:

1. 10Q & $10
2. 25Q & $7
3. 30Q & $8
4. 40Q & $7
5. 40Q & $10

5 points

QUESTION 19

If the quantity is restricted to 10Q then the cost of each is $:

1. 2
2. 4
3. 7
4. 8
5. 10

5 points

QUESTION 20

You sell 20 cups of lemonade on Saturdays for usually $1 each. This Saturday a heatwave is forecasted and you expect more demand. With more demand you sell:

1. 30 cups for 50 cents each
2. 30 cups for $2 each
3. 10 cups for $2 each
4. 10 cups for 50 cents each