Economics Supply and Demand Questionnaire

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The following table shows the supply and demand schedules for crude oil. Based on this information,
the equilibrium price is
Price
Quantity Demanded
Quantity Supplied
26
14
10
27
13
11
28
12
12
29
11
13
30
10
14
O $28.
$29.
O $27.
O $26.
When we draw a supply curve for automobiles, which of the following is allowed to vary at different
points along the supply curve?
The cost of inputs, such as steel.
The number of suppliers of automobiles in the industry.
The technology available to suppliers of automobiles.
The price of automobiles.
The price of computer memory chips goes up. Accordingly in the market for computers:
the demand curve will shift to the left, and the supply curve will also shift to the left.
the demand curve will shift to the right, reflecting the higher price of computer chips.
the supply curve will shift to left as costs of production rise.
the supply curve will shift to right as costs of production rise.
If at a price of $120 a pair, the quantity of shoes demanded is 10,000 pairs and the quantity of shoes
supplied is 15,000 pairs, then which of the following must be true?
There is an excess supply of shoes.
The equilibrium price of shoes is less than $120 a pair.
Absent any impediments to price, the price of shoes will be falling.
All of the above.
The amount a seller receives for a good minus the minimum amount he/she is willing to accept, is
referred to as:
consumer surplus.
producer surplus.
total surplus.
gains from trade.
If “Generic Soda” has a lot of substitutes, we would expect the demand curve to be:
relatively flat.
relatively steep.
neither flat nor steep.
vertical.
Question 2
1 pts
During the last few decades, health officials have argued that eating too much red meat might have
harmful health effects. As a result, there has been a significant decrease in the amount of beef
produced and consumed. The explanation for this is that:
beef producers, concerned about consumer health, reduced their beef production.
government officials, concerned about consumer health, ordered beef producers to reduce their beef
production.
individual consumers, concerned about their own health, reduced their demand for beef, which lowered the
price of beef, and reduced the equilibrium quantity of beef consumed.
anti-beef protesters made it difficult for beef producers to market their product to consumers.
Question 15
1 pts
Suppose that tea and coffee are substitutes. Assume that a frost destroys nearly two-thirds of the
world coffee crop. According to supply and demand models, this should have resulted in a(n):
increase in the demand for coffee.
decrease in the demand for coffee.
increase in the price of tea.
decrease in the price of tea.
Question 5
1 pts
Suppose that college enrollment increases. What would you expect to happen to the price of college
textbooks?
The price of textbooks will be unaffected since the market for a college education is unrelated to the market
for college textbooks.
The price of textbooks should increase because a college education and college textbooks are substitutes.
a
The price of textbooks should decrease because a college education and college textbooks are complements.
The price of textbooks should increase because a college education and college textbooks are complements.
Question 6
1 pts
Suppose that milk has a market equilibrium price of $4.00 a gallon and the U.S. government
decreases the maximum legal price allowed from $3.50 a gallon to $2.00 a gallon. What will happen?
Land used for wheat farming will be turned into dairy farms.
There will be a greater shortage of milk.
The supply curve of milk will shift to right to establish a new equilibrium price at the price ceiling.
Absolutely nothing since the price ceiling is below the equilibrium price.
Question 7
1 pts
In recent years the price of laptops has fallen even as the number of laptops sold has increased. The
implication is that:
the law of supply and demand is sometimes violated.
supply and demand analysis fails in this instance to explain the price movements.
the demand for laptops has increased.
the supply of laptops has increased.
n
Question 8
1 pts
How will an unusually cold winter affect the price of antifreeze? (Antifreeze prevents the water in
the radiator of your car from freezing and bad things from happening to your car during the winter).
The price of antifreeze rises and the quantity sold increases.
The price of antifreeze rises and the quantity sold decreases.
The price of antifreeze falls and the quantity sold increases.
The price of antifreeze falls and the quantity sold decreases.
Question 9
1 pts
Is it possible for the quantity of a good sold to stay the same, while the price increases?
No, since this will only happen if the supply curve is perfectly elastic, which is unrealistic.
No, since this will only happen if the demand curve is perfectly elastic, which is unrealistic.
Yes, if both demand and supply of a good decrease by the same amount.
Yes, if demand increases and supply decreases, although not necessarily by the same amount
Question 3
1 pts
The one word that best describes elasticity is:
responsiveness.
O behavior.
O income.
O price.
Question 11
1 pts
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity
supplied. This is known as
excess supply
excess demand
ceteris paribus
a price ceiling

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economics

supply and demand

equilibrium price

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