Brookdale Community College - ECON 106. Supply & Demand Quiz. 20 Questions with 100% Score.

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ECON 106. Supply & Demand Quiz 2. Supply & Demand Question 1 1 / 1 pts A decrease in demand is depicted by a: Correct! shift from D2 to D1. move from point x to point y.... move from point y to point x. shift from D1 to D2. Question 2 1 / 1 pts A decrease in quantity demanded (as distinct from a decrease in demand) is depicted by a: Correct! move from point y to point x. shift from D1 to D2. move from point x to point y. shift from D2 to D1. Question 3 1 / 1 pts A decrease in supply is depicted by a: move from point x to point y. shift from S1 to S2. Correct! shift from S2 to S1. move from point y to point x. Question 4 1 / 1 pts A decrease in the price of cameras will: Correct! shift the demand curve for film to the right. not affect the demand for film. shift the demand curve for film to the left. cause the demand curve for film to become vertical. Question 5 1 / 1 pts A leftward shift of a product supply curve might be caused by: a decline in the prices of needed inputs. an improvement in the relevant technique of production. Correct! some firms leaving an industry. an increase in consumer incomes. Question 6 1 / 1 pts A market is in equilibrium: provided there is no surplus of the product. Correct! if the amount producers want to sell is equal to the amount consumers want to buy. at all prices above that shown by the intersection of the supply and demand curves. whenever the demand curve is downsloping and the supply curve is upsloping. Question 7 1 / 1 pts An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction is based on the assumption that: there are many goods that are substitutes for bicycles. Correct! bicycles are normal goods. there are many goods that are complementary to bicycles. there are few goods that are substitutes for bicycles. Question 8 1 / 1 pts An improvement in production technology will: Correct! shift the supply curve to the right. shift the demand curve to the left. shift the supply curve to the left. increase equilibrium price. Question 9 1 / 1 pts An increase in quantity supplied (as distinct from an increase in supply) is depicted by a: shift from S2 to S1. Correct! move from point y to point x. move from point x to point y. shift from S1 to S2. Question 10 1 / 1 pts Answer the next question(s) on the basis of the given supply and demand data for wheat: Refer to the above data. Equilibrium price will be: $3. $4. Correct! $2. $1. Question 11 1 / 1 pts Answer the next question(s) on the basis of the given supply and demand data for wheat: Refer to the above data. If the price in this market was $4: buyers would want to purchase more wheat than is currently being supplied. Correct! farmers would not be able to sell all their wheat. the market would clear; quantity demanded would equal quantity supplied. there would be a shortage of wheat. Question 12 1 / 1 pts If two goods are complements: an increase in the price of one will increase the demand for the other. they are consumed independently. they are necessarily inferior goods. Correct! a decrease in the price of one will increase the demand for the other. Question 13 1 / 1 pts Refer to the above diagram. A surplus of 160 units would be encountered if price was: $1.10, that is, $1.60 minus $.50. $1.00. Correct! $1.60. $.50. Question 14 1 / 1 pts Refer to the above diagram. The equilibrium price and quantity in this market will be: $1.60 and 130. Correct! $1.00 and 200. $.50 and 130. $1.60 and 290. Question 15 1 / 1 pts The law of demand states that: consumers will buy more of a product at high prices than at low prices. Correct! price and quantity demanded are inversely related. price and quantity demanded are directly related. the larger the number of buyers in a market, the lower will be product price. Question 16 1 / 1 pts The law of supply indicates that: the product supply curve is downsloping. Correct! producers will offer more of a product at high prices than they will at low prices. producers will offer more of a product at low prices than they will at high prices. consumers will purchase less of a good at high prices than they will at low prices. Question 17 1 / 1 pts Video cassette recorders and video cassettes are: inferior goods. substitute goods. independent goods. Correct! complementary goods. Question 18 1 / 1 pts Which of the following is most likely to be an inferior good? Porsches steak fur coats Correct! used clothing Question 19 1 / 1 pts Which of the following will cause the demand curve for product A to shift to the left? a decrease in the price of complementary product C Correct! an increase in money income if A is an inferior good an increase in money income if A is a normal good population growth that causes an expansion in the number of persons consuming A Question 20 1 / 1 pts Which of the following will not cause the demand for product K to change? a change in the price of close-substitute product J an increase in consumer incomes Correct! a change in the price of K a change in consumer tastes [Show More]

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