Econ 101 - Microeconomics » Spring 2021 » Synchronous Assignment Chapter 4

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Question #1
The law of demand states that, other thins constant, there is:
A.   a direct relationship between price and the quantity demanded.
B.   an inverse relationship between price and the quantity demanded.
C.   a indirect relationship between prie and the quantity demanded.
D.   a indirect effect.
E.   an inverse relationship between price and demand.
Question #2
We would speak of a movement along demand curve--rather than of a shift in demand--if:
A.   the price of another good rose
B.   the price of the good in question rose
C.   expectations changed
D.   incomes rose
E.   the good was inferior
Question #3
To be consistent with the law of supply, a graph depicting the relationship between price and quantity supplied will be:
A.   negatively sloped
B.   vertical
C.   positively-sloped
D.   inverted
E.   horizontal
Question #4
According to the law of supply, the quantity of an item supplied will fall as a result of:
A.   substitution and income effect
B.   decreases in the prices of inputs used to produce the item
C.   an increase in the number of firms producing the item
D.   an increase in the price of the item
E.   a decrease in the price of the item
Question #5
Which of the following events can be expected to cause an increase in the supply of milk?
A.   a decrease in the price of feed for cows
B.   a decrease in the number of dairy farmers
C.   a decrease in peoples' income
D.   an increase in the demand for milk
E.   an increase in the price of milk
Question #6
If, at a good's current price, the quantity demanded is 2,000 units and the quantity supplied is 1,000 units then:
A.   the current price is above the equilibrium price.
B.   consumers of this particular item do not buy less of it when its price increases.
C.   consumers are irrational
D.   the current price is below the equilibrium price.
E.   producers are not resonsive to price changes
Question #7
If there is excess demand in the market, we can expect that:
A.   the demand curve will shift to the left.
B.   prices will rise because firms will exploit consumers by decreasing supply.
C.   the supply curve will shift to the right to restore equilibrium.
D.   prices will rise because suppliers will be able to sell their goods at higher prices.
E.   the supply curve will shift to the left.
Question #8
A productivity increase in the production processes for personal computers would shift the computer supply to:
A.   the right.
B.   immensely to the left.
C.   no shift.
D.   the left.
E.     
F.   down
Question #9
An increase in the demand for a product will cause:
A.   a lower equilibrium price and a lower equilibrium quantity
B.   financial contagion
C.   a higher equilibrium price and a higher equilibrium quantity.
D.   a decrease in supply and a higher equilibrium price and a lower equilibrium quantity
E.   an increase in supply and a lower equilibrium price and a higher equilibrium quantity

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