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