Econ 101 - Microeconomics » Fall 2022 » Supply and Demand Chapter 3 Quiz

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Question #1
An important assumption that is made when constructing a demand schedule is that
A.   only price and quantity matter in determining demand.
B.   demand is too important to be left to the economists.
C.   all other determinants of demand are held constant.
D.   people always want a certain amount of a product.
Question #2
The demand curve for a typical good has
A.   a negative slope because some consumers switch to other goods as the price of the good rises.
B.   a positive slope because price is a clear indicator of need.
C.   a negative slope because the good has less "snob appeal" as its price falls.
D.   an inverse slope because as the price goes up, the good has more profitability.
E.   a negative slope because the supply of the good rises as demand rises.
Question #3
Which of the following would be most likely to cause an outward shift of the demand curve for electricity?
A.   a decrease in the price of electricity
B.   an increase in the price of air conditioners
C.   a decrease in the price of natural gas
D.   an increase in the price of heating oil
Question #4
The supply curve shows
A.   the quantity produced as a function of the price.
B.   the same basic information as the demand curve.
C.   plots of what quantities have been sold over the past few weeks or months.
D.   who will have an opportunity to produce or purchase an item.
Question #5
When a demand schedule is drawn as a graph,
A.   All of these are correct.
B.   price is measured on the vertical axis.
C.   quantity is measured on the horizontal axis.
D.   the resulting curve has a negative slope.
Question #6
The price for labor is the wage rate. What happens to the supply of labor if wages increase?
A.   It decreases.
B.   It does not change.
C.   It increases.
D.   Uncertain-economic theory has no answer to this question.
Question #7
The demand curve for a good connects points describing how much consumers
A.   would have been willing and able to buy at different prices during a particular period.
B.   would have been willing and able to buy at different prices in different periods.
C.   actually bought at different prices during a particular period.
D.   actually bought at different prices in different periods.
Question #8
If price rises, what happens to demand for a product?
A.   It does not change.
B.   It increases.
C.   It decreases.
D.   Uncertain-economic theory has no answer to this question.
Question #9
Which of the following is not a symptom associated with a price floor?
A.   Problem of disposal created by excess supply.
B.   Survival of inefficient businesses.
C.   Excess of quantity demanded over quantity supplied.
D.   Sellers offering discounts in disguised forms.
Question #10
Ticket "scalping" is an example of
A.   the limitation of the volume of transactions.
B.   favoritism.
C.   experimental economics.
D.   the development of a black market.
Question #11
If price rises, what happens to supply for a product?
A.   It increases.
B.   It does not change.
C.   It decreases.
D.   Uncertain-economic theory has no answer to this question.
Question #12
An upward-sloping supply curve shows that
A.   suppliers are willing to increase production of their goods if they can receive higher prices for them.
B.   buyers are unaffected by sellers' costs of production.
C.   buyers are willing to pay more for a scarce product.
D.   the price of a product is not influenced by the price buyers are willing to pay.
Question #13
A shift in the supply curve of bicycles resulting from higher steel prices will lead to
A.   larger output of bicycles.
B.   lower prices of bicycles.
C.   higher prices of bicycles.
D.   a shift in the demand curve for bicycles.
Question #14
Assume the demand schedule for cookies is downward sloping. If the price of cookies falls from $1.50 to $1.25 per dozen,
A.   the demand for cookies will rise.
B.   a larger quantity of cookies will be demanded.
C.   a smaller quantity of cookies will be demanded.
D.   the demand for cookies will fall.
Question #15
Which of the following is the correct way to describe equilibrium in a market?
A.   At equilibrium, demand equals supply.
B.   At equilibrium, market forces are no longer at work.
C.   Equilibrium is a tendency, a state of perpetual motion.
D.   At equilibrium, quantity demanded equals quantity supplied.

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