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

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