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.   people always want a certain amount of a product.
C.   all other determinants of demand are held constant.
D.   only price and quantity matter in determining demand.
Question #2
The demand curve for a typical good has
A.   a positive slope because price is a clear indicator of need.
B.   a negative slope because the supply of the good rises as demand rises.
C.   an inverse slope because as the price goes up, the good has more profitability.
D.   a negative slope because the good has less "snob appeal" as its price falls.
E.   a negative slope because some consumers switch to other goods as the price of the good 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.   an increase in the price of heating oil
D.   a decrease in the price of natural gas
Question #4
The supply curve shows
A.   plots of what quantities have been sold over the past few weeks or months.
B.   the quantity produced as a function of the price.
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.   price is measured on the vertical axis.
B.   All of these are correct.
C.   the resulting curve has a negative slope.
D.   quantity is measured on the horizontal axis.
Question #6
The price for labor is the wage rate. What happens to the supply of labor if wages increase?
A.   Uncertain-economic theory has no answer to this question.
B.   It does not change.
C.   It increases.
D.   It decreases.
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 in different periods.
C.   actually bought at different prices in different periods.
D.   would have been willing and able to buy at different prices during a particular period.
Question #8
If price rises, what happens to demand for a product?
A.   Uncertain-economic theory has no answer to this question.
B.   It increases.
C.   It decreases.
D.   It does not change.
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.   Sellers offering discounts in disguised forms.
D.   Excess of quantity demanded over quantity supplied.
Question #10
Ticket "scalping" is an example of
A.   the limitation of the volume of transactions.
B.   the development of a black market.
C.   experimental economics.
D.   favoritism.
Question #11
If price rises, what happens to supply for a product?
A.   Uncertain-economic theory has no answer to this question.
B.   It does not change.
C.   It increases.
D.   It decreases.
Question #12
An upward-sloping supply curve shows that
A.   the price of a product is not influenced by the price buyers are willing to pay.
B.   buyers are unaffected by sellers' costs of production.
C.   suppliers are willing to increase production of their goods if they can receive higher prices for them.
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.   a shift in the demand curve for bicycles.
B.   higher prices of bicycles.
C.   larger output of bicycles.
D.   lower prices 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.   a smaller quantity of cookies will be demanded.
B.   the demand for cookies will fall.
C.   the demand for cookies will rise.
D.   a larger quantity of cookies will be demanded.
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, market forces are no longer at work.
C.   At equilibrium, demand equals supply.
D.   At equilibrium, quantity demanded equals quantity supplied.

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