Reference no: EM13957323

1.Suppose that the demand curve for apples is downward sloping, and that with other things remaining equal, the price per tonne increases from $234 to $244. We would then expect 

Select one: 

a. the demand curve for apples to shift leftward toward the origin. 

b. the demand for apples to decrease. 

c. an increase in the quantity of apples demanded. 

d. a fall in the quantity of apples demanded. 

 

2.A demand curve is a graphical representation of 

Select one:

a. consumer tastes. 

b. relative prices. 

c. a demand schedule. 

 

d. national income. 

3. 

Price Per	Quantity Demanded by:
CD	Buyer 1	Buyer 2	Buyer 3	Buyer 4
$20	0	0	1	0
18	0	1	3	0
16	1	2	5	1
14	2	4	7	3
12	3	6	9	6
10	4	8	11	10
8	5	11	13	15

In Table 3-1, what is the highest price at which a producer could sell 24 CDs? 

Select one: 

a. $16 

b. $10 

c. $14 

d. $12 

4.If a particular good or service is an inferior and an increase in consumer income occurs, ceteris paribus, which of the following statements is FALSE? 

Select one: 

a. At a given price, less will be spent on the good. 

b. There will be a decrease in demand for the good. 

c. The demand curve for the good will shift toward the origin. 

d. There will be an increase in demand for the good. 

5.Sarah gets a raise in pay of twenty percent. Before her raise, she purchased 5 kilograms of hamburger and 1 kilogram of steak a month. After her raise, she consumes 3 kilograms of steak and 2 kilograms of hamburger a month. If no other relevant influence has changed, we know that for Sarah 

Select one: 

a. both steak and hamburger are normal goods. 

b. hamburger is an inferior good and steak is a normal good. 

c. hamburger is a normal good and steak is an inferior good. 

d. both steak and hamburger are inferior goods. 

6.After a fall in the price of songs downloaded from the Internet, Phil purchases fewer CDs and buys a new MP3 player. For Phil, 

Select one: 

a. MP3 players and CDs are complements. 

b. CDs, downloaded music and MP3 players are all substitutes. 

c. CDs and downloaded songs are substitutes; downloaded songs and MP3 players are complements. 

d. MP3 players, CDs and CD players all are complements. 

 

7.Other things constant, quantity supplied of a product is determined by 

Select one: 

a. input prices.

b. the product's price. 

c. taxes and subsidies. 

d. price expectations. 

 

8.The market supply curve is found by 

Select one: 

a. surveys of consumer groups. 

b. horizontally summing up the supply curves of individual suppliers. 

c. estimating what the supply curve would be of one huge firm large enough to serve the entire market. 

d. vertically summing up the equilibrium prices of individual suppliers. 

 

9.Which of the following will shift today's supply curve to the right? 

Select one: 

a. Input prices rise 

b. Prices are expected to be lower in the future 

c. Sales taxes increase 

d. Prices are expected to be higher in the future

 

10.If other things are held constant, an increase in wages earned by workers in the steel industry will cause 

Select one: 

a. the demand for autos to decrease. 

b. the supply of autos to decrease. 

c. the quantity supplied of steel to decrease. 

d. the quantity of autos supplied to decrease. 

 

11.If the price elasticity of demand for the product you are selling is 0.5 and you wish to increase your sales by 20% from current levels, you could achieve that result by cutting your price 

Select one: 

a. 20% 

b. 10% 

c. 5% 

d. 40% 

 

12.Which of the following would NOT affect a good's price elasticity of demand? 

Select one: 

a. the ease of substitution between goods 

b. the cost of producing the good 

c. the number of substitutes available 

d. the share of one's budget spent on the good 

 

13.ncome elasticity of demand measures the effect of a change in income as 

Select one: 

a. a movement down a demand curve. 

b. a movement up a demand curve. 

c. a horizontal shift in a demand curve. 

d. percentage change in quantity demanded divided by percentage change in the price. 

 

14.A horizontal supply curve intersects the vertical axis at a price of $5. The elasticity of supply is 

Select one: 

a. 5.0 

b. 0.0 

c. inelastic. 

d. perfectly elastic. 

15.In Table 4-2, assume that all other influences on the demand for the three goods remain the same. The cross price elasticity (calculated using averages) of demand for X with respect to good Y when Py falls from $20 to $18 then is 

Table 4-2 

Month	Px	Qx	Py	Qy	Pz	Qz
Jan.	$10	100	$20	50	$25	200
Feb.	10	90	18	60	25	225
Mar	10	70	15	90	25	275
Apr	12	50	15	100	25	290
May	15	25	15	120	25	320

Select one: 

a. -2.0 

b. 0.0 

c. 1.0 

d. -1.0 

16.In the longer term, supply curves generally 

Select one: 

a. are more elastic than it they are in the short term. 

b. are less elastic than they are in the short term. 

c. exhibit no systematic sequence of changes in elasticity. 

d. exhibit no change in elasticity at all. 

 

17.in Table 4-1, what is the elasticity of demand (calculated using average values) over the price range from $9.50 to $8.50? 

Table 4-1 

        Price         Quantity Demanded 

 

      per Unit                per Week 

     $10.00                       25 

         9.50                       30 

         9.00                       35 

         8.50                       40 

         8.00                       45 

         7.50                       50 

         7.00                       55 

         6.50                       60 

         6.00                       65 

         5.50                       70 

         5.00                       75 

Select one: 

a. 10 

b. 18/7 

c. 7/18 

d. 1/10