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TUTORIAL 2: DEMAND AND SUPPLY QUIZ
1. For a competitive market, which of the following statements is correct?
A. A seller can always increase her profit by raising the price of her product.
B. If a seller charges more than the going price, buyers will go elsewhere to make their purchases.
C. A seller often charges less than the going price to increase sales and profit.
D. A single buyer can influence the price of the product, but only when
purchasing from several sellers in a short period of time.
2. In a perfectly competitive market, at the market price,
A. buyers cannot buy all they want and sellers cannot sell all they want.
B. buyers cannot buy all they want, but sellers can sell all they want.
C. buyers can buy all they want, but sellers cannot sell all they want.
D. buyers can buy all they want and sellers can sell all they want.
3. A demand schedule is a table that shows the relationship between
A. quantity demanded and quantity supplied.
B. income and quantity demanded.
C. price and quantity demanded. D. price and income. Table 4-1 Price Aaron’s Angela’s Austin’s Alyssa’s Quantity Quantity Quantity Quantity
Demanded Demanded Demanded Demanded $0.00 20 16 4 8 $0.50 18 12 6 6 $1.00 14 10 2 5 $1.50 12 8 0 4 $2.00 6 6 0 2 $2.50 0 4 0 0
4. Refer to Table 4-1. If these are the only four buyers in the market, then the market quantity
demanded at a price of $1 is A. 4 units. B. 7.75 units. C. 14 units. D. 31 units. lOMoARcPSD|46958826
5. A movement along the demand curve might be caused by a change in A. income.
B. the prices of substitutes or complements.
C. expectations about future prices.
D. the price of the good or service that is being demanded. hàng kém chất lượng
6. If a good is inferior, then an increase in income will result in
A. an increase in the demand for the good.
B. a decrease in the demand for the good
C. a movement down and to the right along the demand curve for the good
D. a movement up and to the left along the demand curve for the good
7. Suppose that Carolyn receives a pay increase. We would expect
A. to observe Carolyn moving down and to the right along her given demand curve.
B. Carolyn's demand for inferior goods to decrease.
C. Carolyn's demand for each of two goods that are complements to increase.
D. Carolyn's demand for normal goods to decrease.
8. Suppose that a decrease in the price of good X results in fewer units of good Y being sold.
This implies that X and Y are
A. complementary goods. B. normal goods. C. inferior goods. D. substitute goods.
Chiết khấu, hoàn lại tiền khi trả full 1 lúc
9. Ford Motor Company announces that next month it will offer $3,000 rebates on
new Mustangs. As a result of this information, today’s demand curve for Mustangs
A. shifts to the right. B. shifts to the left.
C. shifts either to the right or to the left, but we cannot determine the direction of
the shift from the given information.
D. will not shift; rather, the demand curve for Mustangs will shift to the right next month.
10. “Other things equal, when the price of a good rises, the quantity supplied of the good also
rises, and when the price falls, the quantity supplied falls as well.” This relationship between
price and quantity supplied
A. is referred to as the law of supply.
B. applies only to a few goods in the economy.
C. is represented by a downward-sloping supply curve.
D. All of the above are correct.
11. A movement upward and to the right along a supply curve is called A. an increase in supply. B. a decrease in supply. lOMoARcPSD|46958826
C. a decrease in quantity supplied.
D. an increase in quantity supplied.
12. A movement downward and to the left along a supply curve is called A. an increase in supply. B. a decrease in supply.
C. a decrease in quantity supplied.
D. an increase in quantity supplied.
13. The supply curve for coffee
A. shifts when the price of coffee changes because the price of coffee is measured
on the vertical axis of the graph.
B. shifts when the price of coffee changes because the quantity supplied of coffee
is measured on the horizontal axis of the graph.
C. does not shift when the price of coffee changes because the price of coffee
is measured on the vertical axis of the graph.
D. does not shift when the price of coffee changes because the quantity supplied
of coffee is measured on the horizontal axis of the graph.
14. Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the
A. demand for flour to increase.
B. demand for flour to decrease.
C. supply of flour to increase.
D. supply of flour to decrease.
15. If car manufacturers begin utilizing new labor-saving technology on their assembly lines, we would not expect
A. a smaller quantity of labor to be used.
B. the supply of cars to increase. C. the firms’ costs to fall.
D. individual car manufacturers to move up and to the right along their individual supply curves.
16. Which of the following events could cause an increase in the supply of ceiling fans?
A. The number of sellers of ceiling fans increases.
B. There is an increase in the price of air conditioners, and consumers regard air
conditioners and ceiling fans as substitutes. It’s demand side
C. There is an increase in the price of the motor that powers ceiling fans. Supply decrease
D. All of the above are correct.
17. In markets, prices move toward equilibrium because of
A. the actions of buyers and sellers.
B. government regulations placed on market participants.
C. increased competition among sellers. lOMoARcPSD|46958826
D. buyers' ability to affect market outcomes.
18. Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is
$30 per dozen. We would expect a
A. shortage to exist and the market price of roses to increase.
B. shortage to exist and the market price of roses to decrease.
C. surplus to exist and the market price of roses to increase.
D. surplus to exist and the market price of roses to decrease. Table 4-7
The demand schedule below pertains to sandwiches demanded per week. Price Charlie’s Maxine’s Quinn’s Quantity Quantity Quantity Demanded Demanded Demanded $3 3 4 3 $5 1 2 x
19. Refer to Table 4-7. Regarding Charlie and Maxine, for whom are sandwiches a normal good? A. only for Charlie B. only for Maxine C. for Charlie and for Maxine
D. This cannot be determined from the given information. Figure 4-8 50 price 45 S 40 35 30 25 20 15 10 5 D
100 200 300 400 500 600 700 800 quantity
20. Refer to Figure 4-8. Equilibrium price and quantity are, respectively, A. $15 and 200. B. $25 and 600. C. $25 and 400. D. $35 and 200. lOMoARcPSD|46958826
21. Refer to Figure 4-8. At a price of $35,
A. a shortage would exist and the price would tend to rise from $35 to a higher price.
B. a surplus would exist and the price would tend to rise from $35 to a higher price.
C. an excess demand would exist and the price would tend to fall from $35 to a lower price.
D. an excess supply would exist and the price would tend to fall from $35 to a lower price. Figure 4-10 50 price 45 40 35 30 S 25 20 15 10 5 D
100 200 300 400 500 600 700 800 900 quantity
22. Refer to Figure 4-10. If the price is $10, then there would be a
A. shortage of 400 and price would rise.
B. surplus of 400 and price would rise.
C. shortage of 600 and price would rise.
D. surplus of 600 and price would rise. Figure 4-12
The diagram below pertains to the demand for turkey in the United States. price y x DA DB quantity lOMoARcPSD|46958826
23. Refer to Figure 4-12. All else equal, buyers expecting turkey to be more expensive in the
future would cause a current move
-> It’s cheaper NOW -> Dnow increase -> SHIFT to RIGHT A. from DA to DB. B. from DB to DA. C. from x to y. D. from y to x. PROBLEMS
1. Explain each of the following statements using supply-and-demand diagrams.
a. “When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.”
b. “When the weather turns warm in New England every summer, the price of hotel
rooms in Caribbean resorts plummets.”
c. “When a war breaks out in the Middle East, the price of gasoline rises, and the
price of a used Cadillac falls.”
2. “An increase in the demand for notebooks raises the quantity of notebooks demanded
but not the quantity supplied.” Is this statement true or false? Explain.
True: because when the demand for NB raise, pp would buy NB whether what their price
is -> QD raised. But the QS is not necessarily raise.
3. Over the past decades, technological advances have reduced the cost of computer
chips. How do you think this has affected the market for computers? For computer software? For typewriters?
The cost of Chips fall -> Computer software fall -> Typewriters get less payment
4. Consider the market for eggs. For each of the events listed here, identify which of the
determinants of demand or supply are affected. Also indicate whether supply or
demand increases or decreases. Then draw a diagram to show the effect on the price and quantity of eggs.
a. The price of grain that is fed to hens falls. b. The price of bacon falls.
c. A new study is released that indicates that eating eggs is hazardous to one’s health.
d. The number of egg-producing farms falls.
e. This weekend is the Easter holiday. lOMoARcPSD|46958826