Quiz 2.pdf

6/7/2021 Quiz 2
https://sb.lms.athabascau.ca/mod/quiz/review.php?attempt=395321 1/31

Started on Friday, 2 April 2021, 4:33 PM MDT
State Finished
Completed on Friday, 9 April 2021, 9:07 PM MDT
Time taken 7 days 4 hours
Marks 27.00/30.00
Grade 90.00 out of 100.00

6/7/2021 Quiz 2
Question 1
Incorrect Mark 0.00 out of 1.00
If the price of coffee increases, the demand curve for tea (a substitute good) will
Your answer is incorrect.
The correct answer is: shift to the right.
Select one:
a. remain unchanged.
b. shift to the right.
c. shift to the left.
d. shift to the right along with the supply curve. 

6/7/2021 Quiz 2
Question 2
Correct Mark 1.00 out of 1.00
Suppose there is a decrease in both the demand for and supply of a good. What happens to equilibrium price and quantity?
Your answer is correct.
The correct answer is: Equilibrium quantity decreases, but the effect on equilibrium price is ambiguous.
Select one:
a. Equilibrium quantity increases, but the effect on equilibrium price is ambiguous.
b. Equilibrium quantity decreases, but the effect on equilibrium price is ambiguous. 
c. Equilibrium price increases, but the effect on equilibrium quantity is ambiguous.
d. Equilibrium price decreases, but the effect on equilibrium quantity is ambiguous.

6/7/2021 Quiz 2
Question 3
The number of buyers affects
The correct answer is: the market demand curve.
Select one:
a. the market demand curve. 
b. all individual supply curves.
c. the market supply curve.
d. all individual demand curves.

6/7/2021 Quiz 2
Question 4
Which of the following is an example of complementary goods?
The correct answer is: cereal and milk
Select one:
a. lawnmowers and automobiles
b. wine and beer
c. cereal and milk 
d. hamburgers and hot dogs

6/7/2021 Quiz 2
Question 5
A market supply curve is constructed
The correct answer is: by horizontally summing individual supply curves.
Select one:
a. by finding the average quantity supplied by the market’s individual supply curves.
b. by vertically summing individual supply curves.
c. by horizontally summing individual supply curves. 
d. by summing a consumer’s demands for all goods.

6/7/2021 Quiz 2
Question 6
Supply-and-demand analysis involves
The correct answer is: comparing the old equilibrium and the new equilibrium.
Select one:
a. comparing the old equilibrium and the new equilibrium.
b. evaluating buyers’ reluctance to pay the market price.
c. evaluating the friction that develops between buyers and sellers. 
d. comparing products in different markets.

6/7/2021 Quiz 2
Question 7
The law of demand implies that
The correct answer is: price and quantity demanded are inversely related.
Select one:
a. price and quantity supplied are inversely related.
b. price and quantity demanded are positively related.
c. price and quantity demanded are inversely related. 
d. price and quantity supplied are positively related.

6/7/2021 Quiz 2
Question 8
If Francis receives an increase in his pay, we would expect
The correct answer is: Francis’s demand for luxury goods to increase.
Select one:
a. Francis’s demand for inferior goods to increase.
b. Francis’s demand for normal goods to decrease.
c. Francis’s demand for each good he purchases to remain unchanged.
d. Francis’s demand for luxury goods to increase. 

6/7/2021 Quiz 2
Question 9
If quantity demanded for a good has been increased at every price, what might be the reason for this?
The correct answer is: The price of a substitute good has increased.
Select one:
a. The consumer prefers another good more than this good.
b. The number of buyers in the market has decreased.
c. The price of a substitute good has increased. 
d. Income has increased, and this good is an inferior good.

6/7/2021 Quiz 2
Question 10
When evaluating differences or similarities between an increase in supply and an increase in quantity supplied, we know that
The correct answer is: an increase in supply is a shift of the curve, and an increase in quantity supplied is a movement along the curve.
Select one:
a. both are movements along the curve.
b. an increase in supply is a movement along the curve, and an increase in quantity supplied is a shift of the curve.
c. both are shifts of the supply curve.
d. an increase in supply is a shift of the curve, and an increase in quantity supplied is a movement along the curve. 

6/7/2021 Quiz 2
Question 11
The table below shows the number of energy drinks demanded per day by the students at a certain university. Does this demand schedule
conform to the law of demand?
Price
Quantity
Demanded
$0 100
$1 1100
$2 900
$3 1200
$4 1050
The correct answer is: No, because there appears to be no relationship between price and quantity demanded.
Select one:
a. Yes, because as the price falls, the quantity demanded rises.
b. Yes, because as the price falls, the quantity demanded also falls.
c. No, because there appears to be no relationship between price and quantity demanded. 
d. No, but the demand for most goods does not follow the law of demand.

6/7/2021 Quiz 2
Question 12
The tickets to the Toronto Raptors-Indiana Pacers basketball games are usually sold out in advance of game day. This suggests that
The correct answer is: the price is set below the equilibrium level.
Select one:
a. the price of the tickets must be very high or else people would not consider them valuable.
b. the price is set below the equilibrium level. 
c. the Raptors’ basketball stadium is relatively small.
d. everyone who attends the game will enjoy it.

6/7/2021 Quiz 2
Question 13
At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys eight units. Has Sam’s demand decreased?
The correct answer is: No. Sam’s quantity demanded has decreased, and his demand has not changed.
Select one:
a. Yes. Sam’s demand has decreased.
b. No. Sam’s demand has increased.
c. No. Sam’s quantity demanded has decreased, and his demand has not changed. 
d. No. Sam’s quantity demanded has increased, and his demand has increased.
e. No. Sam’s demand has increased, and his quantity demanded has decreased.

6/7/2021 Quiz 2
Question 14
If two goods are substitutes in consumption,
The correct answer is: a decrease in the price of one product will cause a decrease in the demand for the other product.
Select one:
a. a decrease in the price of one product will cause an increase in the demand for the other product.
b. a decrease in the price of one product will cause a decrease in the demand for the other product. 
c. an increase in the price of one product will cause an increase in the supply of the other product.
d. an increase in the price of one product will cause a decrease in the supply of the other product.
e. an increase in the price of one product will cause a decrease in the demand for the other product.

6/7/2021 Quiz 2
Question 15
Market demand is given as Qd = 200 – 2P. Market supply is given as Qs = 2P + 100. In a perfectly competitive equilibrium, what will be price
and quantity?
The correct answer is: Price will be $25, and quantity will be 150.
Select one:
a. Price will be $25, and quantity will be 150. 
b. Price will be $50, and quantity will be 200.
c. Price will be $100, and quantity will be 300.
d. Price will be $250, and quantity will be 25.

6/7/2021 Quiz 2
Question 16
What would happen if both supply and demand increased?
The correct answer is: Equilibrium quantity would definitely increase.
Select one:
a. Equilibrium price would definitely decrease.
b. Equilibrium price would definitely increase.
c. Equilibrium quantity would definitely decrease.
d. Equilibrium quantity would definitely increase. 

6/7/2021 Quiz 2
Question 17
Market demand is given as Qd = 100 – 5P. Market supply is given as Qs = 5P. What would result if the market price were $20?
The correct answer is: a surplus of 100
Select one:
a. a surplus of 100 
b. a shortage of 80
c. a shortage of 160
d. a surplus of 160

6/7/2021 Quiz 2
Question 18
New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public
transportation becomes cheaper and more comfortable, auto workers accept lower wages, and automobile insurance becomes more expensive?
The correct answer is: the price will fall
Select one:
a. the price change will be ambiguous
b. the price will rise
c. the price will stay the same
d. the price will fall 

6/7/2021 Quiz 2
Question 19
The supply schedule shows a relationship between
The correct answer is: price and quantity supplied.
Select one:
a. profit and price.
b. price and quantity supplied. 
c. price and quantity demanded.
d. supply and quantity.

6/7/2021 Quiz 2
Question 20
Wheat is the main input in the production of flour. All other things being equal, if the price of wheat increases, we would expect
The correct answer is: the supply of flour to decrease.
Select one:
a. the supply of flour to decrease. 
b. the demand for flour to decrease.
c. the supply of flour to increase.
d. the demand for flour to increase.

6/7/2021 Quiz 2
Question 21
Suppose that the number of buyers in a market increases and a technological advancement occurs. What would we expect to happen in the
market?
The correct answer is: The equilibrium quantity would increase, but the impact on the equilibrium price would be ambiguous.
Select one:
a. The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.
b. The equilibrium quantity would increase, but the impact on the equilibrium price would be ambiguous. 
c. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.
d. The equilibrium quantity would decrease, but the impact on the equilibrium price would be ambiguous.

6/7/2021 Quiz 2
Question 22
An increase in the expected future price of a good will cause the current demand for the good to
The correct answer is: increase, which is a shift to the right of the demand curve.
Select one:
a. decrease, which is a shift to the left of the demand curve.
b. decrease, which is a shift to the right of the demand curve.
c. increase, which is a shift to the left of the demand curve.
d. increase, which is a shift to the right of the demand curve. 

6/7/2021 Quiz 2
Question 23
What will result from an increase in resource costs to firms in a market?
The correct answer is: an increase in equilibrium price and a decrease in equilibrium quantity
Select one:
a. an increase in equilibrium price and a decrease in equilibrium quantity 
b. a decrease in equilibrium price and a decrease in equilibrium quantity
c. an increase in equilibrium price and no change in equilibrium quantity
d. a decrease in equilibrium price and an increase in equilibrium quantity

6/7/2021 Quiz 2
Question 24
If the demand for a product decreases, we expect
The correct answer is: equilibrium price and equilibrium quantity to both decrease.
Select one:
a. equilibrium price and equilibrium quantity to both increase.
b. equilibrium price to decrease and equilibrium quantity to increase.
c. equilibrium price and equilibrium quantity to both decrease. 
d. equilibrium price to increase and equilibrium quantity to decrease.

6/7/2021 Quiz 2
Question 25
If the number of buyers in the housing market decreases,
The correct answer is: demand in the market will decrease.
Select one:
a. demand in the market will increase.
b. demand in the market will decrease. 
c. supply in the market will decrease.
d. supply in the market will increase.

6/7/2021 Quiz 2
Question 26
The market supply curve shows
The correct answer is: the total quantity supplied at any price.
Select one:
a. the average quantity supplied at any price.
b. a ratio between price and quantity supplied for the market.
c. the price that sellers will receive from consumers at given quantities.
d. the total quantity supplied at any price. 

6/7/2021 Quiz 2
Question 27
Wheat is the main input in the production of flour. All other things being equal, if the price of wheat decreases, we would expect
The correct answer is: the supply of flour to increase.
Select one:
a. the demand for flour to increase.
b. the demand for flour to decrease.
c. the supply of flour to increase. 
d. the supply of flour to decrease.

6/7/2021 Quiz 2
Question 28
If suppliers expect the price of their product to fall in the future, they will normally
The correct answer is: increase supply now.
Select one:
a. increase supply now.
b. increase supply in the future.
c. decrease supply now.
d. increase supply now and decrease it in the future. 

6/7/2021 Quiz 2
Question 29
What is the unique point at which the supply and demand curves intersect?
The correct answer is: equilibrium
Select one:
a. equilibrium 
b. cohesion
c. market unity
d. buyers’ agreement

6/7/2021 Quiz 2
Question 30
An early frost in the vineyards of the Okanagan Valley would cause
The correct answer is: a decrease in the supply of wine, increasing price.
Select one:
a. an increase in the demand for wine, increasing price.
b. an increase in the supply of wine, decreasing price.
c. a decrease in the demand for wine, decreasing price.
d. a decrease in the supply of wine, increasing price. 
◄ Unit 2: The Market Forces of Demand and Supply—The Basics Jump to...
Unit 3: The Elasticity of Demand and Supply ►

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