Question 1

Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Accepted Answer

A)   price will be $20 and quantity will be 60
B)   price will be $45 and quantity will be 15
C)   price will be $40 and quantity will be 20
D)   price will be $15 and quantity will be 45E) A) and C)
F) A) and B)

Question 2

If two goods are complements,what happens if there is a decrease in the price of one good?

Accepted Answer

A)   It increases the quantity demanded of the other good.
B)   It reduces the demand for the other good.
C)   It reduces the quantity demanded of the other good.
D)   It raises the demand for the other good.E) A) and B)
F) None of the above

Question 3

It is not possible for demand and supply to shift at the same time.

Accepted Answer

A) True 
 B)False

Question 4

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Accepted Answer

A) True 
 B)False

Question 5

Figure 4-2 
-Refer to the Figure 4-2.What would happen at a price of $15?

Accepted Answer

A)   There would be a shortage of 400 units.
B)   There would be a surplus of 400 units.
C)   There would be a shortage of 200 units.
D)   There would be a surplus of 200 units.E) B) and D)
F) B) and C)

Question 6

Suppose that demand increases and supply decreases.What would we expect to happen in the market?

Accepted Answer

A)   Equilibrium price would decrease,but the impact on quantity would be ambiguous.
B)   Equilibrium price would increase,but the impact on quantity would be ambiguous.
C)   Both equilibrium price and quantity would increase.
D)   Both equilibrium price and quantity would decrease.E) A) and D)
F) A) and B)

Question 7

What would an early frost in the vineyards of the Okanagan Valley cause?

Accepted Answer

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 priceE) None of the above
F) B) and C)

Question 8

What is the unique point at which the supply and demand curves intersect?

Accepted Answer

A)   market unity
B)   an agreement
C)   cohesion
D)   equilibriumE) B) and C)
F) A) and D)

Question 9

If two goods are substitutes,what happens if there is a decrease in the price of one good?

Accepted Answer

A)   It increases the demand for the other good.
B)   It reduces the demand for the other good.
C)   It reduces the quantity demanded of the other good.
D)   It increases the quantity demanded of the other good.E) None of the above
F) B) and C)

Exam 4: The Market Forces of Supply and Demand

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Correct Answer
verified

If two goods are substitutes,what happens if there is a decrease in the price of one good?

Correct Answer
verified

What would an early frost in the vineyards of the Okanagan Valley cause?

Correct Answer
verified

It is not possible for demand and supply to shift at the same time.

Correct Answer
verified

What is the unique point at which the supply and demand curves intersect?

Correct Answer
verified

Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Correct Answer
verified

Suppose that demand increases and supply decreases.What would we expect to happen in the market?

Correct Answer
verified

Figure 4-2 -Refer to the Figure 4-2.What would happen at a price of $15?

Correct Answer
verified

If two goods are complements,what happens if there is a decrease in the price of one good?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

Correct AnswerverifiedShow Answer

If two goods are substitutes,what happens if there is a decrease in the price of one good?

Correct AnswerverifiedShow Answer

What would an early frost in the vineyards of the Okanagan Valley cause?

Correct AnswerverifiedShow Answer

It is not possible for demand and supply to shift at the same time.

Correct AnswerverifiedShow Answer

What is the unique point at which the supply and demand curves intersect?

Correct AnswerverifiedShow Answer

Market demand is given as Qd = 80 - P.Market supply is given as Qs = 3P.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

Correct AnswerverifiedShow Answer

Suppose that demand increases and supply decreases.What would we expect to happen in the market?

Correct AnswerverifiedShow Answer

Figure 4-2 -Refer to the Figure 4-2.What would happen at a price of $15?

Correct AnswerverifiedShow Answer

If two goods are complements,what happens if there is a decrease in the price of one good?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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