Construction Economics

The market demand curve shows

• the quantity of a good that consumers would like to purchase at different prices

• the marginal cost of producing and selling different quantities of a good

• the effect on market supply of a change in the demand for a good or service

• the effect of advertising expenditures on the market price of a good

At a price of RM 20.00, a fiction novel is expected to sell 9,000 copies. If the novel is offered for sale at a price of RM 15.00, then the publisher can expect to sell

• less than 9,000 copies

• 9,000 copies

• more than 9,000 copies

• it is impossible to predict the effect of a lower price on sales

During a recession, economies experience increased unemployment and a reduced level of activity. How would a recession be likely to affect the market demand for new cars?

• Demand will shift to the right

• Demand will shift to the left

• Demand will not shift, but the quantity of cars sold per month will decrease

• Demand will not shift, but the quantity of cars sold per month will increase

The market supply curve shows

• the effect on market demand of a change in the supply of a good or service

• the quantity of a good that firms would offer for sale at different prices

• the quantity of a good that consumers would be willing to buy at different prices

• all of the above are correct

At a price of RM 600.00, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter. At a price of RM 550.00, it is likely that the manufacturer will be willing to produce

• more than 19,000 units per quarter

• 19,000 units per quarter

• less than 19,000 units per quarter

• it is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce

If automobile manufacturers are producing cars faster than people want to buy them,

• there is an excess supply and price can be expected to decrease

• there is an excess supply and price can be expected to increase

• there is an excess demand and price can be expected to decrease

• there is an excess demand and price can be expected to increase

If a computer software company introduces a new program and finds that orders from wholesalers far exceed the number of units that are being produced,

• there is an excess supply and price can be expected to decrease

• there is an excess supply and price can be expected to increase

• there is an excess demand and price can be expected to decrease

• there is an excess demand and price can be expected to increase

Market equilibrium refers to a situation in which market price

• is high enough to allow firms to earn a fair profit

• is low enough for consumers to buy all that they want

• is at a level where there is neither a shortage nor a surplus

• is just above the intersection of the market supply and demand curves

If the price of a good increases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been

• an increase in demand

• a decrease in demand

• an increase in supply

• a decrease in supply

If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been

• an increase in demand

• a decrease in demand

• an increase in supply

• a decrease in supply