Post Test Intro Mikro Week II

An increase in the price of a good will

• increase demand.

• decrease demand.

• increase quantity demanded

• decrease quantity demanded

The law of demand states that, other things equal, when the price of a good

• falls, the demand for the good rises.

• rises, the quantity demanded of the good rises.

• rises, the demand for the good falls

• falls, the quantity demanded of the good rises

Which of the following demonstrates the law of demand?

• After Jon got a raise at work, he bought more pretzels at $1.50 per pretzel than he did before his raise.

• Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin, other things equal.

• Dave buys more donuts at $0.25 per donut than at $0.50 per donut, other things equal

• Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

When we move along a given demand curve

• only price is held constant

• income and price are held constant

• all nonprice determinants of demand are held constant

• all determinants of quantity demanded are held constant.

Which of the following changes would not shift the demand curve for a good or service?

• a change in income

• a change in the price of the good or service

• a change in expectations about the future price of the good or service

• a change in the price of a related good or service

The quantity supplied of a good is the amount that

• buyers are willing and able to purchase

• sellers are able to produce

• buyers and sellers agree will be brought to market

• sellers are willing and able to sell.

If the price of a good is low

• firms would increase profit by increasing output

• the quantity supplied of the good could be zero

• the supply curve for the good will shift to the left

• firms can and should raise the price of the product

Which of the following demonstrates the law of supply?

• When leather became more expensive, belt producers decreased their supply of belts.

• When car production technology improved, car producers increased their supply of cars

• When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters.

• When ketchup prices rose, ketchup sellers increased their quantity supplied of ketchup.

If something happens to alter the quantity supplied at any given price, then

• we move along the supply curve

• the supply curve shifts

• the supply curve becomes steeper

• the supply curve becomes flatter.

A movement downward and to the left along a supply curve is called a(n

• increase in supply

• decrease in supply

• decreased in quantity supplied

• increased in quantity supplied