Micro Review (Quiz 1 and 2)

A _____ is the location (physical or digital) where buyers and sellers meet to make transactions.

When the supply/demand for a good or service is listed in an Excel form with price and quantity in columns, it is known as the supply/demand _____

Which of the following shift the supply line? (3 answers)

• input prices

• number of buyers

• expectations

• tastes/preferences

• technology

Which describes a market situation where demand is greater than supply?

• surplus

• equilibrium

• shortage

• market-clearing price

• all of these

Normative statement are objective, descriptive, and fact-based.

• True

• False

An increase in the price of apples will shift the demand curve for apples to the left

• True

• False

When making decisions, rational people will compare the marginal _____ to the marginal cost.

Utility is a way to measure happiness or pleasure some gets from consuming an good or service.

• True

• False

Assume that bananas and oranges are substitute goods. What would you expect in the market if a drought caused a shortage of oranges? Select all that apply (2 answers)

• The price of oranges would fall

• The price of oranges would rise

• The demand curve for bananas would shift to the left

• The demand curve for bananas would shift to the right

• The demand curve for oranges would shift to the left

Assume that bananas smoothies and sugar are complementary goods. What happens to the supply of banana smoothies if the price of sugar rises?

• No effect

• The price of smoothies would rise along the supply curve

• The price of smoothies would fall along the supply line

• The supply curve for smoothies would shift to the left