CNSA Econ Practice Quiz

Coffee bean merchants notice that coffee prices are at a historic low today, but they expect the price of coffee beans to increase in the next six months.

How will the expectation of an increase in future prices most likely affect the supply of coffee beans on the market today?

• Supply will decrease.

• Supply will increase.

• There will be a movement along the same supply curve to a new higher quantity supplied.

• There will be a movement along the same supply curve to a new lower quantity supplied.

• There is no change in supply.

Which of these values of price elasticity will result in no change in total revenue if a firm increases its price?

• 3

• 0.5

• 1

• 0

• -.75

Holly, Brian, Fred, Tracy, and Melanie have income elasticities for veggie burgers as given in the image:

What kind of good does each person consider veggie burgers?

• Tracy and Brian consider this a normal luxury. Holly considers this a normal necessity, and Fred and Melanie consider this inferior.

• Fred, Tracy, and Brian consider this a normal luxury, Holly considers this a normal necessity, and Melanie considers them inferior.

• Tracy considers this a normal luxury, Holly considers this a normal necessity, and Brian, Fred, and Melanie consider this inferior.

• Brian and Tracy consider this to be a normal luxury, Fred and Holly consider this to be a normal necessity, and Melanie considers them to be inferior.

• Fred, Tracy, and Brian consider this to be a normal luxury, Melanie considers this a normal necessity, and Holly considers this to be inferior.

In which of the following scenarios would we definitely know that price will increase but we'd be unable to determine how quantity changes?

• Increase in D, S no change

• Decrease in D, Increase in S

• Increase in D, Decrease in S

• Decrease in D, Decrease in S

• Increase in D, Increase in S

Which of the following movements would be described as an increase in supply of a good?

• B to A

• D to C

• A to C

• D to A

• A to D

Farmers can easily grow raspberries or strawberries in the same soil using the same inputs and achieve the same output per acre in pounds.

All else equal, what is the value of the relative price elasticity of supply of raspberries over two days or two years?

• relatively more elastic in two days than in two years

• relatively more inelastic in two years than in two days

• relatively elastic in two days; relatively inelastic in two years

• relatively inelastic in two days; relatively inelastic in two years

• relatively inelastic in two days; relatively elastic in two years

Which of the following could cause the movement indicated by the arrow in the graph shown here?

• Lower worker wages

• Reduced government regulation of producers

• A decrease in consumer income

• Increased government regulations of producers

• Seller's expectation that the good's price will fall in the future

Which of the following represents the shortage that would result in this market at a price of P5?

• QA - QB

• QA

• QB - QC

• QC

• QC - QA

Pam considers t-shirts and gym classes to be complementary goods.

How will Pam react if the price of gym classes increases?

• Her quantity demanded of gym classes won’t change, and her demand for t-shirts will increase.

• Her quantity demanded of gym classes will increase, and her demand for t-shirts will decrease.

• Her quantity demanded of gym classes will decrease, and her demand for t-shirts will be unaffected.

• Her quantity demanded of gym classes will decrease, and her demand for t-shirts will decrease.

• Her quantity demanded of gym classes will increase, and her demand for t-shirts will increase.

Economists have observed that when average incomes increase, purchases of fast food tends to decline.

Based on this information, what can we definitely say about fast food?

• Demand for fast food is upward sloping

• Fast food has no substitutes

• The price of a complement to fast food has risen

• Fast food is an inferior good

• Fast food is a normal good