Economics Quiz

A change in which of the following will NOT shift the demand curve for hamburgers?

• the price of hot dogs

• the price of hamburgers

• the price of hamburger buns

• the income of hamburger consumers

An increase in ______ will cause a movement along a given demand curve, which is called a change in ______.

• supply, demand

• supply, quantity demanded

• demand, supply

• demand, quantity supplied

Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets?

• The supply curve shifts to the left.

• The supply curve shifts to the right.

• The demand curve shifts to the left.

• The demand curve shifts to the right.

The discovery of a large new reserve of crude oil will shift the ______ curve for gasoline, leading to a ______ equilibrium price.

• supply, higher

• supply, lower

• demand, higher

• demand, lower

If the economy goes into a recession and incomes fall, what happens in the markets for inferior goods?

• Prices and quantities both rise.

• Prices and quantities both fall.

• Prices rise and quantities fall.

• Prices fall and quantities rise.

Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold?

• an increase in the price of peanut butter, a complement to jelly

• an increase in the price of Marshmallow Fluff, a substitute for jelly

• an increase in the price of grapes, an input into jelly

• an increase in consumers’ incomes

A life-saving medicine without any close substitutes will tend to have

• a small elasticity of demand.

• a large elasticity of demand.

• a small elasticity of supply.

• a large elasticity of supply.

The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units. Calculated with the midpoint method, the price elasticity of demand is

• 1/5.

• 1/2.

• 2.

• 5.

A linear, downward-sloping demand curve is

• inelastic

• unit elastic.

• elastic.

• inelastic at some points, and elastic at others.

The ability of firms to enter and exit a market over time means that, in the long run,

• the demand curve is more elastic.

• the demand curve is less elastic.

• the supply curve is more elastic.

• the supply curve is less elastic.