Microeconomics Unit 2 Quiz

What is the relationship between beef and chicken in the context of this unit?

• Beef is an inferior good compared to chicken.

• Beef and chicken are unrelated goods.

• Beef is a substitute for chicken.

• Beef is a complement to chicken.

What happens to consumer surplus at market equilibrium?

• It is maximized.

• It is minimized.

• It is equal to producer surplus.

• It becomes zero.

What is the effect of a price ceiling set below the equilibrium price?

• It causes a shortage.

• It causes a surplus.

• It increases demand.

• It has no effect.

If the price of chicken falls, what happens to the demand for beef?

• Demand for beef becomes perfectly elastic.

• Demand for beef remains unchanged.

• Demand for beef decreases.

• Demand for beef increases.

Which of the following is a demand shifter?

• Change in production technology

• Change in consumer income

• Government price controls

• Number of suppliers

What is the result of a double shift in supply and demand?

• Price and quantity both increase.

• Price decreases, quantity is indeterminate.

• Price and quantity both decrease.

• Price is indeterminate, quantity increases.

How does an increase in consumer income affect the demand for a normal good?

• Demand remains unchanged.

• Demand decreases.

• Demand increases.

• Demand becomes perfectly inelastic.

What does it mean if total revenue increases when the price of a good decreases?

• The demand is unitary elastic.

• The demand is perfectly elastic.

• The demand is elastic.

• The demand is inelastic.

What is the total revenue test used for?

• To measure producer surplus

• To calculate consumer surplus

• To determine the elasticity of supply

• To assess the elasticity of demand

If the price of a good goes up and total revenue goes down, what can be inferred about the demand?

• Demand is elastic.

• Demand is inelastic.

• Demand is perfectly inelastic.

• Demand is unitary elastic.