Worksheetsmicroeconomics (chapter 3)
Total questions: 20
Worksheet time: 10mins
The "law of demand" states that changes in
demand are related directly to changes in supply.
the quantity demanded of a good are not related to changes in the quantity supplied.
the quantity demanded of a good are inversely related to changes in its price.
demand are inversely related to changes in supply.
If the price of good X increases what happens to its substitute (good Y)?
The demand for good Y will increase.
The market price of good X will decrease.
The demand for good Y will decrease.
The demand for good X will not change.
Which statement expresses a central idea of how the laws of supply and demand work?
The government sets the prices for goods and services.
Prices are determined by the interaction of producers and consumers.
Consumers alone determine the prices for goods and services.
Technology dictates the prices charged for goods and services.
New technology advances the rate at which furniture can be assembled. Why does this change the supply?
There is a change in cost of production.
The number of producers changes.
The expectations of consumers changes.
The output rate declines.
The point in the middle of the two curves represents or shows....?
Market Equilibrium
An increase in supply
A shortage
A surplus
If the supply curve on this graph represents iPhones, what would cause the change from S to S1 (red to purple line)?
An increase in computer chips
An increase in the cost of producing an iPhone
Employees figure out a way to work more efficiently
The price of iPhones increases
This graph represents...?
Changes in quantity demanded
Changes in quantity supplied
Changes in demand
Changes in supply
Mr. Sherman goes to the ticket booth to buy tickets for a Lakers game. Mr. Sherman is told that the game is sold out and no tickets are available. Which best explains why there are no basketball tickets available?
In a market, if quantity supplied is greater than quantity demanded what occurs?
Shortage
Surplus
Scarcity
Equilibrium
The point at which Supply and Demand curves meet is known as what?
Exchange Rate
Perfection
Equilibrium
Center point
The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are ________.
complements
normal goods
substitutes
inferior goods
In the above figure, what is the minimum supply price for the fourth gallon of ice cream?
$2.00
$3.00
$4.00
$5.00
Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?
The demand will probably go up
The demand will probably go down
A severe drought has damaged this year's lettuce crop. The initial effect on the lettuce market is a
decrease in the demand for lettuce.
decrease in the supply of lettuce.
decrease in both the demand and supply of lettuce.
rightward movement along the demand curve for lettuce.
Which of the following will NOT shift the supply curve for pick-up trucks?
a technological advance.
an increase in the price of a resource used to produce pick-up trucks.
a change in the number of firms supplying pick-up trucks.
a change in the price of pick-up trucks.
If a product is in shortage, we can conclude that its price
is in the equilibrium price level.
will fall in the near future.
is below the equilibrium price level.
is above the equilibrium price level.
Given the demand function is Qd = 200 - 5P and supply function is Qs = 100 + 5P. What is the quantity equilibrium?
100
150
200
125
If the current price is $800, how will market equilibrium be restored?
Consumers will bid up the price
Producers will lower the price
The price will not change
