3. If the market price is below equilibrium price, quantity demanded: (Points: 5)
is less than quantity supplied.
is equal to quantity supplied.
is greater than quantity supplied.
remains the same.
4. At equilibrium, quantity demanded __________ equals quantity supplied. (Points: 5)
5. When the market price is above equilibrium price, the market price will be driven: (Points: 5)
up by buyers.
up by sellers.
down by buyers
down by sellers.
7. An increase in the price of a complement will result in a(n) __________ for the product. (Points: 5)
decrease in the quantity demanded
increase in the quantity demanded
decrease in the demand
increase in the demand
8. If is a substitute for , and the price of coffee rises, what will happen? (Points: 5)
Demand for tea will decrease.
Demand for tea will increase.
The quantity demanded of coffee will rise.
The quantity demanded of tea will decrease.
9. The most important determinant of the of elasticity of demand is: (Points: 5)
whether or not the item is a big ticket item.
whether or not the item is a luxury or not.
how many uses the product has.
the availability of substitutes.
10. If a car dealership decides to offer a rebate to reduce the selling price of its cars and as a result finds an increase in its total revenues, then the demand for cars from this dealership is: (Points: 5)
11. Total revenue will increase if price: (Points: 5)
rises and demand is elastic.
rises and demand is unit elastic.
falls and demand is inelastic.
falls and demand is elastic.
12. Cross elasticity of demand measures the response in: (Points: 5)
the quantity of one good demanded to a change in the price of another good.
the income of consumers to the change in the price of goods.
the price of a good to a change in the quantity of another good demanded.
quantity of one good demanded when the quantity demanded of another good changes.
13. A person would be maximizing her total utility when: (Points: 5)
she had a consumer surplus.
her marginal utility was zero.
her marginal utility was equal to her total utility.
she had no consumer surplus.
14. Melissa says she will have to be paid in order to even try Jason’s cooking, so her marginal utility for Jason’s cooking is: (Points: 5)
15. According to the general utility formula, the marginal utility of a good divided by the price of that good is: (Points: 5)
less that negative one.
equal to one.
greater than one.
equal to zero.
16. If your marginal utility from your last session with your personal trainer is equal to the price she charged you, then: (Points: 5)
you have had exactly the right number of sessions.
you have had too many sessions.
you have not had enough sessions.
there is no way to determine whether you have had enough sessions.
17. A decrease in the demand for a service means that the: (Points: 5)
demand curve shifts to the right.
demand curve shifts to the left.
supply curve shifts to the right.
supply curve shifts to the left.
18. The market demand curve is derived: (Points: 5)
so that it slopes downward and to the left as quantity rises.
by totaling the average demands for products in all markets.
by horizontally summing potential buyers’ individual demand curves.
by vertically summing the demand curves of individuals in the market.
19. An increase in supply means that quantity supplied rises: (Points: 5)
at least one price.
at a few prices.
at most prices.
at all prices.
20. When the market price is lower than the equilibrium price, there is: (Points: 5)
both a shortage and a surplus.
neither a shortage nor a surplus.
Level/Year: 2 yr