Question 1

10 out of 10 points

Sugar and honey are viewed as substitutes for each other in many cooking
applications. All else equal, if the price of sugar rises, we would expect
Selected Answer:

D.

the demand for honey to increase.

Answers:

A.

the price of honey to decrease.

B.

the supply of honey to decrease.

C.

the demand for honey to decrease.

D.

the demand for honey to increase.

Question 2
10 out of 10 points

A market is in equilibrium
Selected
Answer:
Answers:

C.

if the amount producers want to sell is equal to the amount

consumers want to buy.
A.

if there are many buyers and sellers of the product.

B.

at all prices above that shown by the intersection of the supply and
demand curves.
C.

if the amount producers want to sell is equal to the amount

consumers want to buy.
D.

whenever the demand curve is downward-sloping and the supply

curve is upward-sloping.

Question 3
10 out of 10 points

If there is a shortage in the market for automobiles, then

Selected
Answer:

A.

the price of automobiles should begin to rise.

Answers:

A.

the price of automobiles should begin to rise.

B.

producers' inventories are too high.

C.

the quantity supplied by the producers is greater than the quantity

demanded by the consumers at the current price.
D.

the price of automobiles should begin to fall.

Question 4
10 out of 10 points

Everything else equal, in the case of a normal good, an increase in consumers'

incomes would shift the
Selected Answer:

D.

demand curve rightward.

Answers:

A.

demand curve leftward.

B.

both the demand and supply curve rightward.

C.

supply curve rightward.

D.

demand curve rightward.

Question 5
10 out of 10 points

Which of the following would most likely increase the supply of vanilla ice cream?
Selected
Answer:

A decrease in the price of milk (an ingredient in ice cream).

Answers:

A.

B.

An increase in the price of chocolate ice cream.

B.

A decrease in the price of milk (an ingredient in ice cream).

C.

A frozen treat manufacturer stops producing ice cream.

D.

An increase in the price of vanilla beans (an ingredient in vanilla ice

cream).

Question 6
0 out of 10 points

In the market for milk, an increase in the number of milk consumers will cause the
equilibrium price to _______ and the equilibrium quantity to ________ everything else
constant.
Selected Answer:

D.

decrease; increase

Answers:

A.

increase; increase
B.

increase; decrease
C.

decrease; decrease
D.

decrease; increase

Question 7
10 out of 10 points

Which of the following will not shift the demand curve for movie tickets?
Selected Answer:

C.

A change in the price of movie tickets.

Answers:

A.

A change in the income of movie-goers.

B.

A change in the quality of television programs.

C.

A change in the price of movie tickets.

D.

A change in the number of consumers.

Question 8
10 out of 10 points

Which of the following could shift the demand for a good to the right?
Selected Answer:

B.

An expectation of a future price increase.

Answers:

A.

A decrease in income, if the good is a normal good.

B.

An expectation of a future price increase.

C.

An increase in the price of a complementary good.

D.

A decrease in the number of consumers.

Question 9
10 out of 10 points

A price floor set above the market equilibrium price results in

Selected Answer:

C.

a surplus at the floor price.

Answers:

A.

no impact on the quantity that will be put on sale in that market.

B.

a shortage at the floor price.

C.

a surplus at the floor price.

D.

the most efficient use of our scarce resources.

Question 10
10 out of 10 points

The market supply curve of a particular product indicates the total quantities
Selected Answer:

A.

that sellers are willing and able to offer at alternative prices.

Answers:

A.

that sellers are willing and able to offer at alternative prices.

B.

that are actually sold during a given time period.

C.

of complements offered for sale.

D.

that buyers are willing to purchase at alternative prices.

Sunday, June 12, 2016 7:02:34 PM CDT