Econ 202 Supply and Demand Quiz

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right. - prices rise - equilibrium is achieved - costs of production fall - there is a population increase

costs of production fall

Which of the following would reduce the supply of microcomputers? - a technological improvement that lowers the cost of producing the computers - higher wage rates for the workers that assemble the computers - a reduction in the price of computer chips used to produce the computers - a reduction in the price of computers.

higher wage rates for the workers that assemble the computers

The demand schedule for a good: - indicates the quantity that people will buy at the prevailing price. - indicates the quantities that suppliers will sell at various market prices. - is determined primarily by the cost of producing the good. - indicates the quantities that will be purchased at alternative market prices.

indicates the quantities that will be purchased at alternative market prices.

After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is: - no change; only the supply curve for beef is likely to be affected. - a shift of the demand curve for beef to the left - a movement down along the demand curve for beef to the right. - a shift of the demand curve for beef to the right.

a shift of the demand curve for beef to the left

Any given demand or supply curve is based on the ceteris paribus assumption that ___________________. - everything is variable. - all else is held equal - no one knows which variables will change and which will remain constant. - what is true for the individual is not necessarily true for the whole.

all else is held equal

The demand curve for a typical good has a(n): - negative slope because some consumers switch to other goods as the price rises. - negative slope because consumer incomes fall as the price of the good rises. - negative slope because the good has less "snob appeal" as its price falls. - inverse slope because as the price goes up, the good has more profitability.

negative slope because some consumers switch to other goods as the price rises.

The downward slope of the demand curve again illustrates the pattern that as _____________ rises, _________________ decreases. - quantity demanded, price - quantity supplied, quantity demanded - price, quantity demanded - price, quantity supplied

price, quantity demanded

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of: - the demand curve, as consumers try to economize because of the shortage. - both the supply and demand curves. - the supply curve - the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price.

the supply curve

According to the law of supply: - there is a direct relationship between price and the quantity supplied. - there is an inverse relationship between price and the quantity supplied. - there is a direct relationship between price and quantity demanded. - there is an inverse relationship between price and quantity demanded.

there is a direct relationship between price and the quantity supplied.

When quantity demanded decreases in response to a change in price: - the demand curve shifts to the right. - the demand curve shifts to the left. - there is a movement down along the demand curve. - there is a movement up along the demand curve

there is a movement up along the demand curve