Micro Chapter 3 Quiz
(Figure: Predicting Demand Shifts 2) What would cause a shift from D1 to D2?
a new study that shows that honey cures cancer
Supply is defined as:
the maximum amount of a product that sellers are willing and able to provide for sale over a particular time period at various prices, holding all other relevant factors constant.
(Figure: Interpreting a Market Graph) The graph represents:
the law of supply.
(Table) According to the table, the equilibrium price is _____, and the equilibrium output is _____ units.
$10; 60
(Figure: Individual and Market Demand Curves) According to the graph, the market quantity demanded at $20 is:
10.
(Figure: Interpreting Supply Shifts 3) When the supply shifts from S0 to S1 (a leftward shift of the supply curve), the equilibrium quantity changes from:
20 units to 15 units
The demand for gasoline is rising. Which statement describes a possible cause?
Consumers expect prices to rise in the near future.
Which graph shows an increase in quantity supplied?
Price vs Quantity graph. Supply curve arrow pointing a to b going up the line
In general terms, which item is an example of an inferior good?
a city bus
(Figure: Interpreting Demand Curves) In the demand curve shown, an increase in price from $1 to $2 will:
cause quantity demanded to fall from 30 units to 20 units.
Which type of payment would NOT be a market transaction?
payment made to a disaster victim
(Figure: Supply and Demand for Shoes) If the price of shoes is $60, then we:
have a surplus of shoes.
Which of these circumstances would NOT affect the supply of new automobiles?
higher interest rates for new car financing
(Figure: Interpreting Supply Shifts 2) A shift to the right of the supply curve could be caused by a(n):
improvement in production technology.
When quantity demanded in a market equals quantity supplied, then the:
market is in equilibrium
A market exists when:
people exchange money for goods and services.
Other factors held constant, as the price of an iPad rises, the:
quantity demanded for iPads falls.
At any price below the equilibrium price:
the quantity demanded exceeds the quantity supplied in the market.