Microeconomics 2

If there is an increase in the quantity demanded of a good there has been: A. A movement from left to right along a given demand curve B. A movement from right to left along a given demand curve C. A shift to the right of the demand curve D. A shift to the left of the demand curve

A. A movement from left to right along a given demand curve

A point on a demand curve indicates: A. A particular price and quantity demanded B. A combination of two different goods which are demanded at the same price C. A combination where quantity demanded is equal to quantity supplied D. A ratio of buying price to selling price

A. A particular price and quantity demanded

The difference between demand and quantity demanded is that_____: A. There is no difference between demand and quantity demanded B. Quantity demanded is in relationship to a price C. Demand is set of points of price and quantity D. Demand is represented by various quantities that are purchased at that single price

B. Quantity demanded is in relationship to a price

If there is an increase in the quantity demanded of a good there has been a. A movement from left to right along a given demand curve b. A movement from right to left along a given demand curve c. A shift to the right of the demand curve d. A shift to the left of the demand curve

a. A movement from left to right along a given demand curve

A point of a demand curve indicates a. A particular price and the corresponding quantity demanded by consumers b. A combination of two different goods which are demanded at the same price c. A combination where quantity demanded is equal to quantity supplied d. A ratio of buying price to selling price

a. A particular price and the corresponding quantity demanded by consumers

Which of the following does NOT influence the demand curve for a commodity? a. Amount of supply b. Level of income c. Tastes of consumers d. Size of population

a. Amount of supply

The law of demand states that a. Price and quantity demanded are inversely related b. The larger the number of buyers in a market, the lower the product price will be c. Price and quantity demanded are directly related d. Consumers will buy more of a given product at high prices than they will at low prices

a. Price and quantity demanded are inversely related

The theory that the quantity of a good varies inversely with the price is an indication of: a. The law of demand b. The law of supply c. A shift in the demand curve d. A shift in the supply curve The equilibrium price and quantity

a. The law of demand

A store owner finds that customers are willing to pay more for umbrellas on rainy days. a. This represents a shift of the demand curve b. This represents a movement along the demand curve

a. This represents a shift of the demand curve

People buy more long-stem roses the week of Valentine's Day, even though the prices are higher than at other times during the year. a. This represents a shift of the demand curve b. This represents a movement along the demand curve

a. This represents a shift of the demand curve

The primary difference between a change in demand and a change in the quantity demanded is a. A change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve b. A change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve c. Both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions d. Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions e. Only a change in quantity demanded is related to the demand curve, and a change in demand is related to shifts in the supply curve

b. A change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve

Assume that the demand schedule for product C is downsloping. If the price of C fall from $2.00 to $1.75 a. A smaller quantity of C will be demanded b. A larger quantity of C will be demanded c. The demand for C will increase d. The demand for C will decrease

b. A larger quantity of C will be demanded

The Law of Demand states that: a. Consumers will exhaust their incomes as they purchase goods and services at given absolute prices b. At lower relative prices, a large quantity will be purchased than at higher relative prices c. There is a direct relationship between relative price and quantity demanded d. If the price of a good increases both relatively and absolutely, there will be no change in quantity demanded

b. At lower relative prices, a large quantity will be purchased than at higher relative prices

As we move up along the demand function (from right to left) a. Price decreases b. Quantity demanded decreases c. Quantity demanded increases d. Quantity supplied increases

b. Quantity demanded decreases

The sharp rise in the price of gasoline leads many commuters to join carpools in order to reduce their gasoline purchases. a. This represents a shift of the demand curve b. This represents a movement along the demand curve

b. This represents a movement along the demand curve

When XYZ Telecom, a long distance provider, offered reduced rated on weekends, the volume of weekend calling increased sharply. a. This represents a shift of the demand curve b. This represents a movement along the demand curve

b. This represents a movement along the demand curve

Production possibilities a relation showing the various amounts of a commodity that buyers would be willing and able to purchase at alternative prices during a given period of time is a. Supply b. Demand c. Equilibrium d. Disequilibrium

b. demand

According to the law of demand a. The demand curve is positively sloped b. Price and demand are directly related c. Price quantity demanded are inversely related d. Quantity purchased is equivalent to quantity demanded e. There is a negative relationship between price and demand

c. Price quantity demanded are inversely related

If the price of a commodity increases, you would expect the a. Demand to decrease b. Quantity demanded to increase c. Quantity demanded to decrease d. Demand curve to shift to the right e. Demand curve to shift to the left

c. Quantity demanded to decrease

Fill in the blank: A change _______ refers to a movement along a demand curve, while a change in _______ refers to a shift in the demand curve a. Demand, price b. Demand, quantity demanded c. Quantity demanded, demand d. Quantity demanded, price

c. Quantity demanded, demand

The Anderson neckwear company is faced with a downward sloping demand curve for its neckties. Two months ago, the company sold 1,000 neckties at $20 per necktie. Last month, the company was able to sell only 800 neckties at the same price of $20 per necktie. Evidently, the company has experienced: a. A decrease in quantity demanded b. An increase in demand c. A shift of the demand curve to the right d. A shift of the demand curve to the left e. No change in demand

d. A shift of the demand curve to the left

In constructing a demand curve for product X a. Consumer preferences are assumed constant b. The prices of other goods are assumed given c. Money incomes are assumed constant d. All of the above assumptions are made

d. All of the above assumptions are made

The following is a correct definition for the demand curve for x: a. How much x will be bought at the equilibrium price b. How, as people's incomes rise their purchases of x will increase c. How the amount of money people spend to purchase x, changes as the price changes d. How the amount of x that would be bought changes at the price changes

d. How the amount of x that would be bought changes at the price changes

A demand curve a. Slopes upward and to the right b. Is constructed based on the assumption that income is rising c. Is constructed based on the assumption that an inverse relationship exists between price and income d. Shows the inverse relationship between price and quantity demanded

d. Shows the inverse relationship between price and quantity demanded

The following is the correct definition of the demand curve for commodity X (select the best alternative). It shows, for a given market: a. How much of X that would be bought at the equilibrium price b. How, as people's incomes rise and they have more money to spend, their purchases of X would increase and by how much c. How the amount of money people spend to purchase X changes as the price they must pay for it changes d. The amount of X that would be bought each period, at each and any price, assuming other factors influencing demand (income, tastes, etc) remain constant

d. The amount of X that would be bought each period, at each and any price, assuming other factors influencing demand (income, tastes, etc) remain constant

Demand is best defined as a. The amount of a commodity that buyers would be willing and able to purchase at a specific price b. The price that buyers would be willing and able to pay for a specific quantity of a good c. A relation showing the various amounts of a commodity that buyers would be willing to purchase at alternative prices during a given period of time d. A relation showing the various amounts of a commodity that buyers would be able to purchase at alternative prices during a given period of time e. A relation showing the various amounts of a commodity that buyers would be willing and able to purchase at alternative prices during a given period of time

e. A relation showing the various amounts of a commodity that buyers would be willing and able to purchase at alternative prices during a given period of time

The phrase "other things equal," or "other things constant" when applied to the demand for commodity X, means this: a. The price of X is held constant b. Both buyer incomes and the price of X are held constant c. Buyer incomes, tastes, and price of X are held constant d. All factors that might influence the demand for X, including the price of X, are held constant e. All factors that might influence the demand of X, except its price are held constant

e. All factors that might influence the demand of X, except its price are held constant