Self-Quiz Unit 2 - Chapter 3

In this exhibit (demand and supply curves), the highest price per unit that buyers would be willing to pay for 250 units is:

$10

The price of oranges falls. What happens in the market for apples, which are a substitute for oranges? Select one: a. The equilibrium price falls and the equilibrium quantity rises. b. The equilibrium price rises and the equilibrium quantity falls. c. The equilibrium price and quantity rise. d. The equilibrium price and quantity fall.

The equilibrium price and quantity fall

The primary difference between a change in supply and a change in the quantity supplied is:

a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve

In this exhibit (demand and supply curves), a price of $25 per unit will result in:

a surplus of 200 units

The law of demand implies that:

consumers will, all other things unchanged, buy more at lower prices

A market shortage occurs if the:

equilibrium price is above the market price

A decrease in the price of eggs, all other things unchanged, will result in a/an:

greater quantity of eggs demanded

If the price of a commodity increases as the result of increased demand, you would expect the:

quantity supplied to increase

After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered a/an:

inferior good

If the price in the market for a commodity is above the market equilibrium price, the:

quantity supplied exceeds the quantity demanded