ECO210 Quiz 4
Which of the following is NOT correct?
A change in price will change the entire demand schedule for a good but will not change the demand curve.
Which of the following is NOT true about factors that cause a change in supply?
A change in the market price of a good will change ALL of the quantities supplied and shift the supply curve.
Which of the following is NOT correct?
A change in the market price of a good will change the supply of that good, which is shown by a shift of the entire supply curve, which means that all quantities supplied at all prices have changed.
Which of the following is NOT true?
A change in the price of a good will change its demand (shift the entire demand curve).
Which of the following is NOT true about factors that change the equilibrium price?
If both supply and demand increases, it is certain that the equilibrium price will increase.
Which of the following is NOT correct about price ceilings?
Price ceilings benefit all consumers because everyone can get the good at the lower government mandated price.
Which of the following is NOT true about price floors?
Price floors result in shortages, which hurts producers.
Which of the following causes a shortage?
Price is held below the equilibrium price resulting in quantity demanded exceeding quantity supplied.
Which curve has a positive slope where the quantity increases as the price increases?
Supply Curve
Which of the following is NOT true about what changes demand (what changes all of the quantities demanded in the demand schedule and shifts the demand curve)?
An increase in the price of a product will decrease the demand for the product.That is, it will decrease all of the quantities demanded at each and every price.
In which direction does the supply curve shift when there is an increase in supply?
Downward to the right.
Which of the following will cause the Equilibrium Price to rise?
No change in supply but an increase in demand.
What causes a decrease in the quantity demanded of a good?
A increase in the price of the good.
Which of the following is NOT true about the factors that cause a change in demand?
A normal good is one in which its demand DECREASES as consumer income increases.
Which of the following is NOT true?
A price floor is when the government enforces a market price that is less than the natural equilibrium price.
Which of the following is NOT true?
A shortage exists when the quantity demanded is just equal to the quantity supplied.
What causes the quantity supplied of a good to rise?
Increase in the market price of the good.
Which of the following causes a surplus?
The minimum price is set above the equilibrium price resulting in quantity supplied exceeding quantity demanded.
Which of the following will NOT change the supply of lead pencils?
The price of pencils.
What is the difference between the information in the Supply Schedule of a good and its Supply Curve?
There is no difference.
