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.