Micro Quiz #2

George likes apples and at a price of $2 a pound he purchases 10 apples. When George goes to the store this week he observes that the price of apples has fallen to $1 a pound. George decides to purchase 15 apples. What is the slope of Georges demand curve? a) -5 b) -1 c) -0.2 d) -0.5

-0.2

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in: a) An increase in price and quantity b) a decrease in price and an increase in quantity c) an increase in price and a decrease in quantity d) a decrease in both price and quantity

An increase in price and quantity

A curve that shows the relationship between the price and quantity supplied during a particular period, all other things unchanged, is the: a) Production Possibilities Curve b) Quantity function c) Supply curve d) Price curve

Supply curve

Which would not cause the supply curve to shift? a) a change in the prices of related goods b) a change in the price of the good c) a change in factor costs d) a change in technology

a change in the price of the good

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period? a) an increase in the price of almond milk (a substitute) b) a fall in the price of milk c) a decrease in the price of cookies ( a complement) d) an increase in income

a fall in the price of milk

A decrease in the price of eggs, all other things unchanged, will result in a(n): a) increase in the supply of eggs b) increase in the demand for eggs c) greater quantity of eggs demanded d) greater quantity of eggs supplied

greater quantity of eggs demanded

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(n): a) substitute good b) inferior good c) normal good d) complementary good

inferior good

The relationship between the quantity of a good or service sellers are willing to offer for sale at different prices is: a) equilibrium b) supply c) demand d) disequilibrium

supply

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

the equilibrium price and quantity rise

There is an increase in income. What happens in the market for steak, a normal good? a) the equilibrium price and quantity fall b) The equilibrium price falls, and the equilibrium quantity rises c) the equilibrium price rises, and the equilibrium quantity falls d) the equilibrium price and quantity rise

the equilibrium price and quantity rise