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1 | |
In recent months, the demand for gasoline has increased and the supply has decreased. Which of the following must have been the result? |
| | A) | Equilibrium price has increased |
| | B) | Equilibrium price has decreased |
| | C) | Equilibrium quantity has increased |
| | D) | Equilibrium quantity has decreased |
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2 | |
If the demand for premium coffee drinks increases faster than the supply: |
| | A) | both equilibrium price and quantity will fall |
| | B) | both equilibrium price and quantity will rise |
| | C) | equilibrium price will rise and equilibrium quantity will fall |
| | D) | equilibrium price will fall and equilibrium quantity will rise |
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3 | |
Suppose peaches can either be processed--that is, they can be canned, frozen, or made into jams and pies--or they can be sold fresh. A change in tastes in favor of fresh peaches will: |
| | A) | increase both the demand and supply of fresh peaches |
| | B) | increase the demand but not the supply of fresh peaches |
| | C) | increase the supply but not the demand for fresh peaches |
| | D) | increase the demand but decrease the supply of fresh peaches |
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4 | |
Use the following diagram to answer the next question.
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Refer to the diagram. If there is a preset price of M in this market: |
| | A) | the demand curve will shift to the left |
| | B) | the supply curve will shift to the right |
| | C) | a surplus will occur and a secondary market will likely emerge |
| | D) | a shortage will occur and a secondary market will likely emerge |
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5 | |
Use the following diagram to answer the next question.
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Refer to the diagram. Which of the following will unambiguously raise the price above $5 and reduce the quantity below 200? |
| | A) | A decrease in demand |
| | B) | A decrease in supply |
| | C) | A simultaneous decrease in demand and decrease in supply |
| | D) | A simultaneous increase in demand and decrease in supply |
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6 | |
Use the following diagram to answer the next question.
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Refer to the diagram. At a preset price of $5 in this market: |
| | A) | a surplus will occur and a secondary market will emerge |
| | B) | the supply curve will shift to the left and a secondary market will emerge |
| | C) | the demand curve will shift to the right and a secondary market will emerge |
| | D) | neither a shortage nor a surplus will occur |
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7 | |
Use the following to answer the next question:
| Quantity demanded | Price | | 8,000 | $40 | | 10,000 | 35 | | 12,000 | 30 | | 14,000 | 25 | | 16,000 | 20 |
Refer to the table, which shows the demand schedule for a particular concert being held at a 10,000 seat amphitheatre. If the concert promoters set the ticket price at $30: |
| | A) | 2000 tickets will remain unsold |
| | B) | there will be a shortage of 4000 tickets |
| | C) | ticket scalping will likely emerge |
| | D) | there will be a surplus of 4000 tickets |
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8 | |
A nonpriced good is one for which: |
| | A) | quantity demanded always exceeds quantity supplied |
| | B) | quantity supplied always exceeds quantity demanded |
| | C) | the demand curve is horizontal at a zero price |
| | D) | there is common ownership |
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9 | |
After his car broke down on a hot day, Jack walked more than a mile to the nearest convenience store and paid $1 for a bottle of water. Considering his thirst, he would willingly have paid $3. Jack's consumer surplus is: |
| | A) | $1 |
| | B) | $2 |
| | C) | $3 |
| | D) | $4 |
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10 | |
Use the following diagram to answer the next question.
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Refer to the diagram. In this market, joint consumer and producer surplus is maximized at: |
| | A) | price M |
| | B) | price B |
| | C) | output G |
| | D) | output H |
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