Question 1

When supply falls and demand stays the same,

Accepted Answer

A)  equilibrium price rises.
B)  equilibrium price falls.
C)  equilibrium price stays the same.

Question 2

If the price system is allowed to function without interference and a surplus occurs,quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.

Accepted Answer

A)  rise,rise
B)  fall,fall
C)  rise,fall
D)  fall,rise

Question 3

When the price is $5

Accepted Answer

A)  quantity supplied is greater than quantity demanded and,therefore,price must rise to get to equilibrium.
B)  quantity supplied is greater than quantity demanded and,therefore,price must fall to get to equilibrium.
C)  quantity demanded is greater than quantity supplied and,therefore,price must rise to get to equilibrium.
D)  quantity demanded is greater than quantity supplied and,therefore,price must fall to get to equilibrium.

Question 4

A supply schedule may be depicted

Accepted Answer

A)  only by a table.
B)  only by a graph.
C)  by both a table and a graph.
D)  by neither a table nor a graph.

Question 5

If demand rises,what happens to equilibrium price and quantity?

Accepted Answer

Price rise...

Question 6

If price were $12,there would be _____ (shortage or surplus)of about _____.

Accepted Answer

The answer of If price were $12,there would be _____...

Question 7

As price declines,quantity demanded goes _______ and quantity supplied goes ________.

Accepted Answer

A)  up,up
B)  down,down
C)  up,down
D)  down,up

Question 8

-A)Is a price of $26 a price ceiling or a price floor?
B)Is there a shortage or a surplus?
C)How much is it?

Accepted Answer

A)Floor
B)...

Question 9

The price system is constantly sending __________ and ___________ thousands of signals.

Accepted Answer

The answer of The price system is constantly sending __________...

Question 10

For there to be demand for a good,people must

Accepted Answer

A)  want the good more than they want other goods.
B)  know the prices of all other goods.
C)  feel there are few substitutes for the good.
D)  need the gooD.
E)  be willing and able to buy the good at the market price.

Question 11

Which statement is true?

Accepted Answer

A)  The quantity demanded is determined by the quantity supplied.
B)  The quantity supplied is determined by the quantity demanded.
C)  The quantity demanded is determined by sellers and the quantity supplied is determined by buyers.
D)  None of these statements are true.

Question 12

"The higher the price of a good or service,the greater the quantity that people are willing to sell" is

Accepted Answer

A)  the law of demand
B)  the law of supply
C)  neither the law of demand or the law of supply

Question 13

-In the graph shown above,if market price were $23 there would be

Accepted Answer

A)  a surplus.
B)  a shortage.
C)  a surplus and a shortage.
D)  neither a surplus nor a shortage.

Question 14

-Equilibrium price is _____.

Accepted Answer

The answer of 
-Equilibrium price is _____....

Question 15

If the quantities in the demand schedule in the table above were reduced by 2 units at each price,you would conclude that

Accepted Answer

A)  demand increased.
B)  demand decreased.
C)  the demand curve shifted to the right.
D)  both demand increased and the demand curve shifted to the right.

Question 16

The __________ is the price of money (loanable funds) .

Accepted Answer

A)  wage
B)  rent
C)  demand
D)  interest rate

Question 17

Which situation below would represent a shortage in the oil market?

Accepted Answer

A)  Quantity demanded is 5.2 million;quantity supplied is 5.1 million.
B)  Market price $75.00 per barrel;equilibrium price $81.00 per barrel.
C)  Market price $81.00 per barrel;equilibrium price $75.00 per barrel.
D)  Quantity supplied this year is 25% greater than quantity supplied last year.

Question 18

A increase in the supply of loanable funds will ___________ interest rates.

Accepted Answer

A)  raise
B)  lower
C)  not effect

Question 19

Which statement is true?

Accepted Answer

A)  Rent control is a price floor.
B)  A usury law is a price floor.
C)  The minimum wage law is a price floor.
D)  None of these statements are true.

Question 20

If the equilibrium price of an hour with a tax accountant is $65 and the market price is currently $55,then there is a

Accepted Answer

A)  surplus of accountants
B)  shortage of accountants
C)  equilibrium

Exam 4: Supply and Demand

For there to be demand for a good,people must

Correct AnswerverifiedShow Answer

Which situation below would represent a shortage in the oil market?

Correct AnswerverifiedShow Answer

If price were $12,there would be _____ (shortage or surplus)of about _____.

Correct AnswerverifiedShow Answer

If the quantities in the demand schedule in the table above were reduced by 2 units at each price,you would conclude that

Correct AnswerverifiedShow Answer

If the price system is allowed to function without interference and a surplus occurs,quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.

Correct AnswerverifiedShow Answer

The __________ is the price of money (loanable funds) .

Correct AnswerverifiedShow Answer

A increase in the supply of loanable funds will ___________ interest rates.

Correct AnswerverifiedShow Answer

If the equilibrium price of an hour with a tax accountant is $65 and the market price is currently $55,then there is a

Correct AnswerverifiedShow Answer

-Equilibrium price is _____.

Correct AnswerverifiedShow Answer

A supply schedule may be depicted

Correct AnswerverifiedShow Answer

As price declines,quantity demanded goes _______ and quantity supplied goes ________.

Correct AnswerverifiedShow Answer

If demand rises,what happens to equilibrium price and quantity?

Correct AnswerverifiedPrice rise...View AnswerShow Answer

The price system is constantly sending __________ and ___________ thousands of signals.

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When the price is $5

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-A)Is a price of $26 a price ceiling or a price floor? B)Is there a shortage or a surplus? C)How much is it?

Correct AnswerverifiedA)FloorB)...View AnswerShow Answer

When supply falls and demand stays the same,

Correct AnswerverifiedShow Answer

-In the graph shown above,if market price were $23 there would be

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Which statement is true?

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"The higher the price of a good or service,the greater the quantity that people are willing to sell" is

Correct AnswerverifiedShow Answer

Correct Answer
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If price were $12,there would be _ (shortage or surplus)of about _.

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If the price system is allowed to function without interference and a surplus occurs,quantity demanded will _ and quantity supplied will _ until the price falls to its equilibrium.

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As price declines,quantity demanded goes _ and quantity supplied goes __.

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Price rise...
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The price system is constantly sending and _ thousands of signals.

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A)Floor
B)...
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