Managerial economics and business strategy test bank 8th edtion baye prince

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PM yegandgPri…




Chapterg
02gMarketgForces:gDemandg
andgSupply


MultiplegChoicegQuestions


1. Ingagcompetitivegmarket,gthegmarketgdemandgisgQdg=g60g-
g6PgandgthegmarketgsupplygisgQsg=g4P.gAg pricegceilinggofg$3gwillgresult
ginga


A. shortagegofg30gunits.
B. shortagegofg15gunits.
C. surplusgofg30gunits.
D.surplusgofg12gunits.

2. Ingagcompetitivegmarket,gthegmarketgdemandgisgQdg=g60g-
g6PgandgthegmarketgsupplygisgQsg=g4P.gTheg fullgeconomicgpricegundergag
pricegceilinggofg$3gis



A. 6.
B. 7.
C. 8.
D. 9.




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3. Thegbuyergsidegofgthegmarketgisgknowngasgthe:


A. incomegside.
B. demandgside.
C. supplygside.
D.sellergside.

4. Theglawgofgdemandgstatesgthat,gholdinggallgelsegconstant:


A. asgpricegfalls,gdemandgwillgfallgalso.
B. asgpricegrises,gdemandgwillgalsogrise.
C. priceghasgnogeffectgongquantitygdemanded.
D.asgpricegfalls,gquantitygdemandedgrises.

5. WhichgofgthegfollowinggwouldgnotgshiftgthegdemandgforggoodgA?



A. DropgingpricegofggoodgA.
B. DropgingpricegofggoodgB.
C. Consumergincome.
D.ChangegingtheglevelgofgadvertisinggofggoodgA.

6. ChangesgingthegpricegofggoodgAgleadgtogagchangegin:



A. demandgofggoodgA.
B. demandgofggoodgB.
C. thegquantitygdemandedgofggoodgA.
D.thegquantitygdemandedgofggoodgB.



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7. Agchangegingincomegwillgnotgleadgto:


A. agmovementgalonggthegdemandgcurve.
B. agleftwardgshiftgofgthegdemandgcurve.
C. agrightwardgshiftgofgthegdemandgcurve.
D.allgofgthegstatementsgassociatedgwithgthegquestiongaregcorrect.

8. IfggoodgAgisganginferiorggood,gangincreasegingincomegleadsgto:


A. agdecreasegingthegdemandgforggoodgB.
B. agdecreasegingthegdemandgforggoodgA.
C. angincreasegingthegdemandgforggoodgA.
D.nogchangegingthegquantitygdemandedgofggoodgA.

9. Whichgofgthegfollowinggisgprobablygnotgagnormalggood?



A. designergdresses.
B. lobster.
C. macaronigandgcheese.
D. expensiveg automobiles.

10. Angincreasegingthegpricegofgsteakgwillgprobablygleadgto:



A. angincreasegingdemandgforgchicken.
B. angincreasegingdemandgforgsteak.
C. nogchangegingthegdemandgforgsteakgorgchicken.
D.angincreasegingthegsupplygforgchicken.



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11. Whichgofgthegfollowinggpairsgofggoodsgaregprobablygcomplements?


A. Televisionsgandgrollergskates.
B. Frozengyogurtgandgicegcream.
C. Steakgandgchicken.
D.Hamburgersgandgketchup.

12. IfgAgandgBgaregcomplements,gangincreasegingthegpricegofggoodgAgwould:


A. havegnogeffectgongthegquantitygdemandedgofgB.
B. leadgtogangincreasegingdemandgforgB.
C. leadgtogagdecreasegingdemandgforgB.
D.nonegofgthegstatementsgassociatedgwithgthisgquestiongaregcorrect.

13. Graphically,gagdecreasegingadvertisinggwillgcausegthegdemandgcurvegto:



A. becomegsteeper.
B. shiftgrightward.
C. becomegflatter.
D.shiftgleftward.

14. Persuasiveg advertisingg influencesg demandg by:



A. providingginformationgaboutgthegavailabilitygofgagproduct.
B. offeringgreducedgpricesgforgthegproduct.
C. alteringgthegunderlyinggtastesgofgconsumers.
D.nonegofgthegstatementsgaregcorrect.



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g inganygmanner.gThisgdocumentgmaygnotgbegcopied,gscanned,gduplicated,gforwarded,gdistributed,gorgpostedgongagwe
bsite,gingwholegorgpart.




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