MBA 651 - Economic Analysis - Supply
+ Demand Chapter 2 with correct
answers 100%
Which of the following describes supply and demand analysis?
1. Mostly quantitative
2. Use to predict pricing trends
3. A forecasting tool
4. A qualitative tool - Correct Answers 2, 3, 4
According to the law of demand, as market price decreases, quantity demanded ____. - Correct
Answers increases
An increase in demand is best characterized by which of the following?
1. Demand curve shifts to the right
2. Demand curve shifts to the left
3. A downward movement along the demand curve
4. An upward movement along the demand curve - Correct Answers 1. demand curve shifts to
the right
What do economists use to describe the amount of good X that will be purchased at different
prices of good X, at different prices of related goods, and at alternative income levels? - Correct
Answers demand function
Which area forms consumer surplus? - Correct Answers The area below the demand curve and
above the price.
, True or false: Supply and demand analysis enables managers to see the "big picture". - Correct
Answers True
Which of the following does a market supply curve show? - Correct Answers The quantity that
all producers are willing and able to produce at all prices
According to the law of demand, as market price increases, quantity demanded ____. - Correct
Answers decreases
If the price of a good rises, this will cause: - Correct Answers an upward movement along the
demand curve
Which of the following will cause a decrease in the supply of "farm-to-fork" vegetables?
1. An increase in the price of fertilizer used on these farms
2. A decrease in the price of "farm-to-fork" vegetables
3. A reduction in the number of "farm-to-fork" vegetable producers
4. An increase in government regulations on agriculture - Correct Answers 1, 3, 4
The demand function indicates that the quantity of a good consumed depends on:
1. the effect of the demand shifters
2. the income of buyers
3. the price of the good
4. the price of inputs - Correct Answers 1, 2, 3
The difference between what consumers are willing to pay for a good or service and the market
price is known as _____. - Correct Answers consumer surplus
+ Demand Chapter 2 with correct
answers 100%
Which of the following describes supply and demand analysis?
1. Mostly quantitative
2. Use to predict pricing trends
3. A forecasting tool
4. A qualitative tool - Correct Answers 2, 3, 4
According to the law of demand, as market price decreases, quantity demanded ____. - Correct
Answers increases
An increase in demand is best characterized by which of the following?
1. Demand curve shifts to the right
2. Demand curve shifts to the left
3. A downward movement along the demand curve
4. An upward movement along the demand curve - Correct Answers 1. demand curve shifts to
the right
What do economists use to describe the amount of good X that will be purchased at different
prices of good X, at different prices of related goods, and at alternative income levels? - Correct
Answers demand function
Which area forms consumer surplus? - Correct Answers The area below the demand curve and
above the price.
, True or false: Supply and demand analysis enables managers to see the "big picture". - Correct
Answers True
Which of the following does a market supply curve show? - Correct Answers The quantity that
all producers are willing and able to produce at all prices
According to the law of demand, as market price increases, quantity demanded ____. - Correct
Answers decreases
If the price of a good rises, this will cause: - Correct Answers an upward movement along the
demand curve
Which of the following will cause a decrease in the supply of "farm-to-fork" vegetables?
1. An increase in the price of fertilizer used on these farms
2. A decrease in the price of "farm-to-fork" vegetables
3. A reduction in the number of "farm-to-fork" vegetable producers
4. An increase in government regulations on agriculture - Correct Answers 1, 3, 4
The demand function indicates that the quantity of a good consumed depends on:
1. the effect of the demand shifters
2. the income of buyers
3. the price of the good
4. the price of inputs - Correct Answers 1, 2, 3
The difference between what consumers are willing to pay for a good or service and the market
price is known as _____. - Correct Answers consumer surplus
