MBA 701 - ECONOMIC ANALYSIS
FOR MANAGEMENT Practice Exam
1_ Attempt review scored 261.00 out of
290.00 (90%) Louisiana State
University
A fall in the price of flour, used in making cakes, is likely to ________ of cakes. -
answer- increase the supply
A market is in equilibrium when, at the market price: - answer- all of the above
As consumers' incomes decrease, the demand curve for bologna sandwiches shifts to
the right. Therefore bologna sandwiches are a(n) - answer- inferior good.
As consumers' incomes increase, the demand curve for Starbucks Latte shifts to the
right. Therefore Starbucks Latte are a(n) - answer- normal good.
Chicken wings and Coke are complements. Costs of coke production fall. At the same
time a government health report alleges that Chicken wings consumption causes
cancer. For Chicken Wings, the equilibrium price will ________ and the equilibrium
quantity will ___________. - answer- be indeterminate; be indeterminate
If the demand for gem-quality diamonds decreases AND the supply of gem-quality
diamonds decreases, what can be said about equilibrium price and quantity in this
market? - answer- Equilibrium quantity will fall, but the change in equilibrium price is
uncertain.
If the market is initially in equilibrium, decreasing number of firms will cause price
to__________ and quantity demanded to___________. - answer- rise; fall
If the market price of eggs rises at the same time as the market quantity of eggs
purchased decreases, this could have been caused by - answer- a decrease in supply
with no change in demand.
In which of the following cases will the effect on equilibrium output be indeterminate
(i.e., depend on the magnitudes of the shifts in supply and demand)? - answer- demand
decreases and supply increases
FOR MANAGEMENT Practice Exam
1_ Attempt review scored 261.00 out of
290.00 (90%) Louisiana State
University
A fall in the price of flour, used in making cakes, is likely to ________ of cakes. -
answer- increase the supply
A market is in equilibrium when, at the market price: - answer- all of the above
As consumers' incomes decrease, the demand curve for bologna sandwiches shifts to
the right. Therefore bologna sandwiches are a(n) - answer- inferior good.
As consumers' incomes increase, the demand curve for Starbucks Latte shifts to the
right. Therefore Starbucks Latte are a(n) - answer- normal good.
Chicken wings and Coke are complements. Costs of coke production fall. At the same
time a government health report alleges that Chicken wings consumption causes
cancer. For Chicken Wings, the equilibrium price will ________ and the equilibrium
quantity will ___________. - answer- be indeterminate; be indeterminate
If the demand for gem-quality diamonds decreases AND the supply of gem-quality
diamonds decreases, what can be said about equilibrium price and quantity in this
market? - answer- Equilibrium quantity will fall, but the change in equilibrium price is
uncertain.
If the market is initially in equilibrium, decreasing number of firms will cause price
to__________ and quantity demanded to___________. - answer- rise; fall
If the market price of eggs rises at the same time as the market quantity of eggs
purchased decreases, this could have been caused by - answer- a decrease in supply
with no change in demand.
In which of the following cases will the effect on equilibrium output be indeterminate
(i.e., depend on the magnitudes of the shifts in supply and demand)? - answer- demand
decreases and supply increases
