ECON-B 251 EXAM LATEST
A normal good is a good for which
demand increases when income increases.
A change in which of the following alters buying plans for cars but
does NOT shift the demand curve for cars?
A 20 percent increase in the price of a car.
A fall in the price of a good causes producers to reduce the quantity
of the good they are willing to produce. This fact illustrates
the law of supply.
Which of the following shifts the supply curve rightward?
a decrease in the price of the resources used to produce the good
Which of the following correctly describes how price adjustments
eliminate a shortage? As the price _____, the quantity demanded
_____ while the quantity supplied _____.
increases, decreases, increases
You observe that the equilibrium price of a good rises and the
equilibrium quantity decreases. These observations can be the result
of the _____ curve shifts _____.
supply, leftward
You notice that the equilibrium price and quantity of wheat both
decrease. This observation can be the result of the _____ curve for
wheat shift _____.
END OF
PAGE
1
, ECON-B 251 EXAM LATEST
demand, left
If the supply of spring water decreases and at the same time the
demand for spring water increases, the equilibrium price _____ and
the equilibrium quantity _____.
increases, might increase, decrease or stay the same
The price elasticity of demand for furniture is estimated at 1.3. This
value means a one percent increase in the _____ will _____ the
_____ by _____ percent.
price of furniture, decrease, quantity of furniture demanded, 1.3
Suppose a rise in the price of peaches from $5.50 to $6.50 per bushel
decreases the quantity demanded from 12,500 to 11,500 bushels. The
price elasticity of demand is ___.
0.5
Demand is perfectly inelastic when
shifts of the supply curve results in no change in quantity demanded.
Business people often speak about price elasticity without actually
using the term. Which statement describes a good with an elastic
demand?
"My customers are real shoppers. After I cut my prices just a few cents
below those my competitors charge, customers have been flocking to my
store and sales are booming."
END OF
PAGE
2
A normal good is a good for which
demand increases when income increases.
A change in which of the following alters buying plans for cars but
does NOT shift the demand curve for cars?
A 20 percent increase in the price of a car.
A fall in the price of a good causes producers to reduce the quantity
of the good they are willing to produce. This fact illustrates
the law of supply.
Which of the following shifts the supply curve rightward?
a decrease in the price of the resources used to produce the good
Which of the following correctly describes how price adjustments
eliminate a shortage? As the price _____, the quantity demanded
_____ while the quantity supplied _____.
increases, decreases, increases
You observe that the equilibrium price of a good rises and the
equilibrium quantity decreases. These observations can be the result
of the _____ curve shifts _____.
supply, leftward
You notice that the equilibrium price and quantity of wheat both
decrease. This observation can be the result of the _____ curve for
wheat shift _____.
END OF
PAGE
1
, ECON-B 251 EXAM LATEST
demand, left
If the supply of spring water decreases and at the same time the
demand for spring water increases, the equilibrium price _____ and
the equilibrium quantity _____.
increases, might increase, decrease or stay the same
The price elasticity of demand for furniture is estimated at 1.3. This
value means a one percent increase in the _____ will _____ the
_____ by _____ percent.
price of furniture, decrease, quantity of furniture demanded, 1.3
Suppose a rise in the price of peaches from $5.50 to $6.50 per bushel
decreases the quantity demanded from 12,500 to 11,500 bushels. The
price elasticity of demand is ___.
0.5
Demand is perfectly inelastic when
shifts of the supply curve results in no change in quantity demanded.
Business people often speak about price elasticity without actually
using the term. Which statement describes a good with an elastic
demand?
"My customers are real shoppers. After I cut my prices just a few cents
below those my competitors charge, customers have been flocking to my
store and sales are booming."
END OF
PAGE
2
