MBA 701 - Module 1 Questions and
Answers 2026
Assume coffee and doughnuts are complements. When the price of doughnuts goes up,
which of the following will happen to the market for coffee? - answer The equilibrium
quantity of coffee will decrease.
Given a supply curve for a normal good; while moving along the supply curve, which of
the following is NOT held constant? - answer the price of the good itself
By drawing a demand curve with ________ on the vertical axis and ________ on the
horizontal axis, economists assume that the most important determinant of the demand
for a good is the ________ of the good. - answerprice; quantity; price
Using figure above: at price = $15 - answerthere would be a surplus of 4 units
Holding everything else constant, an increase in the price of X-box players will result in -
answera decrease in the quantity of X-box players demanded.
On any given supply curve, each point represents: - answerthe lowest price for which a
supplier can profitably sell another unit.
Movie tickets is a normal good, in the market for movie tickets, a decrease in income
will cause the - answerdemand curve for movie tickets to shift left
Paul goes to Dick's Sporting Goods to buy a new tennis racquet. He is willing to pay
$200 for a new racquet, but buys one on sale for $125. Paul's consumer surplus from
the purchase is - answer$75
An increase in quantity demanded caused by a decrease in price is represented by a -
answermovement down and to the right along the demand curve.
What is the difference between an "increase in demand" and an "increase in quantity
demanded"? - answerAn "increase in demand" is represented by a rightward shift of the
demand curve while an "increase in quantity demanded" is represented by a movement
along a given demand curve.
Answers 2026
Assume coffee and doughnuts are complements. When the price of doughnuts goes up,
which of the following will happen to the market for coffee? - answer The equilibrium
quantity of coffee will decrease.
Given a supply curve for a normal good; while moving along the supply curve, which of
the following is NOT held constant? - answer the price of the good itself
By drawing a demand curve with ________ on the vertical axis and ________ on the
horizontal axis, economists assume that the most important determinant of the demand
for a good is the ________ of the good. - answerprice; quantity; price
Using figure above: at price = $15 - answerthere would be a surplus of 4 units
Holding everything else constant, an increase in the price of X-box players will result in -
answera decrease in the quantity of X-box players demanded.
On any given supply curve, each point represents: - answerthe lowest price for which a
supplier can profitably sell another unit.
Movie tickets is a normal good, in the market for movie tickets, a decrease in income
will cause the - answerdemand curve for movie tickets to shift left
Paul goes to Dick's Sporting Goods to buy a new tennis racquet. He is willing to pay
$200 for a new racquet, but buys one on sale for $125. Paul's consumer surplus from
the purchase is - answer$75
An increase in quantity demanded caused by a decrease in price is represented by a -
answermovement down and to the right along the demand curve.
What is the difference between an "increase in demand" and an "increase in quantity
demanded"? - answerAn "increase in demand" is represented by a rightward shift of the
demand curve while an "increase in quantity demanded" is represented by a movement
along a given demand curve.
