MBA 651 Final Exam 2025/2026 Exam
Questions and Answers | A+ Score
Assured
Suppose market demand and supply are given by Q d = 100 - 2P and Q S = 5 + 3P.
The equilibrium quantity is: - 🧠 ANSWER ✔✔62.
Suppose the demand for good X is given by Qdx= 20 - 4Px + 2Py + M. The price
of good X is $5, the price of good Y is $15, and income is $150. Given these prices
and income, how much of good X will be purchased? - 🧠 ANSWER ✔✔180
Jane pays the market price of $69 for a new pair of running shoes, even though she
would be happy to pay a maximum of $100 for the same pair of shoes. This is an
example of the concept of - 🧠 ANSWER ✔✔consumer surplus.
Suppose the demand for X is given by Q xd = 100 - 2PX + 4PY + 10M + 2A,
where PX represents the price of good X, PY is the price of good Y, M is income
and A is the amount of advertising on good X. Based on this information, we know
that good X is - 🧠 ANSWER ✔✔a substitute for good Y and a normal good.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,The demand function - 🧠 ANSWER ✔✔recognizes that the quantity of a good
consumed depends on its price and demand shifters.
Producer surplus is measured as the area - 🧠 ANSWER ✔✔above the supply curve
and below the market price.
As additional firms enter an industry, the market supply curve - 🧠 ANSWER
✔✔shifts to the right.
The supply function for good X is given by Q x s = 1,000 + PX - 5 PY - 2PW ,
where PX is the price of X, PY is the price of good Y and PW is the price of input
W. If PX = 100, PY = 150 PW = 50, then the supply curve is - 🧠 ANSWER ✔✔Q
x s = 150 + Px.
In a competitive market, the market demand is Qd = 70 - 3P and the market supply
is Qs = 6P. A price ceiling of $4 will result in - 🧠 ANSWER ✔✔A shortage of 34
units.
Consumer surplus - 🧠 ANSWER ✔✔is the value consumers get from a good but do
not pay for.
Suppose you produce wooden desks, and government legislation protecting the
spotted owl has made it more expensive for you to purchase wood. What do you
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,expect to happen to the equilibrium price and quantity of wooden desks? - 🧠
ANSWER ✔✔price will increase but quantity will decrease.
Competitive market equilibrium - 🧠 ANSWER ✔✔is determined by the
intersection of the market demand and supply curves.
The supply function for good X is given by Q x s = 1,000 + PX - 5 PY - 2PW ,
where PX is the price of X, PY is the price of good Y and PW is the price of input
W. If the price of input W increases by $10, then the supply of good X - 🧠
ANSWER ✔✔none of the above.
Firms advertise in order to cause the demand for their products to - 🧠 ANSWER
✔✔shift to the right.
An ad valorem tax shifts the supply curve - 🧠 ANSWER ✔✔by rotating it counter-
clockwise.
In a competitive market, the market demand is Qd = 60 - 6P and the market supply
is Qs = 4P. A price ceiling of $3 will result in - 🧠 ANSWER ✔✔A shortage of 30
units.
Suppose the demand for X is given by Q xd = 100 - 2PX + 4PY + 10M + 2A,
where PX represents the price of good X, PY is the price of good Y, M is income
3
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, and A is the amount of advertising on good X. Based on this information, we know
that good Y is - 🧠 ANSWER ✔✔a substitute for good X.
All else held constant, as additional firms enter an industry - 🧠 ANSWER ✔✔more
output is available at each given price.
Technological advances will cause the supply curve to: - 🧠 ANSWER ✔✔shift to
the right.
Advertising provides consumers with information about the underlying existence
or quality of a product. These types of advertising messages are called - 🧠
ANSWER ✔✔informative advertising.
An ad valorem tax causes supply curve to: - 🧠 ANSWER ✔✔become steeper.
Other things held constant, the greater the price of a good - 🧠 ANSWER ✔✔the
lower the consumer surplus.
Persuasive advertising influences demand by: - 🧠 ANSWER ✔✔altering the
underlying tastes of consumers.
Suppose market demand and supply are given by Q d = 100 - 2P and Q S = 5 + 3P.
If the government sets a price floor of $30 and agrees to purchase all surplus at $30
per unit, the total cost to the government will be: - 🧠 ANSWER ✔✔$1,650.
4
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Answers | A+ Score
Assured
Suppose market demand and supply are given by Q d = 100 - 2P and Q S = 5 + 3P.
The equilibrium quantity is: - 🧠 ANSWER ✔✔62.
Suppose the demand for good X is given by Qdx= 20 - 4Px + 2Py + M. The price
of good X is $5, the price of good Y is $15, and income is $150. Given these prices
and income, how much of good X will be purchased? - 🧠 ANSWER ✔✔180
Jane pays the market price of $69 for a new pair of running shoes, even though she
would be happy to pay a maximum of $100 for the same pair of shoes. This is an
example of the concept of - 🧠 ANSWER ✔✔consumer surplus.
Suppose the demand for X is given by Q xd = 100 - 2PX + 4PY + 10M + 2A,
where PX represents the price of good X, PY is the price of good Y, M is income
and A is the amount of advertising on good X. Based on this information, we know
that good X is - 🧠 ANSWER ✔✔a substitute for good Y and a normal good.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,The demand function - 🧠 ANSWER ✔✔recognizes that the quantity of a good
consumed depends on its price and demand shifters.
Producer surplus is measured as the area - 🧠 ANSWER ✔✔above the supply curve
and below the market price.
As additional firms enter an industry, the market supply curve - 🧠 ANSWER
✔✔shifts to the right.
The supply function for good X is given by Q x s = 1,000 + PX - 5 PY - 2PW ,
where PX is the price of X, PY is the price of good Y and PW is the price of input
W. If PX = 100, PY = 150 PW = 50, then the supply curve is - 🧠 ANSWER ✔✔Q
x s = 150 + Px.
In a competitive market, the market demand is Qd = 70 - 3P and the market supply
is Qs = 6P. A price ceiling of $4 will result in - 🧠 ANSWER ✔✔A shortage of 34
units.
Consumer surplus - 🧠 ANSWER ✔✔is the value consumers get from a good but do
not pay for.
Suppose you produce wooden desks, and government legislation protecting the
spotted owl has made it more expensive for you to purchase wood. What do you
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,expect to happen to the equilibrium price and quantity of wooden desks? - 🧠
ANSWER ✔✔price will increase but quantity will decrease.
Competitive market equilibrium - 🧠 ANSWER ✔✔is determined by the
intersection of the market demand and supply curves.
The supply function for good X is given by Q x s = 1,000 + PX - 5 PY - 2PW ,
where PX is the price of X, PY is the price of good Y and PW is the price of input
W. If the price of input W increases by $10, then the supply of good X - 🧠
ANSWER ✔✔none of the above.
Firms advertise in order to cause the demand for their products to - 🧠 ANSWER
✔✔shift to the right.
An ad valorem tax shifts the supply curve - 🧠 ANSWER ✔✔by rotating it counter-
clockwise.
In a competitive market, the market demand is Qd = 60 - 6P and the market supply
is Qs = 4P. A price ceiling of $3 will result in - 🧠 ANSWER ✔✔A shortage of 30
units.
Suppose the demand for X is given by Q xd = 100 - 2PX + 4PY + 10M + 2A,
where PX represents the price of good X, PY is the price of good Y, M is income
3
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, and A is the amount of advertising on good X. Based on this information, we know
that good Y is - 🧠 ANSWER ✔✔a substitute for good X.
All else held constant, as additional firms enter an industry - 🧠 ANSWER ✔✔more
output is available at each given price.
Technological advances will cause the supply curve to: - 🧠 ANSWER ✔✔shift to
the right.
Advertising provides consumers with information about the underlying existence
or quality of a product. These types of advertising messages are called - 🧠
ANSWER ✔✔informative advertising.
An ad valorem tax causes supply curve to: - 🧠 ANSWER ✔✔become steeper.
Other things held constant, the greater the price of a good - 🧠 ANSWER ✔✔the
lower the consumer surplus.
Persuasive advertising influences demand by: - 🧠 ANSWER ✔✔altering the
underlying tastes of consumers.
Suppose market demand and supply are given by Q d = 100 - 2P and Q S = 5 + 3P.
If the government sets a price floor of $30 and agrees to purchase all surplus at $30
per unit, the total cost to the government will be: - 🧠 ANSWER ✔✔$1,650.
4
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
