ECON 2102 Exam Questions and Correct Verified
Answers
If a price ceiling is to be effective, it should be set - ✔✔Below the equilibrium price, and it
will create a market shortage.
Assume that pencils and pens are substitutes. If the price of pencils rises, then we will see -
✔✔An increase in the demand for pens.
If corn products are found to cause cancer, then the - ✔✔Demand curve for corn will shift
left.
economics, scarcity means that - ✔✔Society's desires exceed resources available.
The Latin phrase ceteris paribus means - ✔✔Other things remain equal.
The equilibrium price in a market is found where - ✔✔The market supply curve intersects the
market demand curve.
Which of the following is a determinant of market supply? - ✔✔available technology
Suppose a hurricane hits Florida, causing widespread damage to houses and businesses. The
governor of Florida places price ceilings on all building materials to keep the prices reasonable.
Which of the following is the most likely result? - ✔✔Shortages of building materials and a
slower recovery from the storm.
Suppose both the demand for and supply of salsa increase (although not necessarily by the same
amount). What can we conclude about changes in the price and quantity of salsa? - ✔✔The
quantity increases but the change in the price cannot be determined.
Answers
If a price ceiling is to be effective, it should be set - ✔✔Below the equilibrium price, and it
will create a market shortage.
Assume that pencils and pens are substitutes. If the price of pencils rises, then we will see -
✔✔An increase in the demand for pens.
If corn products are found to cause cancer, then the - ✔✔Demand curve for corn will shift
left.
economics, scarcity means that - ✔✔Society's desires exceed resources available.
The Latin phrase ceteris paribus means - ✔✔Other things remain equal.
The equilibrium price in a market is found where - ✔✔The market supply curve intersects the
market demand curve.
Which of the following is a determinant of market supply? - ✔✔available technology
Suppose a hurricane hits Florida, causing widespread damage to houses and businesses. The
governor of Florida places price ceilings on all building materials to keep the prices reasonable.
Which of the following is the most likely result? - ✔✔Shortages of building materials and a
slower recovery from the storm.
Suppose both the demand for and supply of salsa increase (although not necessarily by the same
amount). What can we conclude about changes in the price and quantity of salsa? - ✔✔The
quantity increases but the change in the price cannot be determined.
