BE 301 Exam 2 Questions with Correct Answers Latest Update 2025/2026
Suppose the demand for pens increases and the supply for pens decreases. What effect will it have on
the quantity?
a. It will rise
b. It will fall
c. uncertain
d. None - Answers c. uncertain
A recent research signified the large health benefits of eating cooked tomatoes. Holding other things
constant, this will cause
a. The demand curve for tomatoes to shift to the right
b. The demand curve for tomatoes to shift to the left
c. The supply curve for tomatoes to shift to the right
d. The supply curve for tomatoes to shift to the left - Answers a. The demand curve for tomatoes to shift
to the right
How does an increase in income affect the market of ipads (normal good)?
a. The demand curve for ipads to shift to the right
b. The demand curve for ipads to shift to the left
c. The supply curve for ipads to shift to the right
d. The supply curve for ipads to shift to the left - Answers a. The demand curve for ipads to shift to the
right
The price of peanuts (an input in the production of peanut butter) increases. At the same time, we see
the price for Jelly (a complement in the consumption of peanut butter) rise. How does this affect the
market for peanut butter?
a. The demand curve will shift to the left; the supply curve will shift to the left
b. The demand curve will shift to the left; the supply curve will shift to the right
c. The demand curve will shift to the right; the supply curve will shift to the left
d. The demand curve will shift to the right; the supply curve will shift to the right - Answers a. The
demand curve will shift to the left; the supply curve will shift to the left
, Based on the answer to question 4, the price for peanut butter_____________ and the quantity
demanded for peanut butter ____________.
a. Uncertain; decreases
b. Decreases; increases
c. Decreases; uncertain
d. Increases; uncertain - Answers a. Uncertain; decreases
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values
{$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market,
what is the equilibrium price in this market?
a. 7
b. 8
c. 9
d. 10 - Answers c. 9
If the government imposes a price floor at $10 (i.e. the price must be $10 or higher) in the market in
question 6, how many goods will be traded?
a. Four
b. Five
c. Six
d. Seven - Answers b. Five
Changes in the price of a good cause [Mark all that apply]:
a. Movement along the demand curve
b. Movement along the supply curve
c. A shift of the demand curve
d. A shift of the supply curve - Answers a. Movement along the demand curve
b. Movement along the supply curve
9. Which of the following will cause shifts in the demand curve [Mark all that apply]:
a. The price of related goods
Suppose the demand for pens increases and the supply for pens decreases. What effect will it have on
the quantity?
a. It will rise
b. It will fall
c. uncertain
d. None - Answers c. uncertain
A recent research signified the large health benefits of eating cooked tomatoes. Holding other things
constant, this will cause
a. The demand curve for tomatoes to shift to the right
b. The demand curve for tomatoes to shift to the left
c. The supply curve for tomatoes to shift to the right
d. The supply curve for tomatoes to shift to the left - Answers a. The demand curve for tomatoes to shift
to the right
How does an increase in income affect the market of ipads (normal good)?
a. The demand curve for ipads to shift to the right
b. The demand curve for ipads to shift to the left
c. The supply curve for ipads to shift to the right
d. The supply curve for ipads to shift to the left - Answers a. The demand curve for ipads to shift to the
right
The price of peanuts (an input in the production of peanut butter) increases. At the same time, we see
the price for Jelly (a complement in the consumption of peanut butter) rise. How does this affect the
market for peanut butter?
a. The demand curve will shift to the left; the supply curve will shift to the left
b. The demand curve will shift to the left; the supply curve will shift to the right
c. The demand curve will shift to the right; the supply curve will shift to the left
d. The demand curve will shift to the right; the supply curve will shift to the right - Answers a. The
demand curve will shift to the left; the supply curve will shift to the left
, Based on the answer to question 4, the price for peanut butter_____________ and the quantity
demanded for peanut butter ____________.
a. Uncertain; decreases
b. Decreases; increases
c. Decreases; uncertain
d. Increases; uncertain - Answers a. Uncertain; decreases
Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values
{$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market,
what is the equilibrium price in this market?
a. 7
b. 8
c. 9
d. 10 - Answers c. 9
If the government imposes a price floor at $10 (i.e. the price must be $10 or higher) in the market in
question 6, how many goods will be traded?
a. Four
b. Five
c. Six
d. Seven - Answers b. Five
Changes in the price of a good cause [Mark all that apply]:
a. Movement along the demand curve
b. Movement along the supply curve
c. A shift of the demand curve
d. A shift of the supply curve - Answers a. Movement along the demand curve
b. Movement along the supply curve
9. Which of the following will cause shifts in the demand curve [Mark all that apply]:
a. The price of related goods
