1. An increase in demand, given no change in the supply curve, causes:
a. the equilibrium price to rise
b. the equilibrium price to fall
c. a movement rightward along the demand curve
d. a decrease in supply
2. When the price is below the equilibrium price, the quantity demanded:
a. is less than the equilibrium quantity. So is the quantity supplied
b. is less than the equilibrium quantity. The quantity supplied exceeds the equilibrium quantity
c. exceeds the equilibrium quantity. So does the quantity supplied.
d. exceeds the equilibrium quantity. The quantity supplied is less than the equilibrium quantity.
3. When we say demand increases, we mean that there is a:
a. movement to the right along a demand curve
b. movement to the left along a demand curve
c. rightward shift in the demand curve
d. leftward shift in demand curve
4. If both demand and supply curves decrease, the equilibrium quantity
a. increases and price falls.
b. decreases and the effect on price is indeterminate.
c. decreases and the price rises.
d. increases and the effect on price is indeterminate.
5. A supply curve shows the relation between the quantity of a good supplied and
a. income. Usually a supply curve has a negative slope.
b. income. Usually a supply curve has a positive slope.
c. the price of the good. Usually a supply curve has a negative slope.
d. the price of the good. Usually a supply curve has a positive slope.
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a. the equilibrium price to rise
b. the equilibrium price to fall
c. a movement rightward along the demand curve
d. a decrease in supply
2. When the price is below the equilibrium price, the quantity demanded:
a. is less than the equilibrium quantity. So is the quantity supplied
b. is less than the equilibrium quantity. The quantity supplied exceeds the equilibrium quantity
c. exceeds the equilibrium quantity. So does the quantity supplied.
d. exceeds the equilibrium quantity. The quantity supplied is less than the equilibrium quantity.
3. When we say demand increases, we mean that there is a:
a. movement to the right along a demand curve
b. movement to the left along a demand curve
c. rightward shift in the demand curve
d. leftward shift in demand curve
4. If both demand and supply curves decrease, the equilibrium quantity
a. increases and price falls.
b. decreases and the effect on price is indeterminate.
c. decreases and the price rises.
d. increases and the effect on price is indeterminate.
5. A supply curve shows the relation between the quantity of a good supplied and
a. income. Usually a supply curve has a negative slope.
b. income. Usually a supply curve has a positive slope.
c. the price of the good. Usually a supply curve has a negative slope.
d. the price of the good. Usually a supply curve has a positive slope.
Thanks!