One of the biggest benefits of the Internet auction site eBay A) is its control over prices. B) is that it increases the supply of products. C) is that it increases the demand for products. D) is that it reduces transaction costs for both sellers and buyers. ANSWER D
Date: September 9th, 2020
The change in price that results from a rightward shift in demand will be greater if A) the supply curve is horizontal than if the supply curve is upward sloping. B) the supply curve is relatively steep than if the supply curve is relatively flat. C) the supply curve is upward sloping than if the […]
Date: September 9th, 2020
It is appropriate to use the supply-and-demand model in which of the following markets? A) beer market B) car market C) wheat market D) market for breakfast cereal ANSWER C
Date: September 9th, 2020
Understanding the supply and demand model facilitates A) greed. B) charity. C) happiness. D) prediction. ANSWER D
Date: September 9th, 2020
Suppose a market is currently at equilibrium. A leftward shift of the demand curve would cause A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity. ANSWER D […]
Date: September 9th, 2020
When “rent controls” result in a shortage of housing, landlords A) use criteria other than price to allocate housing. B) lower the price to allocate the housing. C) attempt to attract renters. D) None of the above. ANSWER A
Date: September 9th, 2020
When two goods are complements, a shock that lowers the price of one good causes the price of the other good to A) remain unchanged. B) decrease. C) increase. D) change in an unpredictable manner. ANSWER C
Date: September 9th, 2020
A leftward shift of the supply curve will lead to an A) increase in equilibrium price. B) excess supply at the old equilibrium price. C) increase in quantity supplied. D) All of the above. ANSWER A
Date: September 9th, 2020
If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price, A) there will be excess demand. B) there will be excess supply. C) the curves will shift to make a new equilibrium at the regulated price. D) None of the above. ANSWER A
Date: September 9th, 2020
Agricultural price supports are A) floors. B) ceilings. C) quantity quotas. D) taxes. ANSWER A
Date: September 9th, 2020
