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Quiz Chapter 4

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129 views

Quiz Chapter 4

Uploaded by

Jason Lee
Copyright
© © All Rights Reserved
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March 21, 2024 chapter 4

In class work
1. A decrease in the price of a good will
a. increase demand.
b. decrease demand.
c. decrease quantity demanded.
d. increase quantity demanded.

2. A decrease in supply shifts the supply curve to the left.


a. True
b. False

3. Pizza is a normal good if the demand


a. for pizza rises when income rises.
b. for pizza rises when the price of pizza falls.
c. curve for pizza slopes upward.
d. curve for pizza shifts to the right when the price of burritos rises, assuming pizza
and burritos are substitutes.

3. An improvement in production technology will shift the


a. supply curve to the right.
b. supply curve to the left.
c. demand curve to the right.
d. demand curve to the left.

4 . Equilibrium price must increase when


a. both demand and supply increase.
b. both demand and supply decrease.
c. demand increases and supply does not change.
d. demand does not change and supply increases.

5. Suppose that demand for a good increases and, at the same time, supply of the good
decreases. What would happen in the market for the good?

a. Equilibrium price would decrease, but the impact on equilibrium quantity would be
ambiguous.
b. Equilibrium price would increase, but the impact on equilibrium quantity would be
ambiguous.
c. Equilibrium quantity would decrease, but the impact on equilibrium price would be
ambiguous.
d. Equilibrium quantity would increase, but the impact on equilibrium price would be
ambiguous.

6. The market for pizza has the following demand and supply schedules:
Price Quantity Demanded Quantity Supplied
$4 135 26 pizza
5 104 53
6 81 81
7 68 98
8 53 110
9 39 121

a. Graph the demand and supply curves. What are the equilibrium price and quantity in this
market?

b. If the actual price in this market were above the equilibrium price, what would drive the
market toward the equilibrium?

c. If the actual price in this market were below the equilibrium price, what would drive the
market toward the equilibrium?

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