2024 – 1 on the demand side of a market consumer indicate what they are willing to buy quantity and at what price

 1.on the demand side of a market, consumer indicate what they are willing to buy, quantity and at what price TRUE OR FALSE
 

2. Suppose the quantity supplied of cars exceeds the quantity of car demanded. We would expect that
a. the price of car will increase
b. the price of car will decrease
c. the demand will decrease (demand will shift to the left) to meet the supply
d. the supply will increase (supply will shift to the right)to meet the demand
 

3.suppose that consumer expects the price of a product to decrease in the future. The result is that
 

a. the current supply of the product decrease
b. the current supply of product increase
c. the current demand for product increase
d. the current demand for the product decrease
 

4.suppose that the percentage change in demand is 10%, the price elasticity of supply is 2, as the percentage change in the equilibrium price is 3.33%. What is the price elasticity demand.
 

a. 3 b.1 c. 0 d. 2
 

5 given the percentage change in supply as the price elasticity of supply, percentage change in equilibrium price is zero if demand curve is perfect inelastic.
 

True or false
 

6.suppose that the elastic of demand for a product is 0.5 and the quantity demanded increase by 20%. What must the percentage decrease in price have been?
 

a. 5% b.0.5% c. 40% d.10%
 

7.if the demand for new car is elastic, an increase in price will result in
 

a. an increase in the quantity demanded
b. a decrease in total revenue
c. An increase in profit
d. an increase in total revenue
 

8. if the quantity demanded of peanut butter fall by 12% when income rise by 10% the peanut butter is
a. normal good
b. income-elastic demand
c. an inferior good
d. both A and B
 

9. If the percentage change in price is 2 and the percentage change in quantity supplied is 10, supply is
a. elastic
b. unaffected by price change
c. unitary elastic
d. inelastic
 

10. Olive are used to produce olive oil. If the price of olive increase
 

a. the demand for olive oil increase
b. the demand for olive oil decrease
c. the supply of olive oil increase
d. the supply of olive oil decrease.
 

11. When supply increases and the supply curve shift to the right, equilibrum pice and quantity will both increase.
 

True or False
 

12. Suppose that in a month the price of a dozen of eggs increases from $1.50 to $2. At the same time, the quantity of dozen of egg demanded decrease from 200 to 150. The price elasticity of demand of dozen of egg is
 

a. inelastic
b. perfect inelastic
c. elastic
d. unitary elastic
 

13. Suppose that in a month the price of a cup of coffee increase from $1 to $1.50. At the same time, the quantity of cups of coffee demand decrease from 200 to 190. The price elasticity of demand for cup of coffee (calculated using the midpoint formula) is
 

a. inelastic
b. unitary elastic
c. zero
d. elastic
 

14.in the figure 5.3, the most inelastic supply curve is
a. supply 3
b. supply 1
c. supply 2
d. cant be determine
 

15. In the figure 5.2 at the quantities smaller than Q1
a. price elasticity is greater than 1
b. total revenue is falling
c. price and total revenue are directed related
d. all of the above.
 

16. In the figure 4.5 illustrate a set of supply and demand curve for hamburger. An increase in supply and an increase in quantity demanded are represented by a movement from
 

a. point C to point B
b. point D to point B
c. point A to point C
d. point C to point D
 

17. In the figure 4.3 illustrate the demand for tacos. An increase in price of tacos world bring about a movement from
 

a. D1 to D2
b. point B to point C
c. D1 to D0
d. point B to A
 

18. Figure 4.2 illustrate the supply and demand for T-shirts. If the actual price of T-shirt is $7, there is
 

a. excess supply of 10 T-shirt
b. excess demand of 8 T-shirt
c. excess supply of 8 T-shirt
d. excess demand of 10 T-shirt
 

19. Refer to table 4.1 which shows the flo’s and Rita’s individual supply schedules for frozen latte – on – a – stick. Assuming Flo’s and Rita are the only supplies in the market, quantity supplied at a price of $2 ?
 

a. 0
b. 2
c. 3
d. 5
 

20. Recall the application about the price of vanilla beans to answer the following question. In 2000, a cyclone destroyed the vanilla beans crop in Madagascar, the world’s leading vanilla producer, and the replacement vines took 3 to 5 years to produce the usable beans. By 2006 the replanted vine in Madagascar started to produce vanilla beans, but by that time several other countries had also entered the vanilla market. The price of vanilla beans went from $50 per kilo to $500 per kilo from 2000 to 2003, and from $500 per kilo to $25 per kilo from 2003 to 2006.
 

According to this application, from 2003 to 2006, the price of vanilla beans increased because ………….. Curve shifted ……………………
 

a. supply, down and to the right
b. supply down and to the left
c. supply up and to the left
d. demand up and to the right
 21. Most of our regulations attempt to control the quantity of pollution. Why is a tax on pollution preferrable to direct controls on the quantity of pollution?  

  

22. In Figure 5.1 represents one view of the economic effects of making marijuana legal.
 

Consider three issues. First, does this diagram adequately represent the likely supply and
 

demand effects? Second, why is marijuana different from alcohol? Third, what social
 

costs are not considered in this analysis?

does this diagram adequately represent the likely supply and demand effects?