Question 1 (1 point) If a market is in equilibrium and then demand increases whi
ID: 2506342 • Letter: Q
Question
Question 1 (1 point)
If a market is in equilibrium and then demand increases while supply decreases, the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.
Question 1 options:
positive; positive
positive; negative
positive; indeterminate
indeterminate; positive
negative; negative
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Question 2 (1 point)
.......
Refer to the table above. When the price of Good B decreases from $2 to $1, the extra utility from spending an extra dollar on Good B associated with 1 unit of consumption
Question 2 options:
falls from 33 to 16.5.
rises from 20 to 40.
rises from 33 to 40.
falls from 20 to 13.3.
remains constant.
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Question 3 (1 point)
The price elasticity of demand is the
Question 3 options:
change in price divided by the change in quantity demanded.
percentage change in quantity demanded divided by the percentage change in price.
change in quantity demanded divided by the change in price.
percentage change in price divided by the percentage change in quantity demanded.
percentage change in quantity demanded divided by the change in price.
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Question 4 (1 point)
An increase in the quantity of tea demanded occurs whenever
Question 4 options:
the population of tea drinkers grows.
the price of coffee rises.
tea drinkers receive an increase in their incomes.
the price of lemons falls.
the price of tea falls.
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Question 5 (1 point)
The rational spending rule is derived from the consumer's efforts to
Question 5 options:
maximize expenditure.
maximize utility.
minimize expenditure.
obtain the lowest possible price.
maximize the number of units purchased.
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Question 6 (1 point)
....,,......,,,
An increase in supply is represented by shifting from
Question 6 options:
curve A to curve B.
curve B to curve A.
curve C to curve D.
curve D to curve C.
curve C to curve B.
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Question 7 (1 point)
Assume that Sandra has $30 in income, and that the price of a loaf of bread is $1.50 and the price of a jar of peanut butter is $3. If Sandra's income increases to $45, she can buy a maximum of _____ loaves of bread or a maximum of _____ jars of peanut butter.
Question 7 options:
5; 25
10; 40
15; 30
20; 20
30; 15
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Question 8 (1 point)
The total utility values for the first five hamburgers consumed are 4, 10, 15, 18, and 19, respectively. The marginal utility of the third hamburger is
Question 8 options:
15.
10.
5.
3.
-3.
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Question 9 (1 point)
Suppose that the equilibrium price of a good is $7.50 and the equilibrium quantity is 20 units. Thus,
Question 9 options:
total revenue is $150 and total expenditure is less than $150.
total revenue and total expenditure are equal at $150.
total expenditure is $150 and total revenue is less than $150.
total revenue is $150 but total expenditure cannot be calculated.
total expenditure is $150 but total revenue cannot be calculated.
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Question 10 (1 point)
The supply curve for any good is an upward-sloping function of
Question 10 options:
buyers' incomes.
sellers' profit margins.
its own price.
its price and its cost of production.
its price as well as buyers' incomes and tastes.
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Question 11 (1 point)
Which of the following is NOT a characteristic of a market in equilibrium?
Question 11 options:
Quantity demanded equals quantity supplied.
Excess supply is zero.
All consumers are able to purchase as much as they wish.
Excess demand is zero.
The equilibrium price is stable, i.e., there is no pressure for it to change.
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Question 12 (1 point)
Goods and services are valuable to consumers
Question 12 options:
because consumers need them.
only if they were purchased on sale.
if they are very expensive.
only if they are brand-name items.
because they produce utility for the consumer.
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Question 13 (1 point)
Suppose that a recent, widely-circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make exercise bicycles falls. What is the likely effect on the supply of and demand for exercise bicycles sold?
Question 13 options:
Supply shifts to the right and demand shifts to the right.
Supply shifts to the right and quantity demanded falls.
Quantity supplied falls and demand shifts to the left.
Quantity supplied rises and demand shifts to the left.
Both supply and demand are unaffected.
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Question 14 (1 point)
If P is the price of a good and Q is the quantity demanded of the good at that price, then the correct mathematical statement of the price elasticity of demand is
Question 14 options:
(P/P)/(Q/Q).
(Q/Q)/(P/P).
P/Q.
Q/P.
(P/P)/Q.
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Question 15 (1 point)
.................
Refer to the indifference curve in the diagram above, with budget constraint, B. If apples cost $3 per kilogram and bananas cost $2 per kilogram, the marginal rate of substitution at point A is equal to
Question 15 options:
3 divided by 2.
2 divided by 3.
the sum of 2 and 3.
2 multiplied by 3.
the difference between 2 and 3.
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If a market is in equilibrium and then demand increases while supply decreases, the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.Explanation / Answer
1. positive; indeterminate
2. rises from 33 to 40.
3. percentage change in quantity demanded divided by the percentage change in price.
4. the price of tea falls.
5. minimize expenditure.
6. curve C to curve D.
7. 20; 20
8. 3
9. total expenditure is $150 and total revenue is less than $150.
10. its own price.
11. Excess supply is zero.
12. only if they were purchased on sale.
13. Supply shifts to the right and demand shifts to the right.
14. P/Q
15. 2 multiplied by 3.