Question 1 (1 point) ...................... As the price decreases, the behaviou
ID: 2506351 • Letter: Q
Question
Question 1 (1 point)
......................
As the price decreases, the behaviour of the data in Column 2 is most consistent with
Question 1 options:
a supply curve.
excess demand.
excess supply.
a demand curve.
an equilibrium.
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Question 2 (1 point)
A consumer purchases quantities of good A and good B in accordance with the rational spending rule. An increase in the price of good A causes the consumer to
Question 2 options:
buy more A to restore the rational spending rule.
buy less B to restore the rational spending rule.
do nothing; he is unaffected by the price change.
buy less A to restore the rational spending rule.
buy more of both A and B to restore the rational spending rule.
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Question 3 (1 point)
Total expenditure is
Question 3 options:
greater than total revenue.
equal to the profit firms earn.
less than total revenue.
unrelated to the revenue firms collect.
equal to total revenue.
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Question 4 (1 point)
A price elasticity of demand of 0.3 means a
Question 4 options:
10% increase in the price results in a 3% increase in quantity demanded.
3% increase in the price results in a 3% decrease in quantity demanded.
10% increase in the price results in a 3% decrease in demand.
10% increase in the price results in a 3% decrease in quantity demanded.
10% increase in the price results in a 3% increase in demand.
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Question 5 (1 point)
The income elasticity of demand for chicken noodle soup is found to be -0.7. This means chicken noodle soup
Question 5 options:
is a normal good.
has inelastic demand.
is a superior good.
has elastic demand.
is an inferior good.
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Question 6 (1 point)
Which of the following is a non-monetary cost of seeing your favourite band in concert?
Question 6 options:
The new outfit you bought just for the concert.
Transportation to the arena.
The three hours you waited in line to get tickets.
The price paid for the concert tickets.
Refreshments you purchase in between the opening act and the headliner.
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Question 7 (1 point)
................
If column 1 represents the demand curve for a product and column 2 represents the supply curve, then at a price of $7.50, the market experiences ________________.
Question 7 options:
a shortage.
excess supply.
a surplus.
excess demand.
an equilibrium.
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Question 8 (1 point)
Suppose that both the equilibrium price and the equilibrium quantity of mustard rise. The most consistent explanation for these observations is
Question 8 options:
a decrease in the demand for mustard with no change in supply.
a decrease in the supply of mustard with no change in demand.
a decrease in the demand for mustard and a decrease in the supply of mustard.
an increase in the demand for mustard with no change in supply.
an increase in the supply of mustard with no change in demand.
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Question 9 (1 point)
The market equilibrium process depends on the competition among
Question 9 options:
a few sellers and many buyers.
many small buyers and many small sellers.
a few buyers and many sellers.
a few big buyers and a few big sellers.
many buyers and a single seller.
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Question 10 (1 point)
..............
Refer to the diagram above. If A represents the initial budget constraint and B the final budget constraint, the change from A to B is most likely to have been caused by a(n)
Question 10 options:
increase in the price of apples.
decrease in the price of apples.
increase in the price of bananas.
decrease in the price of bananas.
increase in the consumer's income.
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Question 11 (1 point)
The price elasticity of demand measures the responsiveness of quantity demanded to a(n)
Question 11 options:
price change.
income change.
price change of a related good.
expectations change.
taste change.
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Question 12 (1 point)
............,..,,,,,..
Refer to the table above. Total expenditure on coffee when the price is $4 per kilogram is
Question 12 options:
$77.
$84.
$95.
$104.
$105.
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Question 13 (1 point)
As more houses are needed in Calgary due to the oil boom, the demand curve for an average house in Calgary is expected to
Question 13 options:
shift to the right.
shift to the left.
move down along the old existing demand curve.
move up along the old existing demand curve.
move in the opposite direction as the supply curve.
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Question 14 (1 point)
A market in equilibrium would feature
Question 14 options:
excess supply.
unexploited opportunities.
excess demand.
wild variation in price.
no tendency to change.
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Question 15 (1 point)
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Refer to the table above. If the price of Good B is $2 and the consumer purchases 4 units, then the extra utility from spending an extra dollar on Good B is
Question 15 options:
14.
4.
7.
21.
6.
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As the price decreases, the behaviour of the data in Column 2 is most consistent with Question 1 options: a supply curve. excess demand. excess supply. a demand curve.Explanation / Answer
1. a demand curve.
as rate increases demand will decreases
2. buy more A to restore the rational spending rule.