Penn ECON102 Quiz 3

Question 1

The law of demand is a statement that relates which two variables?

price and preferences

price and quantity supplied

price and household income

price and quantity demanded

Question 2

Which of the following are the best examples of complements?

mayonnaise and mustard

peanut butter and jelly

roast turkey and smoked ham

white bread and wheat bread

Question 3

An increase in demand is demonstrated by

a rightward shift of the demand curve.

a rightward movement along the demand curve.

a leftward movement along the demand curve.

a leftward shift of the demand curve.

Question 4

The law of supply is a statement that relates which two variables?

price and profit

price and production cost

price and quantity demanded

price and quantity supplied

Question 5

Each of the following would cause a decrease in the supply of corn EXCEPT

an increase in the wage rate for agricultural workers.

a season of unfavorable weather.

an increase in the price of soybeans.

an advancement in technology used to produce corn.

Question 6

An decrease in quantity supplied is caused by

an increase in the price of the product.

an increase in the price of an input.

a decrease in the price of an input.

a decrease in the price of the product.

Question 7

In the above figure, a surplus will occur in the market at a price of

None of these.

P2.

P0.

P1.

Question 8

When supply decreases, we expect equilibrium price to ________ and equilibrium quantity to _______.

increase; decrease

increase; increase

decrease; increase

decrease; decrease

Question 9

Which of the figures above would be an appropriate representation of the effects of an increase in the price of gasoline on the trucking industry.

Figure 4

Figure 3

Figure 2

Figure 1

Question 10

In the above figure, a price ceiling of $1.50 would result in

the equilibrium market outcome.

a remainder of 75.

a surplus of 75.

a shortage of 75.