Microeconomics 213 QUIZ 3
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Question 1
2 out of 2 points
Assume that the market for baseballs is in equilibrium. There is a sudden decrease in income
throughout the economy. If all else is held constant, we would expect that:
Selected
Answer: if baseballs are a normal good, then the demand curve will shift to the left,
causing the equilibrium price and quantity to fall.
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Question 2
2 out of 2 points
Some studies have shown that eating chocolate before a test can increase brain activity,
thereby causing students to score higher on exams. When these findings were announced, the
price and quantity sold of chocolate increased in college towns. One reason for this could
have been that the:
Selected Answer: consumers increased their demand for chocolate.
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Question 3
2 out of 2 points
According to the accompanying figure, if the price is $10, there is a:
Selected Answer: surplus of 15 units.
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Question 4
Microeconomics 213 QUIZ 3
2 out of 2 points
What would happen to the equilibrium price and quantity of shirts if the price of cotton
decreases and all else is held constant?
Selected Answer: The price falls and the quantity rises.
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Question 5
0 out of 2 points
Refer to the table below. The equilibrium price and quantity in this market is:
Selected Answer: $2.00 and 50 units.
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Question 6
2 out of 2 points
When the demand curve shifts to the right and the supply curve is held constant,
Selected Answer: the equilibrium price and quantity increase.
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Question 7
2 out of 2 points
Which of the following scenarios would explain the change in equilibrium shown in the
accompanying figure?
Microeconomics 213 QUIZ 3
Selected Answer: a decrease in the number of buyers in a market
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Question 8
2 out of 2 points
An improvement in technology:
Selected Answer: allows a producer to increase output with the same amount of input.
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Question 9
2 out of 2 points
The price of good X increases by 25%, causing the quantity consumed of good Y to decrease
by 10%. If everything else is held constant in the economy, we can say with certainty that
good X and good Y are:
Selected Answer: complements.
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Question 10
2 out of 2 points
Taxes cause the equilibrium price of a good to:
Selected Answer: increase.
Microeconomics 213 QUIZ 3
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Question 11
2 out of 2 points
Which of the following would cause a normal good’s demand curve to shift to the left?
Selected Answer: Income decreases.
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Question 12
2 out of 2 points
Refer to the accompanying figure. What event would cause the supply curve to shift out?
Selected Answer: Firms entered the market.
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Question 13
0 out of 2 points
When supply shifts right and demand shifts left, the:
Selected Answer: equilibrium price is indeterminate.
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Question 14
2 out of 2 points
The law of supply states that, all other things being equal,
Microeconomics 213 QUIZ 3
Selected
Answer: the quantity supplied falls when the price falls, and the quantity supplied
rises when the price rises.
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Question 15
2 out of 2 points
If the cost of flour increases from $3 to $5 a bag, you could predict the supply curve for
bagels to:
Selected Answer: shift to the left.
