(1)Which would not cause the supply curve to shift?
a) a change in technology
b) a change in factor costs
c) a change in the price of the good
d) a change in the prices of related goods
(2)The intersection of the supply and demand curves indicates:
a) the market is in equilibrium
b) a surplus that will cause the price to fall
c) a shortage that will cause the price to rise
d) the quantity demanded exceeds the quantity supplied
(3)There is equilibrium in the market when:
a) there is no shortage
b) there is no surplus
c) price is established where the supply curve and the demand curveintersect
d) all of the above are true
(4)If the price in the market for a commodity is above the marketequilibrium price, the:
a) price will remain unchanged
b) price will rise to clear the market
c) quantity supplied exceeds the quantity demanded
d) quantity demanded exceeds the quantity supplied
(5)In a competitive market, when price is below the equilibriumprice, there will be pressure for the price to:
a) fall
b) stay the same
c) rise
d) change only if demand and/or supply change
(6)A market shortage occurs if the quantity:
a) demanded is greater than the quantity supplied
b) demanded is less than the quantity supplied
c) demanded is equal to the quantity supplied
d) supplied is greater than the quantity demanded
(7)An increase in demand, with no change in supply, will leadto_____ in equilibrium quantity and_____ in equilibrium price.
a) an increase; an increase
b) an increase; a decrease
c) a decrease; an increase
d) a decrease; a decrease
(8)An increase in supply, with no change in demand, will leadto_____ in equilibrium quantity and____ in equilibrium price.
a) an increase; an increase
b) an increase; a decrease
c) a decrease; an increase
d) a decrease; a decrease
(9)A decrease in demand, with no change in supply, will lead to____in equilibrium quantity and____ in equilibrium price.
a) an increase; an increase
b) an increase; a decrease
c) a decrease; an increase
d) a decrease; a decrease
(10)A decrease in supply, with no change in demand, will lead to___in equilibrium quantity and____ in equilibrium price.
a) an increase; an increase
b) an increase; a decrease
c) a decrease; an increase
d) a decrease; a decrease
(11)Given that milk and cookies are complements, suppose the priceof flour (an ingredient in cookies) rises. What happens in themarket for milk?
a) the equilibrium price and quantity rise
b) the equilibrium price rises and the equilibrium quantityfalls
c) the equilibrium price and quantity fall
d) the equilibrium price falls and the equilibrium quantityrises