Micro3Q

Micro3Q - Micro Chapter 3 Study Guide Questions Multiple...

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Micro Chapter 3 Study Guide Questions Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. If the price of tickets to the World Series were set below the equilibrium price, a. the quantity demanded would be smaller than the quantity supplied. b. the demand for World Series tickets would be highly responsive to the price. c. there would be no transactions between buyers and sellers of the tickets. d. the number of persons seeking to obtain tickets to World Series games would be greater than the number of tickets available. ____ 2. Which of the following would cause the price of automobiles to rise? a. a decrease in the wages of autoworkers b. a reduction in the price of bus travel c. an increase in the price of gasoline d. an increase in consumer income ____ 3. Which of the following would be the best example of consumer surplus? a. Jane pays $30 a month for phone service even though it is worth $70 to her. b. Sam refuses to pay $10 for a haircut because it is only worth $8 to him. c. Fred buys a car for $4,000, the maximum amount that he would be willing to pay for it. d. When Sue purchases a candy bar for $.50, she uses a $20 bill to pay for it. ____ 4. If cigars and cigarettes are substitute goods, an increase in the price of cigars would result in a. an increase in the demand for cigarettes. b. a decrease in the price of cigarettes. c. a decrease in the demand for cigarettes. d. a decrease in the demand for cigars. ____ 5. Which of the following would most likely cause the current demand for video cassette recorders VCRs to fall? a. an increase in consumer income b. an increase in the price of VCRs c. an increase in the price of laser disc players, a substitute good d. the expectation that the price of VCRs will decrease sharply during the next six months ____ 6. Which of the following would be most likely to cause the demand for Miller beer to increase? a. an increase in the price of Budweiser beer
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This note was uploaded on 04/13/2008 for the course ECO 2013 taught by Professor Evans during the Spring '08 term at FSU.

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Micro3Q - Micro Chapter 3 Study Guide Questions Multiple...

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