981udK0rOkg9YStudy Questions

# 981udK0rOkg9YStudy Questions - Study Questions 1 People buy...

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Study Questions 1) People buy more of good 1 when the price of good 2 rises. These goods are A) complements. B) substitutes. C) normal goods. D) inferior goods. Answer: B 2) Which of the following shifts the supply curve for gasoline rightward? A) A situation where the quantity demanded exceeds the quantity supplied. B) An increase in the price of gasoline. C) A decrease in the price of a resource used to produce gasoline, such as crude oil. D) An increase in the demand for gas-guzzling, sport utility vehicles. Answer: C 3) In the above figure, if the demand curve is D 2 , then A) the equilibrium price will be P 1 and the equilibrium quantity will be Q 2 . B) the equilibrium price will be P 1 and the equilibrium quantity will be Q 1 . C) there will be a shortage equal to Q 2 Q 1 . D) an increase in price will cause the demand curve to shift to D 3 . Answer: A

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4) When the price is below the equilibrium price, the quantity demanded A) is less than the equilibrium quantity. So is the quantity supplied. B) is less than the equilibrium quantity. The quantity supplied exceeds the equilibrium quantity. C)
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## This note was uploaded on 07/12/2009 for the course ECN 1211 taught by Professor Maloney during the Spring '09 term at Fairleigh Dickinson.

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981udK0rOkg9YStudy Questions - Study Questions 1 People buy...

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