Pre-Test Chap 03 e18 - Pre-Test Chap 03 e18 Student 1 A...

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Pre-Test Chap 03 e18 Student: ___________________________________________________________________________ 1. A surplus of a product will arise when price is: A. above equilibrium with the result that quantity demanded exceeds quantity supplied. B. above equilibrium with the result that quantity supplied exceeds quantity demanded. C. below equilibrium with the result that quantity demanded exceeds quantity supplied. D. below equilibrium with the result that quantity supplied exceeds quantity demanded. 2. Assume product A is an input in the production of product B. In turn product B is a complement to product C. We can expect a decrease in the price of A to: A. increase the supply of B and increase the demand for C. B. decrease the supply of B and increase the demand for C. C. decrease the supply of B and decrease the demand for C. D. increase the supply of B and decrease the demand for C. 3. Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will: A. decrease, quantity demanded will decrease, and quantity supplied will increase. B. decrease and quantity demanded and quantity supplied will both decrease. C. increase, quantity demanded will increase, and quantity supplied will decrease. D. increase, quantity demanded will decrease, and quantity supplied will increase. 4. Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity? A. an increase in supply. B. an increase in demand. C. a decrease in supply. D. a decrease in demand. In the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand ( D ) for, or supply ( S ) of, X , (2) the equilibrium price ( P ) of X and (3) the equilibrium quantity ( Q ) of X .
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5. Refer to the above. Consumer expectations that the price of X will rise sharply in the future will: A. increase S , increase P , and increase Q . B. increase
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This note was uploaded on 05/23/2010 for the course ECON 101 taught by Professor Keep during the Spring '10 term at Glendale Community College.

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Pre-Test Chap 03 e18 - Pre-Test Chap 03 e18 Student 1 A...

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