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Unformatted text preview: Georgia State University Principles Macroeconomics, ECON 2105 Quiz # 4 Key Name: ID # Five multiple choice questions: select the best answer (two points each). 1. Ceteris paribus , if the market price of sirloin steak increases from $3.50 to $5.50 per pound, a. the demand for sirloin steak will decreases. b. supply of sirloin steak increases. c. quantity demanded of sirloin steak increases. d. sirloin steak will go out of the market. ♠ quantity supplied of sirloin steak increases . Sirloin’s price does affect neither the demand for nor supply of sirloin, this roles out (a.) and (b.). When sirloin price goes up, by the law of demand sirloin’s quantity demanded goes down, this roles out (c.). Carefully see, if I change the word from increases to decreases in (c.) then it would be right answer. Price goes up, a product goes out of market is CRAP. By the law of supply , price of sirloin goes up, quantity supplied of sirloin goes up, (e.) is the right answer....
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This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State.
- Fall '10