Practice+Problems_Krugman_Chapter3

Practice+Problems_Krugman_Chapter3 - Practice Problem Set...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Problem Set for Chapter 3 "Supply and Demand" Krugman Name: __________________________ Date: _____________ 1. An increase in demand for good X could be caused by a decrease in the price of X. A) True B) False 2. Which of the following will NOT cause an increase in supply of good X? A) an increase in the technology used to produce good X B) an increase in the price of good X C) an increase in the price of inputs used to produce good X D) both b and c Use the following to answer question 3: Figure: Four Markets for DVDs Page 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. (Figure: Four Markets for DVDs) In the accompanying figure, which of the graphs shows an increase in the quantity demanded of DVDs? A) A B) B C) C D) D Use the following to answer question 4: Figure: Market for DVDs 4. (Figure: Market for DVDs) In this figure, at a rental price of $3, there will be A) equilibrium in the rental market for DVDs. B) an increase in demand. C) an excess supply of 40 DVD rentals. D) an excess demand of 40 DVD rentals. 5. The supply curve for apartments in Oregon reflects how many apartments landlords are willing and able to offer for rent at a specific price. A) True B) False 6. Suppose there is an excess demand for water in Florida. This means that we can expect the price of water to increase in Florida over time. A) True B) False 7. Consider two competing motorcycle manufacturers: Harley-Davidson and Honda. If Harley-Davidson raises the price that it charges for its motorcycles, we can expect: A) a shift to the right in the supply curve of Hondas and lower prices for Hondas. B) a shift to the left in the supply curve of Hondas and higher prices for Hondas. Page 2
Background image of page 2
C) a shift to the right in the demand curve for Hondas and higher prices for Hondas. D) a shift to the left in the demand curve for Hondas and lower prices for Hondas. 8. Which of the following factors cause a movement along the demand curve? A)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

Practice+Problems_Krugman_Chapter3 - Practice Problem Set...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online