review of chapter 03

review of chapter 03 - Econ 221-01 Winter, 2008 Williamson...

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Econ 221-01 Winter, 2008 Williamson Review of Chapter #3 1. The demand curve illustrates the fact that consumers A) tend to purchase more of a good as its price rises. B) purchase name brand products more frequently than generic products. C) tend to purchase more of a good as its price falls. D) purchase more of a good as their incomes fall. E) purchase more of a good as their incomes rise. 2. Which of the following is NOT a characteristic of a market in equilibrium? A) Quantity demanded equals quantity supplied. B) Excess supply is zero. C) All consumers are able to purchases as much as they wish. D) Excess demand is zero. E) The price is stable, i.e., there is no pressure for it to change. 3. When the price of a good is below its equilibrium value, A) consumers will bid the price up. B) excess supply will occur. C) it will tend to stay below the equilibrium value. D) suppliers will notice their inventories are growing. E) suppliers will lower the price.
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review of chapter 03 - Econ 221-01 Winter, 2008 Williamson...

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