Practice Quiz Chap 4 - c as income rises quantity demanded...

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POP QUIZ WORKSHEET 1: CHAPTER 4 NAME:__________________________________ COURSE: ________________________________ 1. An increase in demand: a. causes the demand curve to shift to the left. b. means consumers are willing and able to buy more at any price. c. creates a surplus at the original price. d. could be caused by an increase in the price of a complementary good. 3. The law of supply: a. states that as the price rises, buyers will purchase less. b. states that as the price rises, sellers will supply a greater quantity. c. is applicable in only a few markets. d. is reflected as a downward sloping curve. 4. An increase in supply: a. will cause the supply curve to shift to the left. b. could be caused by a decrease in the price of a necessary factor of production. c. means sellers will produce less at any price. d. will cause the quantity demanded to fall. 5. The law of demand states that: a. there is an inverse relationship between the price and quantity demanded. b. there is a direct relationship between the price and quantity demanded.
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Unformatted text preview: c. as income rises, quantity demanded also rises. d. a decrease in price will increase demand. 6. If at some price the quantity supplied exceeds the quantity demanded, then: a. a surplus exists and the price will fall over time as sellers competitively bid down the price. b. a shortage exists and the price will rise over time as buyers competitively bid up the price. c. the price is below equilibrium. d. equilibrium will be reestablished as the demand curve shifts to the left. 8. Compared to last year, more television sets are being bought while the selling price has risen. This could have caused by: a. an exception to the law of demand. b. an increase in supply. c. an increase in demand. d. a decrease in supply. 9. If we observe the price of a good or service rising, then this could have been caused by: a. an increase in demand. b. an increase in supply. c. a temporary surplus. d. a small increase in demand accompanied with a huge increase in supply....
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This note was uploaded on 04/18/2011 for the course ECON 131 taught by Professor Tba during the Spring '08 term at University of Hawaii, Manoa.

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Practice Quiz Chap 4 - c as income rises quantity demanded...

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