Sample Quiz 2 - Sample Quiz #2 Ec 201 Michigan State...

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Sample Quiz #2 Ec 201 Spring, 2009 Michigan State University L. Martin 1. An increase in the number of suppliers a. shifts supply to the right reducing price and quantity; b. shifts supply to the left increasing price and reducing quantity; c. shifts supply to the right reducing price and increasing quantity;* d. shifts supply to the left increasing price and quantity; e. rotates the supply curve, giving it a flatter slope. 2. How is the college textbook market affected by an increase in tuition rates? a. Demand shifts to the right increasing price and quantity. b. Demand shifts to the left decreasing price and quantity.* c. Supply shifts to the right increasing quantity and decreasing price. d. Supply shifts to the left decreasing quantity and increasing price. e. It creates a shortage of textbooks. 3. When the market price lies above the market clearing price, there will be a a. shortage and then price will rise; b. surplus and then price will rise; c. shortage and then price will fall;
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Sample Quiz 2 - Sample Quiz #2 Ec 201 Michigan State...

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