# Which of the following statements is true b a

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Chapter 5 / Exercise 4
Exploring Microeconomics
Sexton
Expert Verified
34.Which of the following statements is true?b.a)Endogenous changes to demand and supply curves cause them to shift.c.b)Exogenous changes can never affect both the demand and supply curves. d.c)Exogenous changes can sometimes affect both the demand and supply curves.e.d)Movement along a demand curve means that only an endogenous factor is changing.Ans: C
Difficulty: MediumHeading: Three Key Analytical Tools LO 2 Describe the concepts of constrained optimization, equilibrium analysis, and comparative statics.a.35.Currently, 100,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will:
Difficulty: HardHeading: Three Key Analytical ToolsLO 2 Describe the concepts of constrained optimization, equilibrium analysis, and comparative statics.a.36.Currently, 100,000 units of a good are traded on the market. The government imposes a tax onproducers that raises the unit cost of production of the good. This will:
Difficulty: HardHeading: Three Key Analytical ToolsLO 2 Describe the concepts of constrained optimization, equilibrium analysis, and comparative statics.a.37.If we were to build a model measuring the supply of corn, which of the following could be an example of an exogenous variable in the model?
Difficulty: HardHeading: Three Key Analytical ToolsLO 2 Describe the concepts of constrained optimization, equilibrium analysis, and comparative statics.a.38.Suppose that we illustrate demand and supply with quantity on the horizontal axis and price onthe vertical axis. Which of the following statements isfalse?b.a)Changes in exogenous variables are represented by shifts in the demand and/or supply curves.c.b)Changes in endogenous variables are represented by movements along the supply and/or demand curves.d.c)Price and quantity are the exogenous variables in this representation. e.d)The equilibrium is represented as the intersection of supply and demand curves. Ans: C
Difficulty: MediumHeading: Three Key Analytical Tools
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Chapter 5 / Exercise 4
Exploring Microeconomics
Sexton
Expert Verified
LO 2 Describe the concepts of constrained optimization, equilibrium analysis, and comparative statics.a.