# Microeconomics Quiz #1 Study Guide

Size: px
Start display at page:

Transcription

2 8. Which of the following would not affect (or shift) an individual's (a person s) demand curve? a. expectations b. income c. prices of related goods d. the number of buyers 9. If the number of buyers in the market decreases, the a. market demand will increase. b. market demand will decrease. c. market supply will increase. d. market supply will decrease. 10. Pizza is a normal good if a. the demand for pizza rises (increases) when income rises. b. the demand for pizza rises when the price of pizza falls. c. the demand curve for pizza slopes downward. d. the demand curve for pizza shifts to the right when the price of burritos falls, assuming pizza and burritos are substitutes. 11. On p. 82 of the Principles of Microeconomics (6 th edition) textbook, under the article, What s Wrong with Price Gouging, is the author Jeff Jacoby for or against price gouging after a disaster? The table below shows individual (personal) demand schedules in a market. (Hint: Create a column for Market. ) Table 4-1 Price of the Good Aaron Angela Austin Alyssa \$ units 16 units 4 units 8 units Refer to Table 4-1. When the price of the good is \$1.00, the quantity demanded in this market would be a. 42 units. b. 31 units. c. 24 units. d. 14 units. 13. Refer to Table 4-1. If the price increases from \$1.00 to \$1.50, a. the market demand decreases by 20 units. b. individual demand curves, when drawn, will shift to the left. c. the quantity demanded in the market decreases by 2 units. d. the quantity demanded in the market decreases by 7 units. 14. If buyers today become more willing and able than before to purchase (buy) larger quantities of Vanilla Coke at each price of Vanilla Coke, a. we will observe a movement downward along the demand curve for Vanilla Coke. b. we will observe a movement upward along the demand curve for Vanilla Coke. c. the demand curve for Vanilla Coke will shift to the right. d. the demand curve for Vanilla Coke will shift to the left. 2

3 Figure Refer to Figure 4-2. The shift from D to D 1 is called a. an increase in demand. c. a decrease in quantity demanded. b. a decrease in demand. d. an increase in quantity demanded. 16. A decrease in the number of sellers in the market causes a. the supply curve to shift to the left. b. the supply curve to shift to the right. c. a movement up and to the right along a stationary (unchanged) supply curve. d. a movement downward and to the left along a stationary supply curve. 17. If demand is inelastic, then a. buyers do not respond much to a change in price (buyers are price-insensitive). b. buyers respond substantially to a change in price, but the response is very slow. c. buyers do not alter (change) their quantities demanded much in response to advertising, fads, or general changes in tastes. d. the demand curve is very flat. 18. A good will have a more inelastic demand, a. the greater the availability of close substitutes. b. the broader the definition of the market. c. the longer the period of time (horizon). d. the more it is regarded (considered) as a luxury. 19. When the price of candy is \$0.50, the quantity demanded is 400 packs (units) per day. When the price falls to \$0.40, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for candy is: (Hint: Calculate total revenue if price = \$0.50 and then if price = \$0.40 then compare the revenues.) a. inelastic. b. elastic. c. unit elastic. d. perfectly inelastic. 3

4 Figure Refer to Figure 5-2. The price elasticity of demand between point A and point B, using the midpoint method, is a. 1 b. 1.5 c. 2 d Refer to Figure 5-2. If the price decreased from \$18 to \$6, a. total revenue would increase by \$1,200 and demand is elastic between points A and C. b. total revenue would increase by \$800 and demand is elastic between points A and C. c. total revenue would decrease by \$1,200 and demand is inelastic between points A and C. d. total revenue would decrease by \$800 and demand is inelastic between points A and C. 22. Refer to Figure 5-2. Sellers total revenue would increase if the price a. increased from \$4 to \$6. b. increased from \$16 to \$18. c. decreased from \$8 to \$6. d. All of the above are correct. 23. In any market, total revenue is calculated by taking the price of the good and a. dividing it by the price elasticity of demand. b. multiplying it by the price elasticity of demand. c. multiplying it by the quantity of the good. d. multiplying it by the quantity of the good and then subtracting the costs of production. 24. What is meant by income elasticity of demand? What kind of a good would have a negative income elasticity of demand? A positive income elasticity? Figure 5-5 4

5 25. Refer to Figure 5-5. When the price is \$30, total revenue is a. \$3,000. b. \$5,000. c. \$7,000. d. \$9, Refer to Figure 5-5. When price falls from \$50 to \$40, it can be inferred (concluded) that demand between those two prices is a. inelastic, since total revenue decreases from \$8,000 to \$5,000. b. inelastic, since total revenue increases from \$5,000 to \$8,000. c. elastic, since total revenue increases from \$5,000 to \$8,000. d. unit elastic, since total revenue increases from \$5,000 to \$8, Refer to Figure 5-5. An increase in price from \$30 to \$35 would a. increase total revenue by \$250 b. decrease total revenue by \$250. c. increase total revenue by \$500. d. decrease total revenue by \$ The price elasticity of supply measures how much a. the quantity supplied responds to changes in input prices. b. the quantity supplied responds to changes in the price of the good. c. the price of the good responds to changes in supply. d. sellers respond to changes in technology. 29. The price elasticity of supply measures what? 30. If, at the current (actual) price, there is a shortage of a good, a. sellers are producing more than buyers wish to buy and so the current (actual) price is a dis-equilibrium price. b. the market must be in equilibrium. c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied. Figure Refer to Figure 4-7. Equilibrium price and quantity are, respectively, a. \$35 and 200. c. \$25 and 400. b. \$35 and 600. d. \$15 and Refer to Figure 4-7. At a price of \$35, a. there would be a shortage of 400 units. b. there would be a surplus of 200 units. c. there would be a surplus of 400 units. d. there would be an excess supply of 200 units. 5

6 33. Refer to Figure 4-7. At a price of \$15, a. there would be a shortage of 400 units. b. there would be a surplus of 400 units. c. there would be a shortage of 200 units. d. there would be an excess demand of 200 units. 34. Refer to Figure 4-7. At the equilibrium price, a. 200 units would be supplied and demanded. b. 400 units would be supplied and demanded. c. 600 units would be supplied and demanded. d. 600 units would be supplied, but only 200 would be demanded. 35. Refer to Figure 4-7. At a price of \$35, a. a shortage would exist and the price would tend to fall from \$35 to a lower price. b. a surplus would exist and the price would tend to rise from \$35 to a higher price. c. a surplus would exist and the price would tend to fall from \$35 to a lower price. d. an excess demand would exist and the price would tend to fall from \$35 to a lower price. 36. Refer to Figure 4-7. At what price would there be an excess demand amounting to approximately 200 units of the good? a. \$15 c. \$30 b. \$20 d. \$ A surplus exists in a market if a. there is an excess demand for the good. b. the situation is such that the law of supply and demand would predict an increase in the price of the good from its current level. c. the current (actual) price is above its equilibrium price. d. None of the above is correct. 38. If excess demand exists in a market, then we know that the current (actual) price is a. below the equilibrium price and quantity demanded is greater than quantity supplied. b. above the equilibrium price and quantity demanded is greater than quantity supplied. c. above the equilibrium price and quantity supplied is greater than quantity demanded. d. below the equilibrium price and quantity supplied is greater than quantity demanded. 39. Suppose you are given a hypothetical demand curve in Table 1 below represented by a pair of price-quantity combinations. Table 1. P, \$ Price per unit Q D (qty. demanded) Q S (qty. supplied) 15 1,500 units 750 units ,250 a. Calculate the slope of the demand curve. c. Calculate the slope of the supply curve. Demand slope, b = Supply slope, b = (keep 3 decimal places) (keep 2 decimal places) b. Calculate the demand intercept. d. Calculate the supply intercept. Demand intercept, a = Supply intercept, a = 6

7 e. Calculate the equilibrium quantity. Show your solution. f. Calculate the equilibrium price. Show your solution Equilibrium quantity = units Equilibrium price = \$ g. Label the supply and demand graph in Fig. 2 below given your calculations. Write out the full demand and supply equations. P (\$) Fig. 2 Supply equation: P = Demand equation: P = eq. price eq. qty. Q units Check your work against these numbers: Eq. price = \$17.5 Eq. qty. = 1,000 units 40. What is market segmentation? 7

### Basic Economics Test #1 Study Guide

Basic Economics Test #1 Study Guide Note: Below is a list of study questions for the upcoming Test #1. The test covers Ch. 4, 5, 6, 7 and 8 of the (Mankiw) textbook and supplementary materials presented

### Practice Problems. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

Class: Date: Practice Problems Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The demand for a good or service is determined by a. those who buy the good

### Elasticity and Its Applications

Elasticity and Its Applications 1. In general, elasticity is a. a measure of the competitive nature of a market. b. the friction that develops between buyer and seller in a market. c. a measure of how

### L: What happens in a market?

L: What happens in a market? REMINDER: TYPES OF ECONOMIES 1. Traditional 2. Command 3. Market 4. Mixed *all about who answers basic economic questions/controls factors of production (land/labor/capital/

### Multiple Choice questions /60 Problem 1 /20 Problem 2 /12 Problem 3 /8

Econ 200 Midterm 1 Spring 2011 March 29 2011 Instructions : 1-) The exam is 65 minutes 2-) You have to provide detailed solution to each problem 3-) Any form of cheating (Peeking to other s exam, use your

### 1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness

### Chapter 4 Review: Demand. CHAPTER 4 Graphic Organizer

Chapter 4 Review: Demand CHAPTER 4 Graphic Organizer CHAPTER 4, SECTION 1 Key Concepts What Is Demand? A market is a place where people buy and sell things. A market has two sides. There is a buying side

### Supply and Demand. ECO 120: Global Macroeconomics

Supply and Demand ECO 120: Global Macroeconomics 1 1.1 Goals of today s class Goals Specific Goals Learn what demand is and what influences demand. Learn what supply is and what influences supply. Learn

### MICROECONOMICS Midterm Test (sample)

Student Name:.. MICROECONOMICS Midterm Test (sample) Time: 60 minutes Student Number:. Total Mark:... /50 Class:. Converted Mark:../10 Section A: QUIZ 20 marks Show your answers on the ANSWER SHEET at

### AP Econ Section 9 Micro

Name: Date: _ ID: A AP Econ Section 9 Micro Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Gas prices recently increased by 25%. In response, purchases

### Microeconomics. More Tutorial at

Microeconomics Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. A legal maximum price at which a good can be sold is a price a. floor. b.

### 1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. Quantity demanded vs demand: quantity demanded is

### ECON 120 SAMPLE QUESTIONS

ECON 120 SAMPLE QUESTIONS 1) The price of cotton clothing falls. As a result, 1) A) the demand for cotton clothing decreases. B) the quantity demanded of cotton clothing increases. C) the demand for cotton

### INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION

ECO105 (F) / Page 1 of 12 Section A INTI COLLEGE MALAYSIA FOUNDATION IN BUSINESS INFORMATION TECHNOLOGY (CFP) ECO105: ECONOMICS 1 FINAL EXAMINATION: JANUARY 2006 SESSION Instructions: This section consists

### ELASTICITY. Chapt er. Key Concepts

Chapt er 4 ELASTICITY Key Concepts Price Elasticity of Demand The price elasticity of demand is a units-free measure of responsiveness of the quantity demanded of a good to a change in its price when all

### ECON 251. Exam 1 Pink. Fall 2013

ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater

### 2. For a competitive market, which of the following statements is correct?

HOMEWORK 1 (Demand and Supply) ECO41 FALL 2013 UDAYAN ROY This homework assignment tests your understanding of the theory of supply and demand. Any textbook on the principles of economics will cover this

### Basic Economics Chapter 4

1 Basic Economics Chapter 4 The Market Forces of Supply and Markets and Competition Market = a group of buyers and sellers of a particular good or service Buyers = determine the demand for the product

### ECON (ENT) COURSE LESSON THREE. Supply and Demand. CHAPTER 7 Supply and Demand. Lesson Three Supply and Demand 93

ECON (ENT) COURSE LESSON THREE Supply and Demand CHAPTER 7 Supply and Demand Lesson Three Supply and Demand 93 EXERCISES Matching (28 points) From the list below, select the term that matches each of the

### Supply and Demand. ECO 120: Global Macroeconomics

Supply and Demand ECO 120: Global Macroeconomics 1 1.1 Goals of today s class Goals Specific Goals Learn what demand is and what influences demand. Learn what supply is and what influences supply. Learn

### Chapter 3 Where Prices Come From: The Interaction of Demand and Supply

Economics 6 th edition 1 Chapter 3 Where Prices Come From: The Interaction of Demand and Supply Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 What determines

### Test 2. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Name R# ECO 2301.007 - Roach Test 2 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Air pollution generated by a steel mill is an example of 1)

### SUPPLY. Chapt er. Key Concepts. Markets and Prices

Chapt er 3 DEMAND AND SUPPLY Key Concepts Markets and Prices A competitive market is a market that has many buyers and sellers, so no single buyer or seller can influence the price. The money price of

### The price elasticity of demand when price decreases from \$9 to \$7 is A B C D -1.

Varsity Economics Product Market: Elasticity 1 The price elasticity of demand is a measure of the A effect of changes in demand on the price. B relationship between price and profitability. C responsiveness

### MIDTERM I. GROUP A Instructions: November 3, 2010

EC101 Sections 04 Fall 2010 NAME: ID #: SECTION: MIDTERM I November 3, 2010 GROUP A Instructions: You have 60 minutes to complete the exam. There will be no extensions. Students are not allowed to go out

### Economics 101 Midterm Exam #1. October 4, Instructions

Economics 101 Midterm Exam #1 October 4, 2001 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do not have one you will need to borrow one from

### Review 01. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

Name: Class: Date: Review 01 Multiple Choice Identify the choice that best completes the statement or answers the question. Table 3-1 Assume that Sardi and Tinaka can switch between producing corn and

### Opportunity Costs when production is in quantity per/hr =

CHAPTER 1 THE CENTRAL IDEA 1.1 Scarcity and Choice for Individuals SCARCITY PRINCIPLE Scarcity principle (no free lunch principle): Although we have boundless needs and wants, the resources available to

### ECON 251 Exam 1 Pink Spring 2012

ECON 251 Exam 1 Pink Spring 2012 1. Which of the following is an example of the economic resource of capital? a. A \$20 bill b. A corporate bond c. a government savings bond d. none of the above 2. John

### Elasticity. Demand Curve. Quantity of units

Cooleconomics.com Principles of Economics Elasticity Contents: Demand and steepness Supply and steepness Elasticity introduction price elasticity of demand price elasticity of supply income elasticity

### Economics 101 Midterm Exam #1. February 27, Instructions

Economics 101 Spring 2008 Professor Wallace Economics 101 Midterm Exam #1 February 27, 2008 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do

### Chapter 4 Lecture Notes. I. Circular Flow Model Revisited. II. Demand in Product Markets

Chapter 4 Lecture Notes I. Circular Flow Model Revisited Recall that the circular flow model is a simplified representation of how the economy operates. There are two specific individual decision making

### Exercise questions. ECON 102. Answer all questions. Multiple Choice Questions. Choose the best answer.

Exercise questions. ECON 102 Answer all questions. Multiple Choice Questions. Choose the best answer. 1.On Saturday morning, you rank your choices for activities in the following order: go to the library,

### Sample. Final Exam Sample Instructor: Jin Luo

Final Exam Instructor: Jin Luo Multiple Choice (2 *30 = 60) Identify the letter of the choice that best completes the statement or answers the question. 1. Price takers refer to buyers and sellers in a.

### Economics: New Ways of Thinking Ancillary Sampler

Economics: New Ways of Thinking Ancillary Sampler Thank you for your interest in EMC Publishing s Economics: New Ways of Thinking! By now you have probably discovered why we were so excited to offer our

### EQ: What is Income Elasticity of Demand?

EQ: What is Income Elasticity of Demand? Changes in Consumer Income shift the demand curve: Normal Goods goods that are more desirable to consumers; when people have more money, they buy more normal goods

### Unit 2: Demand, Supply, and Consumer Choice

Unit 2: Demand, Supply, and Consumer Choice 1 DEMAND DEFINED What is Demand? Demand is the different quantities of goods that consumers are willing and able to buy at different prices. (Ex: You are able

### Economics for business 2

Economics for business 2 Revision lecture: Demand, supply and markets: The terms supply and demand refer to the behavior of people as they interact with one another in markets Demand: Quantity demanded

### PowerPoint Lecture Notes for Chapter 4. Principles of Microeconomics 6 th edition, by N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich

oweroint Lecture Notes for Chapter 4 The Market Forces of Supply and Demand rinciples of Microeconomics 6 th edition, by N. Gregory Mankiw remium oweroint Slides by Ron Cronovich N. Gregory Mankiw Microeconomics

### Macro Unit 1b. This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.

Macro Unit 1b Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. Notice that the remainder of this unit assumes

### ECON 200. Introduction to Microeconomics

ECON 200. Introduction to Microeconomics Homework 3 Part I Name: [Multiple Choice] 1. A life-saving medicine without any close substitutes will tend to have (a) a. a small elasticity of demand. b. a large

### EC101 DD/EE PRACTICE Midterm 1 October 3, 2017 Version 09

EC101 DD/EE PRACTICE Midterm 1 October 3, 2017 Version 09 Name (last, first): Student ID: U - - Discussion Section: Signature EC101 DD/EE Practice Midterm 1 F17 INSTRUCTIONS (***Read Carefully***): ON

### MIDTERM I. GROUP A Instructions: November 20, 2013

EC101 Sections 03 Fall 2013 NAME: ID #: SECTION: MIDTERM I November 20, 2013 GROUP A Instructions: You have 60 minutes to complete the exam. There will be no extensions. The exam consists of 30 multiple

### INSTITUTE OF RISING STARS

INSTITUTE OF RISING STARS 1/9,Lalita Park, Main Vikas Marg,Laxmi Nagar Chapter 2 Theory of Demand and Supply 1. Which of the following pairs of goods is an example of substitutes? (a) Tea and sugar (b)

### Quiz No 1 ECO 402. Quiz # 1 ECO402 (Microeconomics) Semester spring 2008 Total Marks 10

Quiz # 1 ECO402 (Microeconomics) Semester spring 2008 Total Marks 10 Instructions: 1. This quiz covers Lesson 9-14 2. Last date for submission of quiz is 03/05/08. 3. Upload your quiz with in due date

### FIRST MIDTERM EXAMINATION ECON 200 Spring 2007 DAY AND TIME YOUR SECTION MEETS:

FIRST MIDTERM EXAMINATION ECON 200 Spring 2007 STUDENT'S NAME: STUDENT'S IDENTIFICATION NUMBER: DAY AND TIME YOUR SECTION MEETS: BEFORE YOU BEGIN PLEASE MAKE SURE THAT YOUR EXAMINATION HAS BEEN DUPLICATED

### I. Introduction to Markets

University of Pacific-Economics 53 Lecture Notes #3 I. Introduction to Markets Recall that microeconomics is the study of the behavior of individual decision making units. We will be primarily focusing

### Text transcription of Chapter 4 The Market Forces of Supply and Demand

Text transcription of Chapter 4 The Market Forces of Supply and Demand Welcome to the Chapter 4 Lecture on the Market Forces of Supply and Demand. This is the longest chapter for Unit 1, with the most

### Exam Spring. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

Class: Date: Exam1 2014 Spring Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Ch.6 When a tax is imposed on the buyers of a good, the demand curve shifts

### Principles of MicroEconomics: Econ102

Principles of MicroEconomics: Econ102 Price Elasticity of Demand: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of

### ECON 203. Homework #1 Solutions

ECON 203 Homework #1 Solutions 2. Use supply and demand curves to illustrate how each of the following events would affect the price of butter and the quantity of butter bought and sold: a. An increase

### ASSIGNMENT MEMORANDUM

Page 1 of 5 ASSIGNMENT MEMORANDUM SUBJECT : MICROECONOMICS (MIC) ECONOMICS 2 (ECO201) ASSIGNMENT : 2 ND SEMESTER 2011 SPECIFIC INSTRUCTIONS Answer ALL the questions. Textbook references are to Mohr, P.,

### VANCOUVER ISLAND UNIVERSITY. ECON100: Principles of Economics, Spring 2013 MIDTERM EXAM I

VANCOUVER ISLAND UNIVERSITY ECON100: Principles of Economics, MIDTERM EXAM I Name (Last, First): ID #: Signature: THIS EXAM HAS TOTAL 10 PAGES INCLUDING THE COVER PAGE Instructions: Total marks 65 and

### Midterm 2 - Solutions

Ecn 100 - Intermediate Microeconomics University of California - Davis November 12, 2010 Instructor: John Parman Midterm 2 - Solutions You have until 11:50am to complete this exam. Be certain to put your

### Lesson-9. Elasticity of Supply and Demand

Lesson-9 Elasticity of Supply and Demand Price Elasticity Businesses know that they face demand curves, but rarely do they know what these curves look like. Yet sometimes a business needs to have a good

### FINAL. January 17, 2011 GROUP A

EC101 Sections 04 Fall 2010 NAME: ID #: SECTION: Instructions: FINAL January 17, 2011 GROUP A You have 90 minutes to complete the exam. There will be no extensions. Students are not allowed to go out of

### CHAPTER 2 THEORY OF DEMAND AND SUPPLY. Unit 3. Supply. The Institute of Chartered Accountants of India

CHAPTER 2 THEORY OF DEMAND AND SUPPLY Unit 3 Supply Learning Objectives At the end of this unit you will be able to : understand the meaning of supply. understand what determines supply. get an insight

### Lesson 3. Adam Smith and the Free Market 1/27/2013. Markets and Competition. Demand. Unit 2. Krugman, Module 5 pp

Unit 2 Adam Smith and the Free Market Lesson 3 Krugman, Module 5 pp. 7-5 0 Markets and Competition A market is a group of buyers and sellers of a particular product. A competitive market is one with many

### Chapter 4: Demand. Section I: Understanding Demand. Section II: Shifts of the Demand Curve. Section III: Elasticity of Demand

Chapter 4: Demand Section I: Understanding Demand Section II: Shifts of the Demand Curve Section III: Elasticity of Demand Section 1: Understanding Demand LEQ: What is the law of demand? VOCAB: demand

### Demand and Supply: An Introduction

Principles of Macroeconomics, 8th Edition - Instructor's Manual - Chapter 2 CHAPTER TWO Demand and Supply: An Introduction Overview Comments This chapter covers one of the most important subjects in economics.

### AP Microeconomics Chapter 3 Outline

I. Learning Objectives In this chapter students should learn: II. Markets III. Demand A. What demand is and how it can change. B. What supply is and how it can change. C. How supply and demand interact

### LEARNING UNIT 4 LEARNING UNIT 4

DATE: March 2014 MODULE: PMIC6111 TEXTBOOK REFERENCE: CHAPTER 7 pgs 109-132 THEME: DEMAND, SUPPLY AND PRICES OBJECTIVES: BY END OF YOU SHOULD KNOW THE FOLLOWING: CONSTRUCT AND INTERPRET GRAPHS EXPLAIN

### After studying this chapter you will be able to

3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences

### ORGANIZING YOUR THOUGHTSII Use the diagram to help you take notes. Supply and prices are related. Indicate how they are related in the diagram.

Chapter 21, Section 1 For use with textbook pages 462 465 What Is Supply? KEY TERMS supply the various quantities of a good or service that producers are willing to sell at all possible market prices (page

### Econ 200 Lecture 4 April 12, 2016

Econ 200 Lecture 4 April 12, 2016 0. Learning Catalytics Session 62335486 1. Change in Demand 2. Supply and the Law of Supply 3. Changes in Supply 4. Equilibrium Putting Supply and Demand Together 5. Impact

### Macroeonomics. The Market Forces of Supply and Demand 8/29/2012. Markets and Competition. In this chapter, look for the answers to these questions:

C H A T E R 4 The Market Forces of Supply and Demand R I N C I L E S O F Macroeonomics N. Gregory Mankiw remium oweroint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights

### Exam 01 - ECON Friday, October 1st

Name: Exam 01 - ECON 2301-05 - Friday, October 1st Figure 1 1. Refer to Figure 1. This economy has the ability to produce at which point(s)? a. A, B, D b. A, B c. C, F, G d. A, B, C, F, G 2. Any point

### Demand and Supply. Economics

Demand and Supply Economics How Do Demand and Price Interact? Demand = What we are willing and able to buy at various prices. Demand is expressed in terms of a time frame: eg. per day or per week. Quantity

### Ecn Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam You have until 12:30 to complete this exam. Be certain to put your name, id number

### Multiple Choice Questions Exam Econ 205 Pascal Courty MOCK MIDTERM

Multiple Choice Questions Exam Econ 205 Pascal Courty MOCK MIDTERM Instructions: This is a closed-book exam. There are 30 questions and you have 45 minutes. Each question has only one correct answer. A

### Chapter 2 The Basics of Supply and Demand

Chapter 2 The Basics of Supply and Demand Read Pindyck and Rubinfeld (2013), Chapter 2 Microeconomics, 8 h Edition by R.S. Pindyck and D.L. Rubinfeld Adapted by Chairat Aemkulwat for Econ I: 2900111 Chapter

### University of Toronto October 17, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1

Department of Economics Prof. Gustavo Indart University of Toronto October 17, 2008 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The

### Exam 01 - ECON Friday, October 1st

Name: ID: A Exam 01 - ECON 2301-05 - Friday, October 1st 1. Demand is said to be inelastic if the a. quantity demanded changes proportionately the same as price. b. quantity demanded changes proportionately

### Lecture 1: Supply and Demand

Lecture 1: Supply and Demand August 29, 2017 Overview Course Administration Supply and Demand Market and Models Demand Supply Market Equilibrium Elasticity Course Administration 1. Expectations Call me

### Elasticity and Its Application

Elasticity and Its Application Elasticity... is a measure of how much buyers and sellers respond to changes in market conditions allows us to analyze supply and demand with greater precision. Journal Question-Name

### Formula: Price of elasticity of demand= Percentage change in quantity demanded Percentage change in price

1 MICRO ECONOMICS~ CHAPTER FOUR CHAPTER FOUR PRICE ELASTICITY OF DEMAND You know that when supply increases, the equilibrium price falls and the equilibrium quantity increases THE PRICE ELASTICITY OF DEMAND~

### EC101 DD/EE Midterm 1 October 3, 2017 Version 04

EC101 DD/EE Midterm 1 October 3, 2017 Version 04 Name (last, first): Student ID: U - - Discussion Section: Signature EC101 DD/EE Midterm 1 F17 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:

### WISE, XMU Principles of Economics Fall, Midterm Exam. 2. An example of a perfectly competitive market would be the market for

Midterm Exam 1. For markets to work well, there must be (a) market power. (b) a central planner. (c) property rights. (d) abundant, not scarce, resources. 2. An example of a perfectly competitive market

### This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.

Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. The remainder of this unit assumes a perfectly competitive

### Introductory Microeconomics. Dr. Lisa Mohanty TUI University

Introductory Microeconomics Dr. Lisa Mohanty TUI University Supply and Demand Forces that make market economies function Determines the quantity of each good produced Demand and Supply in a competitive

### ECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.

It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 1.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.

### Econ 2113 Test #2 Dr. Rupp Fall 2008

D Econ 2113 Test #2 Dr. Rupp Fall 2008 Name Pledge: I have neither given nor received aid on this exam Version A Signature: Directions: Bubble in name: Last, First Bubble in 00 in Special Codes Sign the

### Ch. 3 LECTURE NOTES Markets II. Demand

Ch. 3 LECTURE NOTES I. Markets A. A market, as introduced in Chapter 2, is an institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of particular goods and services.

### THE UNIVERSITY OF WESTERN ONTARIO. E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2. 2. Check that your examination contains 50 questions.

NAME THE UNIVERSITY OF WESTERN ONTARIO LONDON CANADA E. Rivers ECONOMICS 1021B-001 March 18, 2012 MIDTERM #2 INSTRUCTIONS: 1. You will have 2 hours to complete the exam. 2. Check that your examination

### Chapter 4. Demand, Supply and Markets. These slides supplement the textbook, but should not replace reading the textbook

Chapter 4 Demand, Supply and Markets These slides supplement the textbook, but should not replace reading the textbook 1 What is a market? A group of buyers and sellers with the potential to trade 2 What

### Where Prices Come From: The Interaction of Demand and Supply

R. GLENN HUBBARD ANTHONY PATRICK O BRIEN Microeconomics FOURTH EDITION CHAPTER 3 Chapter Outline and Learning Objectives Where Prices Come From: The Interaction of Demand and Supply 3.1 The Demand Side

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Seat Initials ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 6, 2015 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Seat Initials ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 6, 2015 FORM 2 Directions 1. Fill in your scantron with your unique-id and the form number

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### At the end of chapter 6, you will be able to:

1 How to Study for Chapter 6 Supply and Equilibrium Chapter 6 introduces the factors that will affect the supply of a product, the price elasticity of supply, and the concept of equilibrium price and equilibrium

### Managerial Economics 2013 Block Course by MFZ,TUT CH 3& 4 in your text book. Please you need text book okay??

CH 3& 4 in your text book. Please you need text book okay?? ! " " " #! \$! % % & & & ' ( ) # % !* + % ( , % % !* + % ( ' -."/." 01. ! 2 3, ) 4 " 4 " 5 3, ) %, % ", % " " " " #!! % 3 ) ' " !* + % ( , % %

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Assigned Seat ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 8, 2009 FORM 3 Directions 1. Fill in your scantron with your unique-id and the form number

### ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION

YOUR NAME Assigned Seat ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even October 8, 2009 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number

### Economic Systems, Resource Allocation, and Social Well-Being

Chapter 02 Economic Systems, Resource Allocation, and Social Well-Being Multiple Choice Questions 1. Which of the following descriptions fits the American economy best? A. A pure market economy B. A mixed

### 1. T F The resources that are available to meet society s needs are scarce.

1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility

### Supply and Demand Study Guide

Supply and Demand Study Guide Fill in the blank Demand 1. If price increases, quantity demanded. 2. If the number of buyers decreases, demand. 3. Increasing demand causes the demand curve to shift to the.

### Econ 1 Review Session 1. with Maggie aproberts-warren UCSC Fall 2012

Econ 1 Review Session 1 with Maggie aproberts-warren UCSC Fall 2012 Introduction What will be covered in the exam? Chs. 1-8 What will the exam look like? 20 multiple choice questions 4 short answer/graphing

### Individual & Market Demand and Supply

Mr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (3) Individual & Market Demand and Supply The tools of demand and supply can take us a far way in understanding both specific economic