Question 1

Figure 4-E  
-According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not.

Accepted Answer

A) True 
 B)False

Question 2

Exhibit 4-B  
-Refer to Exhibit 4-B.The graph that best illustrates a relatively inelastic (but not perfectly inelastic) demand curve is:

Accepted Answer

A) Graph A. 
B) Graph B. 
C) Graph C. 
D) Graph D. 
A) Graph A. 
B) Graph B. 
C) Graph C. 
D) Graph D.

Question 3

Ceteris paribus, if an 8% increase in price leads to a 6% increase in the quantity supplied, then:

Accepted Answer

A) supply is elastic. 
B) supply is unit elastic. 
C) supply is inelastic. 
D) the supply curve is perfectly vertical. 
E) the supply curve is perfectly horizontal. 
A) supply is elastic. 
B) supply is unit elastic. 
C) supply is inelastic. 
D) the supply curve is perfectly vertical. 
E) the supply curve is perfectly horizontal.

Question 4

The face value of a ticket to Super Bowl was approximately $1,200 in 2009.The game is very popular and there are a number of fans who are not able to get tickets to this game.At the same time, many fans claim that prices are too high and that the NFL should lower the face value of the ticket prices.Would a decrease in ticket prices move the market towards equilibrium? Would it eliminate the shortage of tickets? Why or why not?

Accepted Answer

Lowering the ticket prices would not mov

Question 5

A perfectly inelastic supply curve is:

Accepted Answer

A) upward sloping to the right. 
B) downward sloping to the left. 
C) horizontal. 
D) vertical. 
E) any of the above. 
A) upward sloping to the right. 
B) downward sloping to the left. 
C) horizontal. 
D) vertical. 
E) any of the above.

Question 6

An increase in demand will increase the quantity sold but not the price in a market if:

Accepted Answer

A) supply is perfectly elastic 
B) supply is perfectly inelastic 
C) supply is relatively elastic. 
D) supply is relatively inelastic. 
A) supply is perfectly elastic 
B) supply is perfectly inelastic 
C) supply is relatively elastic. 
D) supply is relatively inelastic.

Question 7

For a given increase in price, a greater elasticity of demand will result in a greater

Accepted Answer

A) increase in quantity demanded. 
B) increase in demand. 
C) decrease in quantity demanded. 
D) decrease in demand. 
A) increase in quantity demanded. 
B) increase in demand. 
C) decrease in quantity demanded. 
D) decrease in demand.

Question 8

The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89.In order to boost ticket revenues, an economist would advise:

Accepted Answer

A) decreasing the price of hockey match tickets because demand is elastic. 
B) increasing the price of hockey match tickets because demand is elastic. 
C) not changing the price of hockey match tickets because demand is unit elastic. 
D) decreasing the price of hockey match tickets because demand in inelastic. 
E) increasing the price of hockey match tickets because demand is inelastic. 
A) decreasing the price of hockey match tickets because demand is elastic. 
B) increasing the price of hockey match tickets because demand is elastic. 
C) not changing the price of hockey match tickets because demand is unit elastic. 
D) decreasing the price of hockey match tickets because demand in inelastic. 
E) increasing the price of hockey match tickets because demand is inelastic.

Figure 4-E -According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not.

Exhibit 4-B -Refer to Exhibit 4-B.The graph that best illustrates a relatively inelastic (but not perfectly inelastic) demand curve is:

Ceteris paribus, if an 8% increase in price leads to a 6% increase in the quantity supplied, then:

A perfectly inelastic supply curve is:

An increase in demand will increase the quantity sold but not the price in a market if:

For a given increase in price, a greater elasticity of demand will result in a greater

The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89.In order to boost ticket revenues, an economist would advise:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 4: Using Supply and Demand

Figure 4-E -According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not.

Exhibit 4-B -Refer to Exhibit 4-B.The graph that best illustrates a relatively inelastic (but not perfectly inelastic) demand curve is:

Ceteris paribus, if an 8% increase in price leads to a 6% increase in the quantity supplied, then:

A perfectly inelastic supply curve is:

An increase in demand will increase the quantity sold but not the price in a market if:

For a given increase in price, a greater elasticity of demand will result in a greater

The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89.In order to boost ticket revenues, an economist would advise:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters