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#1 The law of demand states that (1)_____ and (2)_____ are inversely related.

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#2 The difference between supply and quantity supplied is that supply refers to the entire (1)_____ while quantity supplied refers to a specific (2)_____.
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#3 Price ceilings are only effective if they are placed (1)_____ the equilibrium price and price floors are only effective if placed (2)_____ the equilibrium price.
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#4 The law of supply states that price and quantity are (1)_____ related.
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#5 If at the current market price of $8, quantity demanded is 8,000 and quantity supplied is 3,500, then we have a (1)_____ of (2)_____.
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#6 Graphically, to get a market demand curve from individual demand curves, we (1)_____ up the individual demand curves.
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#7 If two goods are substitutes and the price increase for one, the demand will (1)_____ for the other.
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#8 New sellers entering the market will cause supply to (1)_____.
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#9 An increase in supply will cause the market price to (1)_____ and the market quantity to (2)_____.
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#10 If two goods are complements and the price decreases for one, the demand will (1)_____ for the other
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#11 When graphing demand, economists conventionally place (1)_____ on the Y-axis and (2)_____ on the X-axis.
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#12 When graphing supply, economists conventionally place (1)_____ on the Y-axis and (2)_____ on the X-axis.
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#13 Demand for normal goods varies (1)_____ with income while inferior goods vary (2)_____ with income.
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#14 Graphically, to get a market supply curve from individual supply curves, we (1)_____ up the individual supply curves.
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#15 An increase in taxes for a good will (1)_____ supply while an increase subsidies will (2)_____ supply.
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#16 A decrease in demand will cause the equilibrium price to (1)_____ and the equilibrium quantity to (2)_____.
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Multiple Choice[break]
#1 What are might be two possible reasons a consumer buys less of a product when the price has increased?
A. Income and the price of substitute goods have changed.
B. There have been changes in taxes and subsidies.
C. The Coriolis effect and the Magnus effect.
D. The income effect and the substitution effect.
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#2 Which of the following are economists referring to when talking about supply?
A. The various quantities of a good or service that consumers are willing and able to purchase over a range of prices during a specified period of time.
B. The various quantities of a good or service that producers are willing and able to sell over a range of prices during a specified period of time.
C. All else equal, as price increases, quantity demanded decreases and as price decreases, quantity demanded increases.
D. All else equal, as price increases, quantity supplied increases and as price decreases, quantity supplied decreases.
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#3 What effect will surpluses have on the market for a good?
A. Increase supply and increase demand of the good until the equilibrium price and quantity is reached.
B. Reduce supply and reduce demand of the good until the equilibrium price and quantity is reached.
C. Put pressure on prices to fall.
D. No effect
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#4 Which of the following are economists referring to when talking about demand?
A. The various quantities of a good or service that consumers are willing and able to purchase over a range of prices during a specified period of time.
B. The various quantities of a good or service that producers are willing and able to sell over a range of prices during a specified period of time.
C. All else equal, as price increases, quantity demanded decreases and as price decreases, quantity demanded increases.
D. All else equal, as price increases, quantity supplied increases and as price decreases, quantity supplied decreases.
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#5 Which of the following will not cause the supply of corn to change?
A. The price of wheat changes.
B. The number of people buying corn changes.
C. The government subsidization of corn changes.
D. The efficiency of corn harvesting changes.
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#6 Which of the following will not cause the demand for blueberries to change?
A. The price of blackberries fall.
B. A blueberry diet craze sweeps the nation.
C. The price of blueberries is expected to change.
D. The price of blueberries changes.
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#7 Which of the following represents an increase in quantity supplied in this graph?
Demand and Supply PS Graph 1
A. S1 to S2.
B. S2 to S1.
C. Point a to point b.
D. Point b to point a.
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#8 You notice that the price of your favorite brand of cereal has risen. Which of the following might be a cause of the price rise?
A. The cost of producing cereal has fallen.
B. The prices of other similar cereals have risen.
C. Fewer people seem to be buying this brand.
D. The price of milk has risen.
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#9 What are the market effects of increasing demand and decreasing supply at the same time?
A. Price increases, quantity decreases.
B. Price is indeterminate, quantity increases.
C. Price increases, quantity is indeterminate.
D. Price decreases, quantity increases.
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Short Answer[break]
#1 What are the determinants of demand?
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#2 What are the determinants of supply?
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#3 What are the two endogenous variables in the demand model?
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#4 What do economists call the ability for markets to be able to reach the market clearing price on its own?
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#5 As a consumer, a rising product price makes purchasing other similar products relatively cheaper to me. What effect am I describing?
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#6 Find the equilibrium price and quantity. If the government instituted a market price of $5, would this be a price ceiling or a price floor? What would be the resulting surplus or shortage?
Demand and Supply PS Graph 2
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#7 How will improvements in production techniques affect supply? Why?
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#8 What is the equation of this line? Is this line more likely to be a demand curve or a supply curve?
Demand and Supply PS Graph 3
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#9 What is the equation of this line? Is this line more likely to be a demand curve or a supply curve?
Demand and Supply PS Graph 4
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#10 As a consumer, a falling product price allows me to purchase more things with my given level of income. What effect am I describing?
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#11 Computers and software are examples of what kind of goods?
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#12 Fill in the following table. What is the equilibrium price and quantity?
Demand and Supply PS Table 1
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#13 Your friend says to you, “In the market, when demand increases, price increase causing the quantity to increase. But the law of demand states that as prices go up, quantity should go down. Therefore, law of demand must be wrong.” Explain the flaw in his reasoning.
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#14 Chicken and beef are examples of what kind of goods?
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#15 What are the two endogenous variables in the supply model?
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#16 Cell phone plans and butter are examples of what kind of goods?
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#17 What effect will a change in resource prices have on supply? Why do resource prices affect supply at all?
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#18 Suppose you are hired as an economist to analyze the market L-shaped couches. You notice that every year for the past five years, more and more L-shaped couches have been sold at lower and lower prices. What might be a possible explanation for this?
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#19 Used cars are an example of what kind of goods?
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#20 How do you know if a variable is endogenous or exogenous?
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#21 What effect will a change in producer expectations have on supply?
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#22 Suppose we are at the equilibrium level for some good. If the consumers of this product have their incomes increase, what will happen to the equilibrium price?
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#23 Given the demand equation $P=-1/3Q_{D}+25 and the supply equation $P=2/3Q_{S}+4, find the equilibrium price and quantity without graphing.
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#24 Using the info above, if the government instituted a market price of $10, do we have a shortage or surplus? Of how much? Is this a price ceiling or price floor?
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#25 Graph $P=-1/3Q_{D}+25 and $P=2/3Q_{S}+4 and the price ceiling of $10. Does the information from the graph match the answers you got earlier?
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#26 Lobster is an example of what kind of goods?
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#27 What effects do a change in the prices of other goods have on supply of a good?
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#28 Identify the four complex demand and supply cases and their resulting effects on the market price and quantity.
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True/False[break]
#1 Supply curves have a positive slope.
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#2 Demand and supply curves can never be straight, otherwise we wouldn’t call them curves.
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#3 One explanation for why demand slopes downward is because of a concept called diminishing marginal cost.
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#4 Economists conventionally label the X-axis price and the Y-axis quantity when graphing demand and supply.
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#5 Demand for normal goods varies directly with income.
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#6 We can determine the market price and quantity is for a good or service just by looking at the supply curve.
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#7 All else equal, an improvement in production technology causes the equilibrium price to fall.
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Disclaimer

All works here are my own and are considered works in progress and may be subject to change at any time. The opinions expressed here are mine only unless otherwise noted. I am not being paid by a third party to endorse a product of any sort. These writings are written for my own references. I do not claim to be a professional of any kind so follow any information you find here at your own risk. The facts that I post on here are things that I believe to be true, but may not necessarily be so. This is the internet; do your own fact checking and take everything with a grain of salt.

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