ECON 304 WITH 110+ EXAM QUESTIONS & CORRECT
ANSWERS
The law of demand suggests that as price rise the quantity of a good purchased will also rise. - ANSWER-False
When drawing a graph of demand, price is generally placed on the vertical axis. - ANSWER-True
Changes in the price of a good are considered demand shifters. - ANSWER-False
Demand is defined as the various quantities of a good or service that people are willing and able to buy at various prices during some time period. - ANSWER- True
The law of demand is a fairly weak law. In fact this is one of the weakest laws in economics. - ANSWER-false
An increase in the price of a complement will shift the demand curve to the right. - ANSWER-false
An increase in the price of a substitute will shift the demand curve to the right - ANSWER-true
An increase in the price of the good itself will shift the demand to the left. - ANSWER-false
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An increase in income will always shift the demand to the right. - ANSWER-False
An increase in taste for a good will shift the demand to the right. - ANSWER-True
The supply curve is downward sloping - ANSWER-false
More producers will shift the supply curve to the left - ANSWER-False
An increase in subsidies will shift the supply curve to the right - ANSWER-True
An increase in expected prices in the future will shift the supply curve to the left. - ANSWER-False
An increase in the price of inputs will shift the supply to the left - ANSWER-True
As the price of a good falls people are willing and able to pruduce more of a good or service. - ANSWER-False
Shifting the Demand Curve to the Right will result in an Increase in Price and an Increase in Quantity - ANSWER-True
Shifting the Demand Curve to the Left will result in an Decrease in Price and an Increase in Quantity - ANSWER-False
Shifting the Supply Curve to the Left will result in an Decrease in Price and an Decrease in Quantity - ANSWER-False
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Shifting the Supply Curve to the Right will result in an Decrease in Price and an Increase in Quantity - ANSWER-true
If the Demand is P = 100 - 4Q and the Supply is P=6Q What is the equilibrium Price and Quantity - ANSWER-Q* = 10, P*=60
If the Demand is P = 100 - 4Q and the Supply is P=6Q What is the choke price - ANSWER-100
If the Demand is P = 100 - 4Q and the Supply is P=6Q What is the CS - ANSWER-200
If the Demand is P = 100 - 4Q and the Supply is P=6Q What is the PS - ANSWER-300
If the Demand is P = 100 - 4Q and the Supply is P=6Q What is the TS - ANSWER-500
If the Demand is P = 100 - 4Q and the Supply is P=6Q If the price was set by the government at $80 would this be a Price Floor - ANSWER-True
If the Demand is P = 100 - 4Q and the Supply is P=6Q If the price was set by the government at $80 would this be a would this result in a Surplus or a Shortage - ANSWER-Surplus
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