Supply and Demand Test VERSION 1

Which of the following demand curves is the most ELASTIC?

• Graph a

• Graph b

• Graph c

• Graph d

At a price of $1.50, how many units will be supplied?

• 25

• 50

• 75

• 100

• None of the above

If a government were to intervene in a market with a price ceiling, what would likely occur?

• The demand for the item would exceed its supply.

• The government would intervene later with a price floor.

• The supply of the item would exceed its demand

• The demand for the item would equal its supply

If the price of beef is above the equilibrium price, then which of the following will be a true statement?

• There will be an excess supply of beef, and the price of beef should fall.

• There will be an excess demand for beef, and the price of beef should increase.

• There will be an excess supply of beef, and the price of beef should increase.

• There will be an excess demand for beef, and the price of beef should fall.

Choose the graph (A, B, C, or D) below that corresponds to a government removal of a subsidy to the manufacturers of printers.

• Graph a

• Graph b

• Graph c

• Graph d

Choose the graph (A, B, C, or D) below that corresponds to an increase in the population of the U.S.

• Graph a

• Graph b

• Graph c

• Graph d

Choose the graph (A, B, C, or D) from below that corresponds to a tax on the production of printers.

• Graph a

• Graph b

• Graph c

• Graph d

Choose the graph (A, B, C, or D) from below that corresponds to an increase in the price of COMPUTERS.

• Graph a

• Graph b

• Graph c

• Graph d

• Not enough information

Market entry helps explain why the supply of a good

• increases as price increase

• decreases as quantity decrease

• decreases as price increase

• increases as quantity increases

• none of the above

Which of the following graphs below represents a price ceiling?

• Graph a

• Graph b

• Graph c

• Graph d