HCM 402 Module 3 Quiz

The ___________ is the only price where quantity demanded is equal to quantity supplied. equilibrium price horizontal axis intercept vertical axis intercept market price

When quantity demanded decreases in response to a change in price: the demand curve shifts to the right. the demand curve shifts to the left. there is a movement down along the demand curve. there is a movement up along the demand curve.

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect: Andy's demand for pizza to increase. Andy's demand for pizza to decrease. Andy's quantity of pizza demanded to decrease. Andy's demand for beer to increase.

Any given demand or supply curve is based on the ceteris paribus assumption that ___________________. everything is variable. all else is held equal no one knows which variables will change and which will remain constant. what is true for the individual is not necessarily true for the whole.

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________ excess supply excess demand ceteris paribus a price ceiling

If new manufacturers enter the computer industry, then (ceteris paribus): the supply curve shifts to the left. the supply curve shifts to the right. the demand curve shifts to the left. some established manufacturers must exit the industry.

______________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling. Rent controls Price ceilings Price floors Subsidies

According to the law of supply: there is a direct relationship between price and the quantity supplied. there is an inverse relationship between price and the quantity supplied. there is a direct relationship between price and quantity demanded. there is an inverse relationship between price and quantity demanded.

The nature of demand indicates that as the price of a good increases: suppliers wish to sell less of it. more of it is produced. more of it is desired. buyers desire to purchase less of it.

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of: the supply curve. the demand curve, as consumers try to economize because of the shortage. both the supply and demand curves. the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price.

The term "ceteris paribus" means that: everything is variable. all variables except those specified are constant. no one knows which variables will change and which will remain constant. what is true for the individual is not necessarily true for the whole.

A demand curve shows the relationship between price and _________________ on a graph. quantity demanded quantity produced economies of scale costs

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right. prices rise equilibrium is achieved costs of production fall there is a population increase

If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm's profits will increase. higher demand lower costs of production equilibrium a shift in demand