Questions 31-45

The law of supply states that price and quantity supplied are a. inversely related, ceteris paribus. b. directly related, ceteris paribus. c. not related. d. fixed.

An advance in technology causes a. a rightward shift in the supply curve. b. a leftward shift in the supply curve. c. the supply curve to go from upward sloping to vertical. d. the supply curve to go from vertical to upward sloping.

Which of the following will not shift a supply curve? a. a change in the price of relevant resources b. a change in the good's own price c. a change in the number of sellers d. a change in per-unit costs brought about by a change in taxes.

At a price above the equilibrium price, there is a. a shortage. b. a surplus. c. excess demand. d. super-equilibrium. e. none of the above

At a price below the equilibrium price, there is a. a surplus. b. a shortage. c. excess supply. d. sub-equilibrium. e. none of the above

On a supply-and-demand diagram, equilibrium is found a. where the supply curve intercepts the vertical axis. b. where the demand curve intercepts the horizontal axis. c. where the demand and supply curves intersect. d. at every point on either curve

Refer to Exhibit 3-1. Equilibrium price and quantity are a. $2 and 250 units. b. $4 and 250 units. c. $2 and 150 units. d. $6 and 250 units. e. none of the above

Refer to Exhibit 3-1. At a price of $2 there is a a. shortage of 100 units. b. shortage of 200 units. c. shortage of 150 units. d. surplus of 200 units.. e. surplus of 150 units.

Refer to Exhibit 3-8. Equilibrium price and quantity are a. $3 and 25 units. b. $3 and 15 units. c. $5 and 15 units. d. $5 and 25 units. e. $1 and 25 units.

Refer to Exhibit 3-8. A price of $5 will result in a ___________________ in this market which will cause the price of the product to gravitate a. shortage; downward. b. shortage; upward. c. surplus; downward. d. surplus; upward.

Refer to Exhibit 3-8. A price of $1 will result in a ___________________ in this market which will cause the price of the product to gravitate a. shortage; downward. b. shortage; upward. c. surplus; downward. d. surplus; upward.

Refer to Exhibit 3-8. A shortage exists at any price below a. $5.00. b. $4.50. c. $4.00. d. $3.50. e. $3.00.

Refer to Exhibit 3-8. A surplus exists at any price above a. $2.00. b. $4.50. c. $4.00. d. $3.50. e. $3.00.

Which of the following pairs of goods would be most likely to be complements? a. butter and margarine. b. peanuts and peanut butter. c. DVD's and DVD players. d. hiking boots and tennis shoes. e. All of the above