Supply and Demand in Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. If a butter manufacturer raises prices by 10% and the quantity of butter demanded by consumers falls 20%, this would be an example of _____.

Question 2 2. Why might a company have a perfectly inelastic supply?

Question 3 3. If a shoe store was running a big sale over the weekend, what would they be hoping to do?

Question 4 4. Why does internet piracy cause the supply curve to shift to the left?

Question 5 5. Which of the following BEST describes the intersection between supply and demand?

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Question 6 6. When demand for a product is greater than supply, a _____ exists and there is _____ pressure on prices.

Question 7 7. How is a supply and demand graph affected by a supply surplus?

Question 8 8. Which of the following statements is TRUE?

Question 9 9. A movement along the supply curve is caused by:

Question 10 10. Cross price elasticity of demand is equal to the percentage change in quantity demanded for Product A, divided by:

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Question 11 11. _____ refers to the various quantities offered for sale at various prices.

Question 12 12. All of the following can cause demand to shift, EXCEPT:

Question 13 13. What are subsidies?

Question 14 14. Which of the following is NOT an inelastic demand for a product?

Question 15 15. If a seller knows that the demand for his good or service is inelastic, then what would they most likely do?

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Question 16 16. A binding price floor is _____ the market equilibrium point.

Question 17 17. Why are product shortages normally a bad thing for economic markets?

Question 18 18. How is price elasticity of demand measured?

Question 19 19. If a new clothing brand becomes more popular because some recent movie stars endorsed the clothing line, how will it affect the market equilibrium for the clothing brand?

Question 20 20. On a normal demand curve, if we know an individual will demand five units of a good when the good is priced at $5, what statement is MOST LIKELY true if the price of the good changes to $4?

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Question 21 21. Over the course of a summer, New Hampshire experiences a shortage of potatoes. How will the supply and demand graph for potatoes be affected in this state?

Question 22 22. A supply and demand chart or schedule is the _____

Question 23 23. Why are surpluses and shortages bad?

Question 24 24. Which of the following would likely cause an increase in demand for a good?

Question 25 25. 'All else constant' when discussing the relationship between price and quantity demanded means we should not consider other potential shift factors of demand such as what?

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Question 26 26. What is the term for economic output lost due to a price floor or ceiling?

Question 27 27. If a 10% change in price leads to a 30% change in the quantity demanded, then what is the elasticity?

Question 28 28. According to income elasticity of demand, which of the following is a normal good?

Question 29 29. If the supply curve shifts to the left, what most likely happened?

Question 30 30. Bob is looking for a job, but he lacks the credentials to get a specialized job with a high starting salary. It is likely he will have to start working in an entry level position. Which of the following would benefit Bob in this scenario?

Supply and Demand in Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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