Intermediate Microeconomics Review Questions with complete Solutions Graded A+
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Course
Microeconomics
Institution
Microeconomics
Intermediate Microeconomics Review Questions with complete Solutions Graded A+
When demand increases: - Answers the demand curve shifts to the right.
What will not cause demand for apples to increase or decrease? - Answers a reduction in the price of apples
If the price of crude oil increases an...
Intermediate Microeconomics Review Questions with complete Solutions Graded A+
When demand increases: - Answers the demand curve shifts to the right.
What will not cause demand for apples to increase or decrease? - Answers a reduction in the price of
apples
If the price of crude oil increases and the number of people who own cars falls: - Answers the
equilibrium price of gasoline will be uncertain and equilibrium quantity of gasoline will decrease.
If the price of crude oil decreases: - Answers the equilibrium price of gasoline will decrease and
equilibrium quantity of gasoline will increase.
If the supply curve is QS = 4P − 4, then the highest price at which no producer is willing to sell the good
(i.e. the supply choke price) is: - Answers 1.
If the demand curve is QD = 10 − 2P, then the lowest price at which no consumer is willing to buy the
good (i.e., the demand choke price) is: - Answers 5.
When the prevailing price is above the price where supply intersects demand: - Answers price falls
because there is a surplus, so producers cut prices to try to attract buyers.
Which of the following would cause an increase in the quantity demanded of pizza? - Answers an
increase in the supply of pizza
If demand increases and supply increases: - Answers equilibrium price will be uncertain and equilibrium
quantity will increase.
If supply decreases: - Answers equilibrium price increases and equilibrium quantity decreases.
If supply increases and demand decreases: - Answers equilibrium price will decrease and equilibrium
quantity will be uncertain.
If demand decreases: - Answers equilibrium price decreases and equilibrium quantity decreases.
If the inverse demand curve is P = 12 − 2QD and the inverse supply curve is P = 4QS, then the equilibrium
price and quantity are: - Answers Pe = 8; Qe = 2.
A decrease in supply: - Answers creates excess demand, causing equilibrium price to increase.
A decrease in demand: - Answers produces excess supply, causing equilibrium price to decrease.
The impact of an increase in demand on equilibrium price will be bigger when: - Answers supply is
steeper.
When the prevailing price is below the price where supply intersects demand: - Answers price rises
because a shortage, so buyers bid up the price.
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