# Microeconomics Study Set 46

## Quiz 2 :Supply and Demand

Question Type
An increase in the price of computer chips causes a decrease in the total revenue of computer chip manufacturers. The price elasticity of demand for computer chips is:
Free
Multiple Choice

C

Tags
Choose question tag
The price of baseball tickets increased by 5%, leading to a 3% decrease in the number of tickets sold. Given this specific situation, total expenditures on baseball tickets:
Free
Multiple Choice

C

Tags
Choose question tag
(Figure: Price Elasticity of Demand II) Which of the following statements is TRUE regarding the figure? ​ ​ I. The price elasticity of demand is ) II. The demand curve is perfectly inelastic. III. An increase in price has no effect on quantity demanded.
Free
Multiple Choice

C

Tags
Choose question tag
The supply curve of rubber balls is given by Q = 100P - 10. Which of the following is the equation for the inverse supply curve?
Multiple Choice
Tags
Choose question tag
Suppose that the demand curve for a new product can be expressed as QD = 900 - 3P. At what price is total expenditure maximized?
Multiple Choice
Tags
Choose question tag
Suppose that the market demand curve for sunflowers is a function of the price of sunflowers, the price of roses, and income. If the partial derivative of quantity demanded of sunflowers with respect to the price of roses is negative, sunflowers and roses are:
Multiple Choice
Tags
Choose question tag
Genetically modified soybean seed is an example of a new technology that has increased productivity. As a result, this new technology _____ production costs and _____ the supply of soybeans.
Multiple Choice
Tags
Choose question tag
The Internet has made learning to play a musical instrument easier than ever, with thousands of websites offering free music lessons. What happens in the market for musical instruments as a result of the availability of these free lessons?
Multiple Choice
Tags
Choose question tag
Suppose that the demand for a product is given by Q = 25 - 0.25P. If the product's price is $128 per unit, how many units will consumers be willing to buy? Multiple Choice Answer: Tags Choose question tag (Figure: The Market for Asparagus II) An excess supply of 3,000 pounds occurs at a price of: Multiple Choice Answer: Tags Choose question tag Suppose that the inverse demand curve for energy drinks can be expressed as . The price elasticity of demand at a quantity of 25 is: Multiple Choice Answer: Tags Choose question tag (Figure: Total Expenditures) As the price of the product rises from$0 to $40, what happens to total expenditures? Multiple Choice Answer: Tags Choose question tag Suppose a fall in consumer income drives down the demand for lobster while a record harvest increases supply. How would these changes affect the equilibrium price and quantity of lobsters? Multiple Choice Answer: Tags Choose question tag (Figure: Market Shifts) Suppose that the demand curve in both markets shifts out by the same distance. The change in price will be larger in _____, and the change in quantity will be larger in _____. Multiple Choice Answer: Tags Choose question tag The income elasticity of demand for dental services is 2.40, and the income elasticity of demand for nursing homes is 0.90. Based on these estimates, dental services are a(n) _____ and nursing home care is a(n) _____. Multiple Choice Answer: Tags Choose question tag Suppose that the demand and supply curves for a good are given by QD = 1,000/P and QS = 10P. What is happening in the market at a price of$2?
Multiple Choice
Tags
Choose question tag
(Figure: Market for Rubber Balls) According to the figure, what is the equation for the normal supply curve?
Multiple Choice
Tags
Choose question tag
Suppose that the market demand curve for cauliflower is a function of the price of cauliflower, the price of broccoli, and income. If the partial derivative of quantity demanded of cauliflower with respect to income is positive,:
Multiple Choice