Survey of Economics 9th Edition by Irvin B.Tucker – Test Bank

1. ​ A decrease in demand with the supply held constant leads to:

  a.  ​an increased equilibrium price and an increased equilibrium quantity.

  b.  ​a decreased equilibrium price and a decreased equilibrium quantity.

  c.  ​a decreased equilibrium price and an increased equilibrium quantity.

  d.  ​ an increased equilibrium price and a decreased equilibrium quantity.

ANSWER:   b

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   ECON.16.4.2 – Indicate the effect of a change in a demand determinant on the demand curve for a good.

NATIONAL STANDARDS:   United States – Analytic – BB-Legal

TOPICS:   Changes in Market Equilibrium

KEYWORDS:   Knowledge

2. Suppose that X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X?​

  a.  Equilibrium price and quantity both decline.

  b.  ​Equilibrium price and quantity both rise.

  c.  ​Equilibrium price declines, and equilibrium quantity rises.

  d.  ​Equilibrium price rises, and equilibrium quantity falls.

ANSWER:   b

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   ECON.16.4.2 – Indicate the effect of a change in a demand determinant on the demand curve for a good.

NATIONAL STANDARDS:   United States – Analytic – BB-Legal

TOPICS:   Changes in Market Equilibrium

KEYWORDS:   Comprehension

3. If the cost of producing a good rises for sellers, then how will this affect the market equilibrium for that good?

  a.  ​Price will rise and quantity will fall.

  b.  ​Price will fall and quantity will rise.

  c.  ​Price and quantity will both rise.

  d.  ​Price and quantity will both fall.

ANSWER:   a

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   ECON.16.4.1 – Indicate the effect of a change in a supply determinant on the supply curve of a good.

NATIONAL STANDARDS:   United States – Analytic – BB-Legal

TOPICS:   Changes in Market Equilibrium

KEYWORDS:   Comprehension

4. If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?

  a.  ​Price will rise and quantity will fall.

  b.  ​Price will fall and quantity will rise.

  c.  ​Price and quantity will both rise.

  d.  ​Price and quantity will both fall.

ANSWER:   d

POINTS:   1

DIFFICULTY:   Easy

LEARNING OBJECTIVES:   ECON.16.4.2 – Indicate the effect of a change in a demand determinant on the demand curve for a good.

NATIONAL STANDARDS:   United States – Analytic – BB-Legal

TOPICS:   Changes in Market Equilibrium

KEYWORDS:   Comprehension

5. Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town had been steady at $600, but then the college expanded enrollment from 10,000 to 12,000. Suddenly there is a shortage of rental housing at the prevailing price of $600. Which of the following is most likely to be true?

  a.  ​The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and more rental units available on the market.

  b.  ​The shortage occurred because supply increased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.

  c.  ​The shortage occurred because demand decreased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.

  d.  ​The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and fewer rental units available on the market.

ANSWER:   a

POINTS:   1

DIFFICULTY:   Moderate

LEARNING OBJECTIVES:   ECON.16.4.2 – Indicate the effect of a change in a demand determinant on the demand curve for a good.

NATIONAL STANDARDS:   United States – Reflective Thinking

TOPICS:   Changes in Market Equilibrium

KEYWORDS:   Application