QUIZ CHAPTER 2
Economics 323 Microeconomic Theory
-1-
Questions
1. Excess demand is the extent that
a. quantity demanded exceeds quantity supplied
b. quantity supplied exceeds quantity demanded
c. the price ceiling is above the equilibrium price
d. the price ceiling is below the equilibrium price
e. the price floor is above the equilibrium price
2. If a price floor exceeds the equilibrium price, there will be
a. excess demand
b. excess supply
c. satisfied suppliers
d. dissatisfied consumers
e. both a. and d.
3. If demand is perfectly elastic, an increase in supply will cause
a. quantity and price to both increase
b. quantity and price to both decrease
c. quantity to increase and price to decrease
d. quantity to decrease and price to increase
e. quantity to increase and price to stay the same
4. An increase in population will cause
a. demand to increase
b. demand to decrease
c. supply to increase
d. supply to decrease
e. both a. and c.
5. If income rises, the demand curve will
a. shift right
b. shift left
c. stay the same since only price affects it
d. cannot tell which way demand shifts with the information given
e. become identical to the supply curve
