Economics Chapter 3 Supply and Demand Practice Quiz

Q1. In economics, the demand for a good refers to the amount of the good that people:

• would like to have if the good were free.
• will buy at various prices.
• need to achieve a minimum standard of living.
• will buy at alternative income levels.

Q2. Refer to Figure 3-1. Using the graph above and beginning on D1, a shift to D2 would indicate a(n):

• increase in quantity demanded.
• decrease in quantity demanded.
• increase in demand.
• decrease in demand.

Q3. Refer to Figure 3-3. A change from Point A to Point B represents a(n):

• increase in supply.
• decrease in supply.
• increase in quantity supplied.
• decrease in quantity supplied.

Q4. If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that:

• the price of Good Y will increase.
• Goods X and Y are normal goods.
• Goods X and Y are substitute goods.
• Goods X and Y are complement goods.

Q5. According to the table and graph above, if the price fell from $4 to $3 what will be the new quantity demanded if the demand curve remains linear after the shift of the demand curve to the left? 30 (with margin: 0) and 0 (with margin: 0)

Q6. Referring to the graph above which price would result in a surplus of 20 million pounds of coffee per month? (Enter a numerical answer only with no “$” symbol) 8 (with margin: 0) and 0 (with margin: 0)

Q7. According to panel (C), where would the equilibrium quantity settle after the demand and supply curves move from D₁ to D₂ and S₁ to S₂? 25 (with margin: 0) and 0 (with margin: 0)

Q8. According to the graphs above, which of the panels represent the case where the price of a complementary good has increased?

• Panel A
• Panel B
• Panel C
• Panel D

Q9. Which of the following could explain the shift of the supply curve depicted above from S₁ to S₂?

• A decline in the number of consumers purchasing this product.
• A rise in the price of a substitute good.
• Firms exiting the industry.
• A fall in the cost of production.

Q10. Assume that the table above represents the market for apartments. What would be the excess demand for apartments if the government imposed a price ceiling of $800? (Only provide a numerical answer with no comma) 0 (with margin: 0)