Managerial EconomicsChapter 2.docx

1、Managerial EconomicsChapter 2Chapter 2Student: _1.If the price of a complement decreases, all else equal,A.Quantity demanded will decrease.B.Quantity supplied will decrease.C.Demand will increase.D.Demand will decrease.E.Supply will increase.2.The market demand curve for a given good shifts when the

2、re is a change in any of the following factors EXCEPTA.The price of the good.B.The level of consumers income.C.The prices of goods related in consumption.D.The tastes of consumers.3.Which of the following would lead to a DECREASE in the demand for tennis balls?A.An increase in the price of tennis ba

3、lls.B.A decrease in the price of tennis rackets.C.An increase in the cost of producing tennis balls.D.A decrease in average household income when tennis balls are a normal good.E.None of the above.4.If input prices increase, all else equal,A.Quantity supplied will decrease.B.Supply will increase.C.S

4、upply will decrease.D.Demand will decrease.5.Which of the following would increase the supply of corn?A.An increase in the price of pesticides.B.A decrease in the demand for corn.C.A fall in the price of corn.D.A severe drought in the corn belt.E.A decrease in the price of wheat.6.Which of the follo

5、wing will cause a change in quantity supplied?A.A change in input prices.B.Technological change.C.A change in the number of firms in the market.D.A change in the market price of the good.Use the following general linear demand relation to answer questions 9 through 13:where M is income and is the pr

6、ice of a related good, R.7.From this relation it is apparent that the good is:A.An inferior good.B.A substitute for good R.C.A normal good.D.A complement for good R.E.Both c and d.8.If M = $15,000 and = $20, the demand function isA.B.C.D.E.9.If M = $15,000 and = $20 and the supply function is , equi

7、librium price and quantity are, respectively,A.P = $55 and Q = 195.B.P = $6 and Q = 38.C.P = $12 and Q = 200.D.P = $50 and Q = 170.E.P = $40 and Q = 250.10.If M = $15,000 and = $20 and the supply function is , then, when the price of the good is $60,A.There is a shortage of 60 units of the good.B.Th

8、ere is equilibrium in the market.C.There is a surplus of 60 units of the good.D.The quantities demanded and supplied are indeterminate.11.If M = $15,000 and = $20 and the supply function is , then, when the price of the good is $40,A.There is equilibrium in the market.B.There is a shortage of 180 un

9、its of the good.C.There is a surplus of 180 units of the good.D.There is a shortage of 80 units of the good.Questions 12 14 refer to the following figure:12.If price is $16 there isA.A shortage of 250 units.B.A surplus of 250 units.C.A shortage of 125 units.D.A surplus of 125 units.E.Equilibrium in

10、the market.13.If the price is $6, the resultingA.Surplus will lead to a fall in price.B.Shortage will lead to a fall in price.C.Surplus will lead to a rise in price.D.Shortage will lead to a rise in price.14.If price is $8,A.There will be a surplus of 150 units.B.There will be a shortage of 150 unit

11、s.C.Price will fall.D.Shortage of 75 units.E.Surplus of 75 units.15.So long as the actual market price exceeds the equilibrium market price, there will beA.Downward pressure on the price.B.Upward pressure on the price.C.Excess demand.D.A shortage.16.Increases in the wage rates of coal miners and dec

12、reases in the price of natural gas would cause the price of coal toA.Rise, fall, or remain unchanged depending on the magnitude of the changes, but the equilibrium quantity of coal would fall.B.Rise, fall, or remain unchanged depending on the magnitude of the changes, but the equilibrium quantity of

13、 coal would increase.C.Rise, but the equilibrium quantity of coal would rise or fall depending on the magnitude of the changes.D.Rise, but the equilibrium quantity of coal would fall.E.Fall, but the equilibrium quantity of coal would rise or fall depending on the magnitude of the changes.Use the fol

14、lowing figure to answer the next 4 questions:17.In the figure, the equilibrium price and quantity areA.P = $6 and Q = 800.B.P = $4 and Q = 300.C.P = $4 and Q = 400.D.P = $6 and Q = 300.E.P = $7 and Q = 800.18.Let demand remain constant at D; an increase in wages causes firms to be willing and able t

15、o sell 150 fewer units at each price than they were before the wage increase.A.The new equilibrium price and quantity will be P = $6 and Q = 150.B.The new equilibrium price and quantity will be P = $6 and Q = 400.C.The new equilibrium price and quantity will be P = $7 and Q = 250.D.The new equilibri

16、um price and quantity will be P = $8 and Q = 300.19.Let supply remain constant at S; a decrease in income causes consumers to be willing and able to purchase 150 fewer units at each price than they were previously.A.The new equilibrium price and quantity will be P = $6 and Q = 150.B.The new equilibr

17、ium price and quantity will be P = $5 and Q = 150.C.The new equilibrium price and quantity will be P = $7 and Q = 250.D.The new equilibrium price and quantity will be P = $5 and Q = 200.20.Let supply remain constant at S; an increase in the price of a substitute good causes consumers to be willing a

18、nd able to buy 150 more units of the good at each price in the list than they were when demand was D. Which of the following statements is (are) true?A.At the original equilibrium price there will be a shortage of 150.B.At the original equilibrium price there will be a surplus of 150.C.At the new eq

19、uilibrium P = $6 and Q = 450.D.At the new equilibrium P = $7 and Q = 400.E.Both a and d.Use the following demand and supply functions to answer the next three questions.Demand: .Supply: .21.Equilibrium price and output areA.P = $7 and Q = 480.B.P = $10 and Q = 300.C.P = $20 and Q = 150.D.P = $100 an

20、d Q = 5,300.E.None of the above.22.If the price is currently $11, there is aA.Surplus of 110 units.B.Shortage of 240 units.C.Surplus of 350 units.D.Shortage of 700 units.E.None of the above.23.Let supply remain constant; an increase in income causes consumers to be willing and able to buy 220 more u

21、nits at each price than they were previously. The new equilibrium price and quantity areA.P = $10 and Q = 520.B.P = $12 and Q = 400.C.P = $10 and Q = 80.D.P = $15 and Q = 600.E.None of the above.Use the following general linear demand relation to answer questions 36 through 41:where P is the price o

22、f good X, M is income, and is the price of a related good, R.24.Income is $80,000, and the price of the related good is $40. Also let consumers tastes change so that consumers now demand 100 more units at each price. When the price of the good is $50, how many units of the good are demanded?A.70.B.2

23、00.C.220.D.100.E.None of the above.25.If a demand curve goes through the point P = $6 and = 400, thenA.$6 is the highest price consumers will pay for 400 units.B.$6 is the lowest price consumers can be charged to induce them to buy 400 units.C.400 units are the most consumers will buy if price is $6

24、.D.Consumers will buy more than 400 if price is $6.E.Both a and c.26.If a supply curve goes through the point P = $10 and = 320, thenA.$10 is the highest price that will induce firms to supply 320 units.B.$10 is the lowest price that will induce firms to supply 320 units.C.At a price higher than $10

25、 there will be a surplus.D.At a price lower than $10 there will be a shortage.E.Both c and d.27.In the general demand function, when a good is a normal good, the sign on the slope parameter of _ is _ (positive, negative, zero).28.In the general demand function, if goods X and R are substitutes, the

26、sign on the slope parameter of the _ good is _ (positive, negative, zero).29.The demand function slopes _ because of the law of _ which states that, other things equal, price and quantity demanded are _ related.30.If income increases, the demand for a(n) _ good will decrease.31.The general demand fu

27、nction for good A is where = quantity demanded of good A per month, P = the price of good A, M = average household income, = price of related good B, = a consumer taste index, Pe = price consumers expect to pay next month for good A, and N = number of buyers in market for good.a. Good A is a(n) _ go

28、od because the slope parameter on _ is _.b. Goods A and B are _ because the slope parameter on _ is _.c. When P = $6, M = $40,000, = $20, = 8, Pe = $2, and N = 10,000, quantity demanded of good A is _ units per month.Chapter 2 Key1.If the price of a complement decreases, all else equal,a.Quantity de

29、manded will decrease.b.Quantity supplied will decrease.C.Demand will increase.d.Demand will decrease.e.Supply will increase.Thomas - Chapter 02 #12.The market demand curve for a given good shifts when there is a change in any of the following factors EXCEPTA.The price of the good.b.The level of consumers income.c.The prices of goods related in consumption.d.The tastes of consumers.Thomas - Chapter 02 #23.Which of the following would lead to a DECREASE in the demand for tennis balls