Assignment Essay

1243 WordsFeb 12, 20155 Pages
SAMPLE PAPER Multiple-Choice Questions 1. If a market is in equilibrium, then a. demand curves and supply curves are the same b. at the equilibrium price, quantity demanded is equal to quantity supplied c. the short-run quantities of supply and demand equal the long-run quantities of supply and demand d. the short-run equilibrium price equals the long-run equilibrium price e. all demanders receive the goods they want, and all suppliers sell the goods they want 2. If excess demand exists in a market, then a. excess supply will emerge to absorb the excess demand b. the quantity supplied is less than the quantity demanded c. the quantity demanded is less than the quantity supplied d. the equilibrium price will fall e. the price will fall 3. An increase in demand causes a. an increase in supply as new firms enter the market b. an increase in price and an increase in supply c. an increase in price and an increase in the quantity supplied d. a decrease in demand in the future e. a decrease in price and an increase in the quantity supplied 4. If supply increases and demand does not change, then price a. as well as quantities demanded and supplied will increase b. will decrease, and quantity demanded and supplied will increase c. will decrease, and quantity demanded and supplied will decrease d. and quantity demanded remain unchanged e. remains unchanged, but both quantities demanded and supplied will decrease 5. If, at a specific price, quantity demanded is greater than the quantity supplied, then price will a. increase until the excess supply is eliminated b. decrease until the excess supply is eliminated c. increase until the excess demand is eliminated d. remain unchanged, and quantity demanded will decrease e. decrease, and quantity supplied will increase 6.

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