if the demand and supply of steak both shift left

Question 12

if the demand and supply of steak both shift left,

price falls, quantity change is uncertain

price change is uncertain but quantity falls

price rises, quantity change is uncertain

price change is uncertain but quantity rises

Question 13

In the shoe market, if the cost of leather for shoes falls and household incomes falls (double shift)

price of shoes falls, quantity change is uncertain

price of shoes rises, quantity of shoes rises

both price and quantity of shoes fall

price of shoes is uncertain, wuantity of shoes falls

Question 14

if the price rises and quantity falls for shoes, the simplest reason is

supply of shoes shifted right

demand for shoes shifted right

demand for shoes shifted left

supply of shoes shifted left

Question 15

A single seller in a competitive market sees

perfectly elastic demand

perfectly inelastic demand

perfectly elastic supply

perfectly inelastic supply

Question 16

if the price of pizza rises from $10 to $11 and pizza purchases fall from 20 to 15 pizzas, the elasticity of demand is

-1/2

-3

-1

-5

Question 17

over time, the elasticities of both demand and supply become

more inelastic

mnore elastic

both elasticities become negative

unit elastic

Question 18

if the income elasticity of demand is 5, this means

if income rises 5%, quantity demanded falls 1%

if income rises 5%, quantity demanded rises 1%

for a 1% rise in income, quantity demanded falls 5%

for a 1% increase in income, quantity demanded rises 5%

Question 19

elastic demand means

the good is fixed in production

the good is difficult to produce

the good has many substitutes

the elasticity of demand is positive

Question 20

producer surplus is most closely related to

losses

marginal benefit

savings

profit

Question 21

from a stores perspective, it should provide enough security

until the security deters customers from going to the store

until the cost of additional security equals the additional losses

until theft is zero

until the total cost of security equal the total revenues of the store

Question 22

a price ceiling refers to which?

prices are not allowed to rise

it is related to agricultural price supports

regulations will reduce inefficiencies

taxes will raise the price

Question 23

utility in economics refers to

the marginal benefit minus marginal cost of a good

the highest valued use for a good

the satisfaction from using a good

the consumer surplus gained from the good

Question 24

the consumer optimum is reached when after using up the budget,

the marginal utility of all goods are equal

the marginal utility per dollar of all goods are equal

we minimize the total utility grom all goods

price equals the marginal utility for all goods