4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

Maria Pia Velasquez 1

My Institution Courses Community Services

H Content Unit 2 Demand & Supply Chapter 3

Review Test Submission: Test 2 Supply and Demand Chapter 3

Review Test Submission: Test 2 Supply and Demand

Chapter 3

User Maria Pia Velasquez

Course ECO 424-1 Managerial Economics - SPRING 2021
Test Test 2 Supply and Demand Chapter 3
Started 4/10/21 10:41 PM
Submitted 4/10/21 11:23 PM
Due Date 4/13/21 11:59 PM
Status Completed
Attempt Score 95 out of 100 points
Time Elapsed 41 minutes out of 1 hour
Results Displayed All Answers, Submitted Answers, Feedback, Incorrectly Answered Questions

Question 1 5 out of 5 points

Which of the following will not cause a short-run shift in the supply curve?
Selected Answer: A. a change in the price of the product
Answers: A. a change in the price of the product

B. a change in the cost of resources

C. a change in the number of sellers

D. a change in future expectations

Question 2 5 out of 5 points

Which of the following applies most generally to supply in the long run?
Selected C. Producers are able to make change in all their factors of production.
Answer:
Answers: A. All original producers will leave the market.

B. Average total cost must decline.

C. Producers are able to make change in all their factors of production.

D.
Producers are only able to make change in their variable factors of
production.

https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 1/7
4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

Question 3 5 out of 5 points

Which of the following is not a determinant of and demand?

Selected Answer: A. tax
Answers: A. tax

B. income

C. future expectations

D. tastes and preferences

Question 4 5 out of 5 points

An increase in input prices will cause

Selected C.
Answer: supply to shift leftward, equilibrium price to rise, and equilibrium quantity to
fall.

Answers: A.
supply to shift leftward, equilibrium price to fall , and equilibrium quantity to
rise.

B.
supply to shift rightward, equilibrium price to fall, and equilibrium quantity
to rise.

C.
supply to shift leftward, equilibrium price to rise, and equilibrium quantity to
fall.

D.
supply to shift rightward, equilibrium price to rise, and equilibrium quantity
to fall.

Question 5 5 out of 5 points

The rationing function of price

Selected B. occurs when consumers change their tastes and preferences.
Answer:
Answers: A.
occurs when there is a movement of resources into or out of markets as a result of
changes in the equilibrium market price.

B. occurs when consumers change their tastes and preferences.

C. is also known as the guiding function of price.

D. occurs only when the market experiences severe shortages.

Question 6 5 out of 5 points

https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 2/7
4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

Which of the following could cause a long-run shift in demand as part of the "guiding function
of price"?
Selected Answer: D. an increase in price caused by a shift in supply
Answers: A. income shift caused by an economic recession

B. a change in tastes and preferences

C. an increase in number of buyers

D. an increase in price caused by a shift in supply

Question 7 5 out of 5 points

In the long run if there is a shortage in the market for a product, the guiding (allocation) function
of price can be expected to cause
Selected Answer: A. an increasing shift in the supply of the product.
Answers: A. an increasing shift in the supply of the product.

B. an increasing shift in the demand for the product.

C. a decreasing shift in the supply of the product.

D. a decreasing shift in the demand for the product.

Question 8 5 out of 5 points

All of the following are non-price determinants of demand except

Selected Answer: D. technology.
Answers: A. future expectations.

B. income.

C. tastes and preferences.

D. technology.

Question 9 5 out of 5 points

Which of the following would cause a decrease in the demand for fish?
Selected Answer: D. The price of chicken decreases.
Answers: A. The number of fishing boats decreases.

B. The price of fish increases.

C. The price of red meat increases.

D. The price of chicken decreases.

https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 3/7
4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

Question 10 5 out of 5 points

Which of the following refers to a shift in the demand curve?

Selected C. "This new advertising campaign should really increase our demand."
Answer:
Answers: A. "Let's drop our price to increase our demand."
B.
"If new sellers enter the market, the demand for the product is bound to
increase."

C. "This new advertising campaign should really increase our demand."

D. "We dare not raise our price because our demand will drop."

Question 11 0 out of 5 points

Which of the following would cause a short-run increase in the quantity supplied of personal
computers?
Selected Answer: C. The price of CPUs increases.
Answers: A. The price of software remains the same

B. The price of software increases.

C. The price of CPUs increases.

D. The number of PC manufacturers increases.

Question 12 5 out of 5 points

The guiding function of price is

Selected C.
Answer: a long-run function resulting in the movement of resources into or out of
markets.

Answers: A.
the use of price as a signal to guide government on the use of market
subsidies.

B.
the movement of price to clear the market of any shortages or surpluses.

C.
a long-run function resulting in the movement of resources into or out of
markets.

D.
the movement of price as a result of changes in the demand for a product.

Question 13 5 out of 5 points

Two goods are ________ if the quantity consumed of one increases when the price of the other
decreases.
https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 4/7
4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

Selected Answer: B. complementary

Answers: A. superior

B. complementary

C. normal

D. substitute

Question 14 5 out of 5 points

Which of the following is correct? The supply curve will shift when
Selected Answer: C. production technology and input prices change.
Answers: A. income, preferences, or the number of buyers change.

B. the number of sellers and the number of buyers change.

C. production technology and input prices change.

D. income, preferences, or production technology changes.

E. income, preferences, or the number of suppliers change.

Question 15 5 out of 5 points

Which of the following statements is not false?

Selected A.
Answer: An inrease in supply causes equilibrium price to fall and quantity to rise.

Answers: A.
An inrease in supply causes equilibrium price to fall and quantity to rise.

B.
An increase in supply causes equilibrium price to rise and quantity to rise.

C. A increase in demand causes equilibrium price and quantity to fall.

D. All the responses are true.

Question 16 5 out of 5 points

Which of the following indicates that there is a shortage in the market?

Selected Answer: B. Price is rising.
Answers: A. Price is falling.

B. Price is rising.

C. Demand is falling.

D. Demand is rising.

https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 5/7
4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

Question 17 5 out of 5 points

The "law" of demand can be best described by

Selected Answer: C. a fall in price will increase quantity demanded.
Answers: A. people will buy things that they enjoy.

B. if incomes rise, people will buy more.

C. a fall in price will increase quantity demanded.

D. a rise in price will cause shortages.

Question 18 5 out of 5 points

Which of the following can result in a decrease in the demand for I-Pods in the short run?
Selected Answer: B. a decrease in the population
Answers: A. a decrease in real household incomes

B. a decrease in the population

C. a decrease in the price of MP4s

D. All of the above

Question 19 5 out of 5 points

Which of the following best applies to the distinction between the "long run" and the "short
run"?
Selected A.
Answer: The rationing function of price is a short-run phenomenon whereas the guiding
function is a long-run phenomenon.

Answers: A.
The rationing function of price is a short-run phenomenon whereas the guiding
function is a long-run phenomenon.

B.
The short run is a period of approximately 1-6 months while the long run is any
time frame which is longer.

C.
In the short run, only new firms may enter, while in the long-run firms may either
enter or exit the market.

D. All of the above statements are correct.

Question 20 5 out of 5 points

How long is the "short-run" time period in the economic analysis of the market?
Selected B.
Answer:

https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 6/7
4/10/2021 Review Test Submission: Test 2 Supply and Demand Chapter 3 &...

total time in which sellers already in the market respond to changes in demand
and equilibrium price

Answers: A. total amount of time it takes original sellers to leave the market
B.
total time in which sellers already in the market respond to changes in demand
and equilibrium price

C. total amount of time it takes new sellers to enter the market

D. three months or one business quarter

Saturday, April 10, 2021 11:23:18 PM EST

← OK

https://ucci.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_347230_1&course_id=_8137_1&content_id=_270300_1&return… 7/7