Which of the following events would increase the quantity supplied of newsprint (newspapers)?

An increase in the price of newsprint

Which is most likely to result in a shift to the right in the demand curve for orange juice?

Expectations of higher future income among juice drinkers

Which results in a definite decrease in price, and an uncertain change in demand:

Demand shifting left, Supply shifting right

Which will occur if a legal price floor is placed on a good below its freemarket equilibrium?

The equilibrium price will ration the good.

According to the law of supply, if the market price of water bottles increases, ceteris paribus

the quantity supplied of water bottles would increase

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AP Economics Review Unit 2

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AP Microeconomics Review Unit 2

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Questions 10

Answers

1
A store raises prices 20% and total rev. rises 10%, its product demand in this price range is
Inelastic
Elastic
Perfectly inelastic
Perfectly elastic
2
Which of the following events would increase the quantity supplied of newsprint (newspapers)?
A decrease in the price of newsprint
A decrease in the price of wood pulp, used to make newsprint
A decrease in the number of firms manufacturing newsprint
An increase in the price of newsprint
3
Frank's income increases & he purchases more ice cream and less popsicles. For Frank, popcicles
Are a complementary good with ice cream
Are a joint product
Are a normal good
Are an inferior good
4
Which is most likely to result in a shift to the right in the demand curve for orange juice?
A decrease in price of Tang (substitute for orange juice)
A bumper crop of oranges in Florida
Expectations of higher future income among juice drinkers
Expectations of lower future prices for orange juice
5
Which results in a definite decrease in price, and an uncertain change in demand:
Demand staying the same, Supply shifting right
Demand shifting left, Supply shifting right
Demand shifting left, Supply shifting left
Demand shifting left, Supply staying the same
6
Which will occur if a legal price floor is placed on a good below its freemarket equilibrium?
Surpluses will develop.
Shortages will develop.
Underground markets will develop.
The equilibrium price will ration the good.
7
If an excise tax is imposed on a product, how do consumer surplus and producer surplus change?
Consumer surplus decreases, producer surplus stays the same
Consumer surplus stays the same, producer surplus increases
Consumer surplus decreases, producer surplus increases
Both decrease
8
Which of the following is likely to have the most elastic demand?
Sprite
Life-sustaining pills
A good with a vertical demand curve
All types of soda pop
9
According to the law of supply, if the market price of water bottles increases, ceteris paribus
the quantity supplied of water bottles would decrease
the quantity supplied of water bottles would increase
the demand for water bottles would decrease
the supply of water bottles would decrease
10
If the government established a quota of 1000 in this market, the quota rent would be
$4
$6
$2
$8

AP Economics Review Unit 2 Flashcards | StudBud