Producer surplus is located

above the supply curve and below the price

The height of the supply curve represents

the marginal cost of production

A movement along a demand curve is caused by

a change in the price of the good

Why do demand curves have a negative slope?

People seek ways to satisfy their demand at lower cost

A farmer can produce soybeans and corn. If the price of soybeans rises,

The supply of corn will decrease

The height of the demand curve represents

the marginal value of a particular unit

Sam is willing to sell his house for $200,000. The market price of his home is $350,000.

His producer surplus is $150,000

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Supply and Demand Quick Quiz

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Supply and Demand

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Questions 15

Answers

1
Producer surplus is located
above the supply curve and below the price
below the supply curve and above the price
above the supply curve and above the price
below the demand curve and above the price
2
The height of the supply curve represents
the total benefit of production
the marginal cost of production
the marginal benefit of production
the total cost of production
3
If buyers expect the price of a good to rise in the future, they will
Supply will increase today
Quantity supplied will increase today
Quantity demanded will increase today
Demand will increase today
4
If income decreases, the demand for an inferior good
will increase
will decrease
will remain unchanged
5
A movement along a demand curve is caused by
a change in tastes and preferences
a change in the price of the good
a change in income
a movement in a supply curve
6
Why is the chef so mean?
Because he beat the eggs
All of the above
Because he whips the cream
Because he is from Hell's Kitchen
7
Why do demand curves have a negative slope?
People seek ways to satisfy their demand at lower cost
As prices rise, quantity demanded falls
That's just the way it is
As prices rise, quantity supplied falls
8
Which of the following would increase the demand for a normal good?
A fall in price of the good itself
A fall in income
Rise in price of substitute
Fall in price of substitute
9
Jay is willing to pay $30 for a book but the price is $40. What is his consumer surplus?
-$10
$30
$10
0
10
All of the following are supply shifters except
Taxes
Price of complementary goods
Cost of Inputs
Price of an alternative product
11
A tunafish lasagna was bought for $15 and can be resold for $0.01.How much of the cost is sunk?
$14.99
$0
$15
$0.01
12
A farmer can produce soybeans and corn. If the price of soybeans rises,
The supply of soybeans will decrease
The supply of soybeans will increase
The supply of corn will decrease
The supply of corn will increase
13
If the price of cereal rises, this will cause
An increase in demand for milk
A decrease in demand for milk
a shift in the demand curve for cereal
A mooo_vement along the demand curve for milk
14
The height of the demand curve represents
the total cost of all units
the marginal value of a particular unit
the total value of all units
the marginal cost of a particular unit
15
Sam is willing to sell his house for $200,000. The market price of his home is $350,000.
His producer surplus is $150,000
His consumer surplus is $150,000
His producer surplus is -$150,000
His producer surplus is 0

Supply and Demand Quick Quiz Flashcards | StudBud