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Econ

This document contains 10 multiple choice questions about microeconomics concepts related to markets, demand and supply. It asks the reader to draw demand and supply graphs to illustrate equilibrium price and quantity under different scenarios, such as the price of inputs changing or a good becoming more or less fashionable. It also contains questions about consumer and producer surplus, normal vs inferior goods, substitutes vs complements, and the impact of government-imposed minimum or maximum prices on market equilibrium.

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Cherizza Ochotorena
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207 views3 pages

Econ

This document contains 10 multiple choice questions about microeconomics concepts related to markets, demand and supply. It asks the reader to draw demand and supply graphs to illustrate equilibrium price and quantity under different scenarios, such as the price of inputs changing or a good becoming more or less fashionable. It also contains questions about consumer and producer surplus, normal vs inferior goods, substitutes vs complements, and the impact of government-imposed minimum or maximum prices on market equilibrium.

Uploaded by

Cherizza Ochotorena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Questions Microeconomics (with answers)

1a Markets, demand and supply

01 Price and quantity 1

Price Demand Supply


0 100 0
1 80 30
2 60 60
3 40 90
4 20 120
5 0 150
 Draw demand and supply using a graph.
 Describe the situation if
 Price = 1
 Price = 4

02 Price and quantity 2

Market for chocolate


Price
Supply

P*

Demand

Quantity
Q*

What happens to equilibrium price P* and equilibrium quantity Q* if


 the price of cocoa falls;
 people become more health conscious and consume less calories;
 both the price of cacao falls and people become more health conscious and con-
sume less calories?

03 Price and quantity 3

Demand = 2200 - 200P (P = Price)


Supply = 800 + 500P

Calculate the equilibrium price and the equilibrium quantity.

QMICR1.DOC Page 1 (of 3) 1a Markets, demand and supply 2016-11-26


04 Movements along the demand curve vs shifts in demand

True or false? "If the price of a good falls, demand increases."

05 Shifts in demand and in supply

Answer these questions in the cases , ,  and :


 Is supply or demand affected?
 Is supply or demand increasing or decreasing?
 What happens to the equilibrium price and to the equilibrium quantity?

 The good becomes fashionable.


 Input prices fall.
 Income rises (normal good).
 Higher consumption taxes are introduced.

06 Consumer and producer surplus

Determine the consumer and the producer surplus:


Price
Supply

P*

Demand

Quantity
Q*

07 Normal and inferior goods

Price Market for good X


Supply

P*

Demand

Quantity
Q*

Now incomes fall. What happens to the market for good X if


 X is a normal good;
 X is an inferior good?
Use graphs to answer these questions.

QMICR1.DOC Page 2 (of 3) 1a Markets, demand and supply 2016-11-26


08 Substitutes and complements

Good A and good B are related to each other, either being substitutes or comple-
ments. Now the price of good B rises. Illustrate the impact on the market for good A
(with graphs) if
 A and B are substitutes;
 A and B are complements.

09 Minimum price

Price Market for milk


Supply

P*

Demand

Quantity
Q*
The government imposes a minimum price. Illustrate the impact on the market for milk.

10 Maximum price

Price Market for housing


Supply

P*

Demand

Quantity
Q*
The government imposes a maximum price. Illustrate the impact on the market for
housing.

To 1b Markets, demand and supply (Multiple choice)

 Answers. Click here!

QMICR1.DOC Page 3 (of 3) 1a Markets, demand and supply 2016-11-26

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