FTU-ECON 202 Quiz 2 12/4/2019

Each Question is Worth 1 Point
Name___________________________________
MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

1) A shortage occurs when: 1)

A) quantity demanded exceeds quantity supplied.
B) demand is greater than supply.
C) quantity supplied exceeds quantity demanded.
D) the equilibrium price is too high.

2) In a free market, if the price of a good is below the equilibrium price, then; 2)
A) suppliers, dissatisfied with growing inventories, will lower the price.
B) suppliers, dissatisfied with growing inventories, will raise the price.
C) demanders, to acquire the good, will bid the price higher.
D) government needs to set a higher price.

3) If the price of cheese falls by 1 percent and the quantity demanded rises by 3 percent, 3)
then the price elasticity of demand for cheese is equal to:
A) 3. B) 0.333. C) 0.30. D) 30.

1
4) 4)
Figure 1

Refer to Figure 1 above. The equilibrium price and quantity for this market are:
A) $2; 8. B) $6; 4. C) $4; 6. D) $8; 6.

5) Refer to Figure 1 above. At a price of $9, the market will experience ________ in the 5)
amount of ________ units.
A) a shortage; 5 units B) a surplus; 5 units
C) equilibrium; 4 units D) a surplus; 7 units