43. The key condition for equilibrium to occur is
A. The demand cure equals the supply curve B. Quantity demanded equals quantity
supplied C. Price equals quantity D. Demand for one good equals demand for all other
goods
44. When there is a shortage of 1,000 units of a particular good
A. The price of the good will rise B. The price of the good will fall C. The quantity
demanded of the good will equal 1,000 units D. There will be no change in the price of
the good
45 A ---- causes the equilibrium price to ---- and equilibrium quantity to ----
A. Decrease in supply; rise; fall B. Decrease in demand; Fall; rise C. Increase in supply;
rise; rise D. Increase in demand; rise; fall
46. If equilibrium price increases while equilibrium quantity decreases, then we know
that
A. Market demand has increased B. Market demand has decreased C. Market supply
has increased D. Market supply has decreased
47. An increase in supply and a decrease in demand occur in a market. What happens to
the equilibrium price and quantity?
A. The equilibrium price decreases; the change in equilibrium quantity is uncertain
B. The equilibrium price decreases; the equilibrium quantity increases
C. Equilibrium price increases; equilibrium quantity change is uncertain
D. Equilibrium price increases; equilibrium quantity decreases
48. A technological innovation in the production of golf balls increases ---- causing
price to ---- and the
A. Supply ;fall; quantity demanded to increase B. The quantity supplied; fall; quantity
demanded to increase C. Supply; rise; demand to increase D. Supply; fall; demand
to increase
CHAPTER 10-COSTS & PROFIT MAXIMIZATION UNDER COMPETITION
49. Which of the following best describes a competitive industry?
A. Its firms sell similar products and have little control over their prices; there are many
buyers and sellers and each is relatively small compared with the overall market
B. its firms sell similar products and have direct control over their prices; there are many
buyers and sellers and each is relatively small compared with the overall market
C. Its firms have little control over the price of their product; the demand curve for each
firm's product is downward sloping; there are many firms
D. Its firms sell differentiated products and there are few potential sellers. They have
little control over the price of their product; there are many relatively small buyers
