Economics Take Home Quiz Answer Check. 4?

[gabrielo19]

I have a take home quiz and answered the questions and would like to check my answers

1,The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:
A. up, the quantity demanded also goes up.
B. up, the quantity demanded goes down.
C. down, the quantity demanded goes down.
D. down, the quantity demanded stays the same.

2. Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:
A. the law of demand is invalid.
B. despite the increase in price, quantity demanded rose due to some other factor changing.
C. this situation has nothing to do with the law of demand.
D. the demand for a college education is positively sloped.

3. If the price of movies on VHS rises while the price of movies on DVD remains the same, the law of demand predicts that consumers will:
A. substitute movies on VHS for movies on DVD.
B. substitute movies on DVD for movies on VHS.
C. buy only movies on VHS.
D. buy only movies on DVD.



4. Refer to the graph above. If consumers began purchasing more of this product due to a decrease in price, this would be shown by arrow:
A. A
B. B
C. C
D. D



5. Assume the graph above reflects demand in the automobile market. Which arrow best captures the impact of increased consumer income on the automobile market?
A. A
B. B
C. C
D. D

6. When applied to labor markets, the law of supply suggests that:
A. an increase in the wages earned by nurses will cause the quantity of nurses supplied to increase.
B. a decrease in the wages earned by nurses will cause the quantity of nurses supplied to increase.
C. an increase in the wages earned by nurses will cause the quantity of nurses demanded to increase.
D. a decrease in the wages earned by nurses will cause the quantity of nurses demanded to increase.



7. Refer to the graph above. The arrow that best shows an increase in supply is:
A. W
B. X
C. Y
D. Z

8. The more the current price exceeds the equilibrium price, the:
A. greater the resulting shortage will be.
B. smaller the resulting shortage will be.
C. greater the resulting surplus will be.
D. smaller the resulting surplus will be.

9. Suppose a market has an excess demand and price starts to rise. What will the rise in price cause?
A. A fall in both quantity supplied and quantity demanded.
B. A rise in both quantity supplied and quantity demanded.
C. A rise in quantity supplied and a fall in quantity demanded.
D. A fall in quantity supplied and a rise in quantity demanded.

10. If demand and supply both increase, this will cause
A. an increase in equilibrium quantity, but an uncertain effect on the equilibrium price.
B. an increase in the equilibrium price, but an uncertain effect on the equilibrium quantity.
C. an increase in the equilibrium price and quantity.
D. a decrease in the equilibrium price and quantity.

[larry]

Marcus - you have asked 6 questions similar to this one wanting to check your answers. However you have not indicated the answers that you have. We are therefore unable to explain to you where you have gone wrong (if you have). Therefore it is just possible that you don't require "homework help" but instead want someone to do your homework for you.

I shall answer this question - but if you click on the edit button in your other questions and add the answers you think are correct in the additional information box I shall go back to them later.

1. An "inverse" relationship. Therefore when price goes up, quantity demanded goes down and vice-versa when price goes down, quantity demanded goes up
Answer B

2. The Laws of supply and demand always carry the caveat "Ceteris Paribus" or other things being equal. For instance the government could give higher student grants and although the price of the tuition increases the net effect on the students has been offset by the grant.
Answer B

3. The price of VHS movies has risen relative to DVD therefore some existing customers will switch out of VHS and into DVD
Answer A

4. No graph
5. No graph

6. If nurses are paid more, more school leavers or people in other jobs will consider nursing as a career more. Therefore as wages go up. the supply of nurses will also go up.
Answer A
(Please note that answer D will also occur, but that is due to the law of demand and not the law of supply).

7. no graph

8. If price is over equilibrium price then the quantity demanded will be less than the quantity supplied. Therefore there will be a surplus. The larger this gap in actual price to equilibrium price the larger the surplus.
Answer C

9. A rise in quantity supplied as suppliers seek to increase production to obtain the higher prices (and hence higher profits) but as prices rise demand will also fall until a new equilibrium position is obtained.
Answer C

10. Both supply and demand curves shift to the right. Both shifts result in an increase in equilibrium quantity and an indeterminant change in equilibrium price.
ANswer A