INSTRUCTIONS
#1 demand
#2 quantity demanded
#3 quantity demanded ; equilibrium,
If a question requires two or more answers, you should give me something like #3; otherwise, either #1 or #2 would be sufficient. Lastly, be sure to place the # (like #8, #13, etc.) in front of the question you are answering or else your assignment will not be graded. If you are ready, let's go. Here are the questions you need to answer (for real now):
1. The demand curve is downward sloping and the law of demand states that there is an inverse relationship between the price level of a good and its demand. True or False?
2. The Law of Diminishing Marginal Return is one of the two reasons explaining as to why the demand curve is downward sloping. True or False?
3. When quantity demanded is greater than quantity supplied, it is called _______ or ______ ______.
4. On the other hand, if quantity demanded is less than quantity supplied, it is called ______ or _____ _____.
5. Assuming Tesla is a normal good and that income rises, the result is an increase of quantity demanded for Tesla, ceteris paribus. True or False?
6. Tesla and Lexus are considered substitute goods. If the average price of Tesla rises, we can expect that the ____ (demand or quantity demanded) of Tesla to ____ (increase or decrease); consequently, the ____ (demand or quantity demanded) of Lexus to ____ (increase or decrease).
7. UCLA and USC have always been a rival competitor in college football for decades. If the average ticket price of USC football decreases, we can expect that the demand of UCLA football to ____ (increase or decrease).
8. Assuming the market of gasoline is in equilibrium at $6 per gallon and that the government believes that it is too high for its people. It should implement a ____ (price floor or price ceiling) program, which would result in an ____ (excess demand or excess supply or excess demanded or excess supplied) of gasoline in the market.
9. If the government believes that the average hourly wage ($5) is too low for its people, it should implement a ____ (price floor or price ceiling) program. To be effective, the regulated hourly wage should be ____ (higher than or below) the current equilibrium wage of $5.
10. If an increase in demand is greater than an increase in supply of a particular product, the result would be a higher equilibrium price whereas the equilibrium quantity would be indeterminant. True or False?
11. A rising degree of competitiveness (more competitors) of a particular product would ____ (increase or decrease) the supply curve, resulting in a/an ____ (increase or decrease) of ____ (quantity demanded or quantity supplied) of that same product.
12. Government's implementation of a per-unit sales tax of a particular product would ____ (increase or decrease) the ____ (supply or demand) curve, resulting in a/an ____ (increase or decrease) of the price level of that same product.
13. A market equilibrium exists whenever quantity demanded equals quantity supplied and that there is neither an ____ (excess demand or excess demanded) or ____ (excess supply or excess supplied).
14. The Law of Increasing Cost and ____ are the two reasons explaining as to why the supply curve of a product slopes upward.
15. Assuming the existence of a Normal Good and that consumers' income go up. The results would be ____ (higher or lower) price level and a/an ____ (increase or decrease) of ____ (quantity demanded or quantity supplied).
16. Ceteris paribus: military conflicts and / or political instability in the middle east tend to ____ (increase or decrease) the supply curve of gasoline, resulting in a/an ____ (increase or decrease) of ____ (quantity demanded or quantity supplied).