Quiz Economics
MIT 14.01SC: Supply Demand Elasticity
Core microeconomics graph and elasticity drill.
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Question 1
If demand increases while supply is unchanged, what happens in the standard supply-demand model?
- Equilibrium price rises and equilibrium quantity rises
- Equilibrium price falls and quantity falls
- Only quantity changes; price cannot change
- The demand curve becomes vertical automatically
Question 2
A price ceiling below equilibrium usually creates what immediate market pressure?
- A shortage
- A surplus
- Perfect competition
- A demand curve shift to zero
Question 3
Price elasticity of demand measures responsiveness of quantity demanded to what?
- A change in price
- A change in the alphabet
- A change in courtroom procedure
- A change in atomic number
Question 4
If demand is inelastic, a price increase tends to do what to total revenue?
- Increase total revenue
- Decrease total revenue in every case
- Leave total revenue mathematically impossible
- Make quantity demanded rise by more than price
Question 5
Consumer surplus is best described as what?
- The difference between willingness to pay and the price paid
- A firm's accounting profit
- Government tax revenue only
- A legal property title
Question 6
A perfectly competitive firm maximizes profit where which condition holds?
- Marginal revenue equals marginal cost
- Average fixed cost equals zero in every period
- Price is always below variable cost
- Demand is legally required to be vertical
Question 7
Deadweight loss usually represents what?
- Lost total surplus from transactions that no longer occur
- All consumer spending
- All producer revenue
- The weight of unsold goods
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