1. When the market price is higher than the equilibrium price, there is: (Points: 5)

2. A decrease in demand means that quantity demanded falls: (Points: 5)

3. If the market price is below equilibrium price, quantity demanded: (Points: 5)

4. At equilibrium, quantity demanded __________ equals quantity supplied. (Points: 5)

5. When the market price is above equilibrium price, the market price will be driven: (Points: 5)

6. Changes in demand are caused by each of the following EXCEPT changes in: (Points: 5)

7. An increase in the price of a complement will result in a(n) __________ for the product. (Points: 5)

8. If coffee is a substitute for tea, and the price of coffee rises, what will happen? (Points: 5)

9. The most important determinant of the degree of elasticity of demand is: (Points: 5)

10. If a car dealership decides to offer a rebate to reduce the selling price of its cars and as a result finds an increase in its total revenues, then the demand for cars from this dealership is: (Points:
5)
11. Total revenue will increase if price: (Points: 5)

12. Cross elasticity of demand measures the response in: (Points: 5)

13. A person would be maximizing her total utility when: (Points: 5)

14. Melissa says she will have to be paid in order to even try Jason’s cooking, so her marginal
utility for Jason’s cooking is: (Points: 5)

15. According to the general utility formula, the marginal utility of a good divided by the price of
that good is: (Points: 5)

16. If your marginal utility from your last session with your personal trainer is equal to the price
she charged you, then: (Points: 5)

17. A decrease in the demand for a service means that the: (Points: 5)

19. An increase in supply means that quantity supplied rises: (Points: 5)

20. When the market price is lower than the equilibrium price, there is: (Points: 5)