MICRO ECON TEST 1 - GEORGIA
SOUTHERN EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
The price and the quantity of a good and the quantity of the good demanded are ___ related, so
when the price rises, ___ - ANS negatively; the quantity demanded decreases
Which of the following statements is true?
A - the demand for a good will decrease if its price rises
B - a rise in the price of a substitute will shift the demand curve for the good leftward
C - A decrease in consumer income causes a leftward movement along the demand curve for a
normal good
D - A fall in the price of a complement will shift the demand curve for the good rightward -
ANS D - A fall in the price of a complement will shift the demand curve for the good
rightward
When the price of Apple Iphones rises, the ___ Samsung Galaxy phones ____ - ANS demand
for; increases
Which of the following will increase the supply of cellphones?
A - The price of cellphones rises because the demand for them increases
2026/2027 ALLRIGHTS RESERVED 1
, B - Cellphone connection providers lower their monthly rates
C - Average household income in the U.S. increases
D - U.S. producers move cellphone assembly to China where the wages are lower - ANS D-
U.S. producers move cellphone assembly to China where the wages are lower
Which of the following will decrease the demand for gas in the current week?
A - The current price of gas rises as a hurricane destroys refineries on the Gulf Coast
B - Buyers expect the price of gas to fall next week
C - Price of cars fall
D - Price of crude oil rises - ANS B - Buyers expect the price of gas to fall next week
Suppose the demand for beer increases. As a result, the equilibrium price of beer will ____ and
the equilibrium quantity of beer _____ - ANS rise; increase
Suppose the price of wheat in Canada falls. As a result, the equilibrium price of wheat in the
U.S. will ____ and the equilibrium quantity will ____ - ANS fall; increase
Suppose the price of organically grown lettuce rises in the short run (i.e. when farmers don't
have enough time to reallocate their resources). As a result, the equilibrium price of
conventionally produced lettuce will _____ and the equilibrium quantity of conventional lettuce
will _____. - ANS rise; increase
Suppose both buyers and sellers of Facebook stock hear a credible forecast that its price will fall
tomorrow. What will happen to the price of Facebook stock today in response to this news? -
ANS It will fall
Consider the effects of the following two events on the market for cotton: (1) unfavorable
whether makes cotton farming less productive; (2) consumer preferences shift from synthetic
2026/2027 ALLRIGHTS RESERVED 2
SOUTHERN EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
The price and the quantity of a good and the quantity of the good demanded are ___ related, so
when the price rises, ___ - ANS negatively; the quantity demanded decreases
Which of the following statements is true?
A - the demand for a good will decrease if its price rises
B - a rise in the price of a substitute will shift the demand curve for the good leftward
C - A decrease in consumer income causes a leftward movement along the demand curve for a
normal good
D - A fall in the price of a complement will shift the demand curve for the good rightward -
ANS D - A fall in the price of a complement will shift the demand curve for the good
rightward
When the price of Apple Iphones rises, the ___ Samsung Galaxy phones ____ - ANS demand
for; increases
Which of the following will increase the supply of cellphones?
A - The price of cellphones rises because the demand for them increases
2026/2027 ALLRIGHTS RESERVED 1
, B - Cellphone connection providers lower their monthly rates
C - Average household income in the U.S. increases
D - U.S. producers move cellphone assembly to China where the wages are lower - ANS D-
U.S. producers move cellphone assembly to China where the wages are lower
Which of the following will decrease the demand for gas in the current week?
A - The current price of gas rises as a hurricane destroys refineries on the Gulf Coast
B - Buyers expect the price of gas to fall next week
C - Price of cars fall
D - Price of crude oil rises - ANS B - Buyers expect the price of gas to fall next week
Suppose the demand for beer increases. As a result, the equilibrium price of beer will ____ and
the equilibrium quantity of beer _____ - ANS rise; increase
Suppose the price of wheat in Canada falls. As a result, the equilibrium price of wheat in the
U.S. will ____ and the equilibrium quantity will ____ - ANS fall; increase
Suppose the price of organically grown lettuce rises in the short run (i.e. when farmers don't
have enough time to reallocate their resources). As a result, the equilibrium price of
conventionally produced lettuce will _____ and the equilibrium quantity of conventional lettuce
will _____. - ANS rise; increase
Suppose both buyers and sellers of Facebook stock hear a credible forecast that its price will fall
tomorrow. What will happen to the price of Facebook stock today in response to this news? -
ANS It will fall
Consider the effects of the following two events on the market for cotton: (1) unfavorable
whether makes cotton farming less productive; (2) consumer preferences shift from synthetic
2026/2027 ALLRIGHTS RESERVED 2
