MicroEcon Supply &
Demand Practice EXAM
WITH ANSWERS
• Consider each of the following statements; is it TRUE or FALSE? You do not need
toexplain your answer. (15%)
• Consumer Surplus can be negative.
True
• When population increases, demand for housing goes up.
True
• If the price goes up, then the demand curve shifts to the left.
False
• If the price goes up, then the supply curve shifts to the left.
True
• An improvement in technology shifts the supply curve to the right.
True
• Consider the following demand
equation. p = 600 − (1/2)q
What is the Consumer Surplus when p ∗ = 120? Show your work. (20%)
, • Consider the following supply
equation. p = 1, 200 + (1/4)q
What is the Producer Surplus when p ∗ = 1, 800? Show your work. (20%)
Demand Practice EXAM
WITH ANSWERS
• Consider each of the following statements; is it TRUE or FALSE? You do not need
toexplain your answer. (15%)
• Consumer Surplus can be negative.
True
• When population increases, demand for housing goes up.
True
• If the price goes up, then the demand curve shifts to the left.
False
• If the price goes up, then the supply curve shifts to the left.
True
• An improvement in technology shifts the supply curve to the right.
True
• Consider the following demand
equation. p = 600 − (1/2)q
What is the Consumer Surplus when p ∗ = 120? Show your work. (20%)
, • Consider the following supply
equation. p = 1, 200 + (1/4)q
What is the Producer Surplus when p ∗ = 1, 800? Show your work. (20%)
