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2015 AP Microeconomics Practice Exam Multiple Choice Questions Free Download

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5)Which of the following will most likely happen in the market for good X if the price of good X decreases?

  1. The supply of good X will decrease.
  2. The demand for good X will increase.
  3. The quantity demanded for good X will increase.
  4. The demand will decrease and the supply will increase.
  5. The quantity supplied for good X will increase.

9)Suppose that price in a perfectly competitive industry decreases and it is now below minimum average total cost but remains above minimum average variable cost. Which of the following will occur in the short run?

  1. New firms will enter the industry.
  2. Firms will increase output so that marginal revenue equals the new price.
  3. Firms will produce the output at which average total cost is at a minimum.
  4. Firms will produce the output at which marginal cost equals the new price.
  5. Firms will not produce at all, since they will be unable to cover all their costs.

21)Assume that good X is a normal good. Which of the following helps to explain why a decrease in the price of good X increases the quantity demanded of good X?

  1. Good X becomes relatively less expensive than its substitutes, so consumers buy more of good X and fewer of the substitutes.
  2. The marginal utility of consuming good X increases as more of good X is consumed.
  3. The lower price of good X decreases the marginal utility per dollar; therefore, consumers buy more of good X.
  4. The demand curve for good X shifts to the left.
  5. The supply curve for good X shifts to the right.

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