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• Suppose the market for chocolate balls is initially in equilibrium. What happens in the chocolate ball market if the price of the input, cocoa, drops sharply due to fine harvests? The supply curve shifts outward*
• What happens to the market equilibrium in the pulp market if production technology improves? The price of pulp decreases while the quantity increases
• If a company covers its variable costs but still makes losses, how should they choose to act in the short term, respectively? Produce where the Marginal Revenue (MR) = The Marginal Cost (MC) in the long term and leave the market in the long term
• Monopoly companies are not characterized by They are prize takers
• Which of the following changes does not make the palt demand curve shift? A change in the price of palt
• What happens in the market for buns if the salary rises for bakers? Supply shifts inward
• The company’s short-term supply curve is equal to The company’s marginal cost (MC) curve above average variable curve (AVC) min
• Marginal utility refers to: The change in the total utility of the last unit consumed by a commodity
• Market demand for a product can be derived by Sum up the demanded quantity each individual has at all price levels
• The supply of jeans is NOT a function of? Income
• What happens to the market equilibrium in the pulp market if production technology improves? The price of pulp decreases while the quantity increases
• A full/pure competitive market is not characterized by: Heterogeneous goods
• Which of the following statements is false for a company that maximizes profits and operates in a pure/perfect competitive market? They make a financial profit in the long run
• Assume that the market for apples is in equilibrium. What happens if the price of apples rises for some reason? The demand curve does not change at all, we move along the curve
• We assume that the market for Kex chocolate is initially in equilibrium. Kex chocolate is assumed to be a so-called normal product. What happens to the price and quantity in the Kex chocolate market if consumers’ disposable income (the income dedicated for consumption) rises for some reason? Price and quantity increase
• If the supply of a product is inelastic (price insensitive), it means that A price change results in a small change in the quantity supplied
• The palt market is now back in equilibrium. What happens if the potato (used to make palt) price rises sharply due to poor harvests in a given year? The supply curve shifts inwards
• If a product’s demand is income-sensitive, this means that a 10% increase in income gives rise to: IAn increase in demand that is >10%
• The present value of SEK 100 that you get in 2 years discounted by 5% is: Less than SEK 100
• If the demand for a product is elastic (price sensitive), it means that A price change results in a large change in the quantity demanded

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