Exam 4: Markets in Action

Exhibit 4-8 Demand and supply curves ​ -In Exhibit 4-8, a movement from A to C is best described as a(n):

Exhibit 4-5 Supply and demand curves for computers ​ -Which of the following changes could cause the computer market to change as shown in Exhibit 4-5?

One method of correcting for ____ externalities is to create a ____ to make sure the market accounts for all costs and benefits.

Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude that:

Exhibit 4-7 Demand and supply schedules for movie tickets ​ Price Quantity Demanded Quantity Supplied \ 10 200 500 8 240 470 6 370 420 4 390 390 2 410 310 -In Exhibit 4-7, a 100 decrease in quantity demanded at every price level would cause the new equilibrium price to become:

Which if the following is the best example of a public good?

​Assume a price floor is set above the equilibrium price. The result is a surplus.

Exhibit 4-3 Supply and demand curves -In Exhibit 4-3, an increase in demand would cause a movement from which equilibrium point to another, other things being equal?

Which of the following would raise both the equilibrium price and the equilibrium quantity of strawberries?

There are apartments in Chicago whose rooftops overlook Wrigley Field. On game day you can find free riders on the roof enjoying ____.

Which of the following would be a private cost to a cigarette manufacturer?

A decrease in buyers' income, assuming good X is a normal good, combined with a decrease in the wage rate paid to workers producing good X would be represented by which of the following changes in equilibrium shown in Graph C of Exhibit 4-4?

​If the supply curve decreases while the demand curve remains unchanged, the equilibrium price would decrease.

Exhibit 4-8 Demand and supply curves ​ -In Exhibit 4-8, a movement from A to D is best described as a(n):

An increase in the demand for tattoos will lead to a:

​Assume a ceiling price is set above the equilibrium price. The final result is the equilibrium price.

If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the equilibrium price of cigarettes will fall. This fall in the equilibrium price can be attributed to a(n):

A vaccination shot provides a(n):

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?

If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show: