Exam 3: Demand, Supply, and Market Equilibrium

An increase in quantity supplied might be caused by an increase in resource costs.

If the price of product L increases, the demand curve for close-substitute product J will

(1) (2) (3) (4) (5) Price 50 40 \ 10 70 80 60 50 9 60 70 80 60 8 50 60 90 70 7 40 50 100 80 6 30 40 Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be

A government tax per unit of output reduces supply.

A government subsidy to the producers of a product

Refer to the diagram. Rent controls are best illustrated by

Refer to the diagram. A government price support program to aid farmers is best illustrated by

Other things being equal, the law of demand suggests that as

Price Per Unit Quantity Demanded Per Year Quantity Supplied Per Year \ 5 2,000 0 10 1,800 300 15 1,600 600 20 1,400 900 25 1,200 1,200 30 1,000 1,500 Refer to the above table. In this competitive market, the price and quantity will settle at

Refer to the diagram. An effective government-set price floor is best illustrated by

Over a period of time, the equilibrium price of a good increases and the quantity decreases. All of the following could account for this situation, except

If an economy produces its most wanted goods but uses outdated production methods, it is

An increase in the price of product A will

Refer to the diagram. If this is a competitive market, price and quantity will move toward

Refer to the above diagram for the milk market. In this market, the equilibrium price is ____ and equilibrium quantity is ___.

Other things equal, an excise tax on a product will

Which of the following factors is a "demand shifter" for new houses?