Exam 3: Markets, Demand and Supply, and the Price System

Most markets involve the use of money for transactions because:

A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good.

Ceteris paribus, a change in the quantity supplied along the supply curve of Braun coffee makers is:

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices. Table 3.1 $\begin{array}{|cccc|}\hline\begin{array}{c}\text { Price per } \\\text { DVD (\$) }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Demanded 1 }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Demanded 2 }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Demanded 3 }\end{array} \\5 & 10 & 15 & 5 \\4 & 20 & 25 & 15 \\3 & 30 & 35 & 25 \\2 & 40 & 45 & 35 \\1 & 50 & 55 & 45 \\\hline\end{array}$ -Refer to Table 3.1. If Quantity Demanded 1, Quantity Demanded 2, and Quantity Demanded 3 are market demand schedules, then the change from Quantity Demanded 1 to Quantity Demanded 2 may have been due to:

Which of the following is true of the law of supply?

The below figure shows the demand and supply curves in the market for gasoline. The price and quantity at the point of intersection of the demand and supply curves is $30 and 300 gallons respectively. Figure 3.6 -The removal of a price ceiling in a market results in:

An example of barter is voluntary work at an old-age home.

The leaders of the reforms in the countries that turned from government-run economies to market economies were told by their economic advisers to watch the price of eggs, not the heavy industries such as power generation and oil refining, because:

The table given below reports the quantity of bread loaves demanded and supplied at different per unit prices. Table 3.3 $\begin{array}{|ccc|}\hline \text { Price per Loaf }(\$) & \text { Quantity Demanded } & \text { Quantity Supplied } \\5 & 30 & 102 \\4 & 48 & 84 \\3 & 66 & 66 \\2 & 84 & 48 \\1 & 102 & 30\\\hline\end{array}$ -Refer to Table 3.3. Which of the following would occur in the market for bread if the market price exceeded the equilibrium price by $1?

Which of the following will cause an inward shift in the demand for steaks at a restaurant?

In the figure given below D₁ and S₁ are the original demand and supply curves. Figure 3.1 -Refer to Figure 3.1. Given D₁, if supply moves from S₁ to S₂ it implies:

Other things remaining unchanged, which of the following is most likely to cause an increase in the demand for personal computers?

A price control always benefits consumers.

Money exchanges are more efficient than barter because:

The exchange of goods and services directly without money is called:

The below figure shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves. Figure 3.5 -Based on Figure 3.5, which of the following conditions would most likely move the point of equilibrium from A to D?

Which of the following is true of a price floor?

Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

The demand schedule shows that the price of a good and quantity demanded are directly related to each other.

In the market for eggs, a removal of the price ceiling on eggs results in: