Question 1

Which of the following is NOT a possible consequence of an effective price ceiling?

Accepted Answer

A)  queueing costs 
B)  black markets 
C)  inferior quality 
D)  industrial expansion 
A)  queueing costs 
B)  black markets 
C)  inferior quality 
D)  industrial expansion D

Question 2

Use Table: Supply and Demand Schedule for Walking Tours. What are the new equilibrium price and quantity in this market if at every price $30 more walking tours are supplied?
​

Accepted Answer

A)  Price is $30, and quantity is 80. 
B)  Price is $20, and quantity is 50. 
C)  Price is $60, and quantity is 40. 
D)  Price is $20, and quantity is 80. 
A)  Price is $30, and quantity is 80. 
B)  Price is $20, and quantity is 50. 
C)  Price is $60, and quantity is 40. 
D)  Price is $20, and quantity is 80. D

Question 3

A lawn chair producer expects that when summer comes, the price of lawn chairs will increase. How does that impact the price and quantity in the market for lawn chairs in January?

Accepted Answer

A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price decreases, and quantity decreases. 
D)  Price increases, and quantity increases. 
A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price decreases, and quantity decreases. 
D)  Price increases, and quantity increases. A

Question 4

How do the price and quantity change for a good if the cost of producing the good decreases?

Accepted Answer

A)  Price increases, and quantity increases. 
B)  Price increases, and quantity decreases. 
C)  Price decreases, and quantity increases. 
D)  Price decreases, and quantity decreases. 
A)  Price increases, and quantity increases. 
B)  Price increases, and quantity decreases. 
C)  Price decreases, and quantity increases. 
D)  Price decreases, and quantity decreases.

Question 5

Use Figure: The Market for Sandwiches. How much is sold if a price floor of $9 is imposed on this market?
​
Figure: The Market for Sandwiches

Accepted Answer

A)  two 
B)  six 
C)  eight 
D)  12 
A)  two 
B)  six 
C)  eight 
D)  12

Question 6

Use Figure: The Market for Sandwiches. What happens if the current price of sandwiches is $6?
​
Figure: The Market for Sandwiches

Accepted Answer

A)  There is a shortage. 
B)  There is a surplus. 
C)  Quantity supplied exceeds quantity demanded. 
D)  Quantity supplied equals quantity demanded. 
A)  There is a shortage. 
B)  There is a surplus. 
C)  Quantity supplied exceeds quantity demanded. 
D)  Quantity supplied equals quantity demanded.

Question 7

What statement about markets is correct?

Accepted Answer

A)  We can expect markets to stay at a price that is higher than the equilibrium price. 
B)  We can expect markets to gravitate toward their equilibrium points. 
C)  We can expect persistent shortages in markets. 
D)  We can expect persistent surpluses in markets. 
A)  We can expect markets to stay at a price that is higher than the equilibrium price. 
B)  We can expect markets to gravitate toward their equilibrium points. 
C)  We can expect persistent shortages in markets. 
D)  We can expect persistent surpluses in markets.

Question 8

How do the price and quantity change for lawn chairs if the cost of labor used to make lawn chairs decreases?

Accepted Answer

A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price increases, and quantity increases. 
D)  Price decreases, and quantity decreases. 
A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price increases, and quantity increases. 
D)  Price decreases, and quantity decreases.

Question 9

How does the price and quantity change for crab claws if the price of butter, a complement in consumption to crab claws, decreases?

Accepted Answer

A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price increases, and quantity increases. 
D)  Price decreases, and quantity decreases. 
A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price increases, and quantity increases. 
D)  Price decreases, and quantity decreases.

Question 10

The current price of cupcakes is $4, but the equilibrium price in the market for cupcakes is $5. What will happen in this market?

Accepted Answer

A)  There will be a shortage, but the price will gravitate up. 
B)  There will be a surplus, but the price will gravitate down. 
C)  There will be a shortage, but the price will gravitate down. 
D)  There will be a surplus, but the price will gravitate up. 
A)  There will be a shortage, but the price will gravitate up. 
B)  There will be a surplus, but the price will gravitate down. 
C)  There will be a shortage, but the price will gravitate down. 
D)  There will be a surplus, but the price will gravitate up.

Question 11

Which of the following causes an increase in equilibrium price and a decrease in equilibrium quantity?

Accepted Answer

A)  Supply increases. 
B)  Demand increases. 
C)  Supply decreases. 
D)  Demand decreases. 
A)  Supply increases. 
B)  Demand increases. 
C)  Supply decreases. 
D)  Demand decreases.

Question 12

Why does the equilibrium quantity change when there is an increase in demand?

Accepted Answer

A)  A shortage leads to a decrease in price, and a lower price increases quantity supplied and decreases quantity demanded. 
B)  A surplus leads to a decrease in price, and a lower price increases quantity supplied and decreases quantity demanded. 
C)  A shortage leads to an increase in price, and a higher price increases quantity supplied and decreases quantity demanded. 
D)  A shortage leads to an increase in price, and a higher price decreases quantity supplied and decreases quantity demanded. 
A)  A shortage leads to a decrease in price, and a lower price increases quantity supplied and decreases quantity demanded. 
B)  A surplus leads to a decrease in price, and a lower price increases quantity supplied and decreases quantity demanded. 
C)  A shortage leads to an increase in price, and a higher price increases quantity supplied and decreases quantity demanded. 
D)  A shortage leads to an increase in price, and a higher price decreases quantity supplied and decreases quantity demanded.

Question 13

The equilibrium price of crab claws is $19 per pound. What would be a price ceiling in the market for crab claws that would cause a shortage?

Accepted Answer

A)  $18 
B)  $19 
C)  $20 
D)  $21 
A)  $18 
B)  $19 
C)  $20 
D)  $21

Question 14

What would cause the equilibrium price to increase and the equilibrium quantity to increase in the market for fried shrimp?

Accepted Answer

A)  a decrease in the cost of labor in the shrimping industry 
B)  an increase in the price of a complement in production 
C)  a decrease in the price of a complement in consumption 
D)  firms' expectations of higher prices in the future 
A)  a decrease in the cost of labor in the shrimping industry 
B)  an increase in the price of a complement in production 
C)  a decrease in the price of a complement in consumption 
D)  firms' expectations of higher prices in the future

Question 15

In the period before Valentine's day, the price of roses and quantity of roses sold increase. List all of the possible changes in supply and demand that could cause an increase in both price and quantity.

Accepted Answer

The possible changes in supply and deman

Question 16

The _____ brings the market to the equilibrium point.

Accepted Answer

A)  price ceiling 
B)  price floor 
C)  equilibrium quantity 
D)  equilibrium price 
A)  price ceiling 
B)  price floor 
C)  equilibrium quantity 
D)  equilibrium price

Question 17

A decrease in demand causes what changes in a market?

Accepted Answer

A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price increases, and quantity increases. 
D)  Price decreases, and quantity decreases. 
A)  Price increases, and quantity decreases. 
B)  Price decreases, and quantity increases. 
C)  Price increases, and quantity increases. 
D)  Price decreases, and quantity decreases.

Question 18

Evaluate whether this statement is true or false: an increase in the demand for a good increases the price of a good, which in turn increases the supply of that good. Explain.

Accepted Answer

False. The influence on demand is not an

Question 19

The equilibrium price and quantity of bread have both increased. What change in this market causes these changes in price and quantity?

Accepted Answer

A)  Only demand decreased. 
B)  Both supply and demand increased by the same amount. 
C)  Both supply and demand increased, but demand increased by a greater amount. 
D)  Both supply and demand increased, but supply increased by a greater amount. 
A)  Only demand decreased. 
B)  Both supply and demand increased by the same amount. 
C)  Both supply and demand increased, but demand increased by a greater amount. 
D)  Both supply and demand increased, but supply increased by a greater amount.

Question 20

Which of the following causes a decrease in equilibrium price and an increase in equilibrium quantity?

Accepted Answer

A)  Supply increases. 
B)  Demand increases. 
C)  Supply decreases. 
D)  Demand decreases. 
A)  Supply increases. 
B)  Demand increases. 
C)  Supply decreases. 
D)  Demand decreases.

Which of the following is NOT a possible consequence of an effective price ceiling?

Use Table: Supply and Demand Schedule for Walking Tours. What are the new equilibrium price and quantity in this market if at every price $30 more walking tours are supplied?

A lawn chair producer expects that when summer comes, the price of lawn chairs will increase. How does that impact the price and quantity in the market for lawn chairs in January?

How do the price and quantity change for a good if the cost of producing the good decreases?

Use Figure: The Market for Sandwiches. How much is sold if a price floor of $9 is imposed on this market? Figure: The Market for Sandwiches

Use Figure: The Market for Sandwiches. What happens if the current price of sandwiches is $6? Figure: The Market for Sandwiches

What statement about markets is correct?

How do the price and quantity change for lawn chairs if the cost of labor used to make lawn chairs decreases?

How does the price and quantity change for crab claws if the price of butter, a complement in consumption to crab claws, decreases?

The current price of cupcakes is $4, but the equilibrium price in the market for cupcakes is $5. What will happen in this market?

Which of the following causes an increase in equilibrium price and a decrease in equilibrium quantity?

Why does the equilibrium quantity change when there is an increase in demand?

The equilibrium price of crab claws is $19 per pound. What would be a price ceiling in the market for crab claws that would cause a shortage?

What would cause the equilibrium price to increase and the equilibrium quantity to increase in the market for fried shrimp?

In the period before Valentine's day, the price of roses and quantity of roses sold increase. List all of the possible changes in supply and demand that could cause an increase in both price and quantity.

The _____ brings the market to the equilibrium point.

A decrease in demand causes what changes in a market?

Evaluate whether this statement is true or false: an increase in the demand for a good increases the price of a good, which in turn increases the supply of that good. Explain.

The equilibrium price and quantity of bread have both increased. What change in this market causes these changes in price and quantity?

Which of the following causes a decrease in equilibrium price and an increase in equilibrium quantity?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 5: Market Equilibrium

Which of the following is NOT a possible consequence of an effective price ceiling?

Use Table: Supply and Demand Schedule for Walking Tours. What are the new equilibrium price and quantity in this market if at every price $30 more walking tours are supplied? ​

A lawn chair producer expects that when summer comes, the price of lawn chairs will increase. How does that impact the price and quantity in the market for lawn chairs in January?

How do the price and quantity change for a good if the cost of producing the good decreases?

Use Figure: The Market for Sandwiches. How much is sold if a price floor of $9 is imposed on this market? ​ Figure: The Market for Sandwiches

Use Figure: The Market for Sandwiches. What happens if the current price of sandwiches is $6? ​ Figure: The Market for Sandwiches

What statement about markets is correct?

How do the price and quantity change for lawn chairs if the cost of labor used to make lawn chairs decreases?

How does the price and quantity change for crab claws if the price of butter, a complement in consumption to crab claws, decreases?

The current price of cupcakes is $4, but the equilibrium price in the market for cupcakes is $5. What will happen in this market?

Which of the following causes an increase in equilibrium price and a decrease in equilibrium quantity?

Why does the equilibrium quantity change when there is an increase in demand?

The equilibrium price of crab claws is $19 per pound. What would be a price ceiling in the market for crab claws that would cause a shortage?

What would cause the equilibrium price to increase and the equilibrium quantity to increase in the market for fried shrimp?

In the period before Valentine's day, the price of roses and quantity of roses sold increase. List all of the possible changes in supply and demand that could cause an increase in both price and quantity.

The _____ brings the market to the equilibrium point.

A decrease in demand causes what changes in a market?

Evaluate whether this statement is true or false: an increase in the demand for a good increases the price of a good, which in turn increases the supply of that good. Explain.

The equilibrium price and quantity of bread have both increased. What change in this market causes these changes in price and quantity?

Which of the following causes a decrease in equilibrium price and an increase in equilibrium quantity?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Use Table: Supply and Demand Schedule for Walking Tours. What are the new equilibrium price and quantity in this market if at every price $30 more walking tours are supplied?

Use Figure: The Market for Sandwiches. How much is sold if a price floor of $9 is imposed on this market? Figure: The Market for Sandwiches

Use Figure: The Market for Sandwiches. What happens if the current price of sandwiches is $6? Figure: The Market for Sandwiches