Question 1

Use Table: Supply and Demand Schedule for Walking Tours. What is the new equilibrium price and quantity in this market if at every price 30 fewer walking tours are demanded?
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Accepted Answer

A)  Price is $30, and quantity is 40. 
B)  Price is $20, and quantity is 50. 
C)  Price is $60, and quantity is 40. 
D)  Price is $10, and quantity is 30. 
A)  Price is $30, and quantity is 40. 
B)  Price is $20, and quantity is 50. 
C)  Price is $60, and quantity is 40. 
D)  Price is $10, and quantity is 30.

Question 2

The consumer and producer surplus that is lost when an inefficient quantity is sold is called:

Accepted Answer

A)  deadpan surplus. 
B)  deadweight loss. 
C)  shortages. 
D)  surpluses. 
A)  deadpan surplus. 
B)  deadweight loss. 
C)  shortages. 
D)  surpluses.

Question 3

How do the price and quantity change for a lawn chairs if the price of outdoor sofas, a substitute in consumption to lawn chairs, increases?

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.

Question 4

The price in a market is currently higher than the equilibrium price, and as a result, there is deadweight loss in this market. What caused this?

Accepted Answer

A)  a price ceiling 
B)  a price floor 
C)  an increase in supply 
D)  an increase in demand 
A)  a price ceiling 
B)  a price floor 
C)  an increase in supply 
D)  an increase in demand

Question 5

A _____ occurs when the price of a good is higher than the equilibrium price, and a _____ occurs when the price of a good is lower than the equilibrium price.

Accepted Answer

A)  equilibrium; shortage 
B)  shortage; surplus 
C)  surplus; shortage 
D)  surplus; equilibrium 
A)  equilibrium; shortage 
B)  shortage; surplus 
C)  surplus; shortage 
D)  surplus; equilibrium

Question 6

When a market has reached the equilibrium quantity, the:

Accepted Answer

A)  highest price that consumers are willing to pay is equal to the lowest price that sellers are willing to accept. 
B)  price received by consumers is higher than the price paid by sellers. 
C)  price paid by consumers is lower than the price received by sellers. 
D)  lowest price that consumers are willing to pay is equal to the highest price that sellers are willing to accept. 
A)  highest price that consumers are willing to pay is equal to the lowest price that sellers are willing to accept. 
B)  price received by consumers is higher than the price paid by sellers. 
C)  price paid by consumers is lower than the price received by sellers. 
D)  lowest price that consumers are willing to pay is equal to the highest price that sellers are willing to accept.

Question 7

Use Table: Supply and Demand Schedule for Walking Tours. What would be an effective price ceiling in this market, and how much would be sold?

Accepted Answer

A)  The price is $10, and 70 would be sold. 
B)  The price is $30, and 80 would be sold. 
C)  The price is $20, and 50 would be sold. 
D)  The price is $10, and 90 would be sold. 
A)  The price is $10, and 70 would be sold. 
B)  The price is $30, and 80 would be sold. 
C)  The price is $20, and 50 would be sold. 
D)  The price is $10, and 90 would be sold.

Question 8

Use Table: The Market for Sunglasses. What is the equilibrium quantity in this market? What happens if a price floor of $40 is imposed on this market? Explain why this causes a deadweight loss.
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Accepted Answer

The equilibrium price is $20, and the eq

Question 9

Which of the following would NOT cause the equilibrium price to increase and the equilibrium quantity to decrease in the market for bacon pasta?

Accepted Answer

A)  Firms expect lower prices in the future. 
B)  The cost of bacon, an input to producing bacon pasta, increases. 
C)  The number of firms producing bacon pasta decreases. 
D)  The price of a substitute in production increases. 
A)  Firms expect lower prices in the future. 
B)  The cost of bacon, an input to producing bacon pasta, increases. 
C)  The number of firms producing bacon pasta decreases. 
D)  The price of a substitute in production increases.

Question 10

A new gaming controller was released at a price of $65. The quantity of gaming controllers supplied is higher than the quantity of gaming controllers demanded at this price. What is true about the market for gaming headsets?

Accepted Answer

A)  It is in equilibrium. 
B)  There is a shortage. 
C)  There is a surplus. 
D)  The price of gaming headsets will not change. 
A)  It is in equilibrium. 
B)  There is a shortage. 
C)  There is a surplus. 
D)  The price of gaming headsets will not change.

Question 11

The _____ is where the supply curve and the demand curve intersect.

Accepted Answer

A)  equilibrium point 
B)  vertical axis 
C)  horizontal axis 
D)  surplus 
A)  equilibrium point 
B)  vertical axis 
C)  horizontal axis 
D)  surplus

Question 12

Use Figure: The Market for Sandwiches II. What does the shaded area in this graph represent?
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Figure: The Market for Sandwiches II

Accepted Answer

A)  consumer surplus 
B)  deadweight loss 
C)  surplus 
D)  producer surplus 
A)  consumer surplus 
B)  deadweight loss 
C)  surplus 
D)  producer surplus

Question 13

_____ is an artificial upward limit on the price of a good or service.

Accepted Answer

A)  A price floor 
B)  A price ceiling 
C)  A surplus 
D)  An equilibrium 
A)  A price floor 
B)  A price ceiling 
C)  A surplus 
D)  An equilibrium

Question 14

The equilibrium price is the price that:

Accepted Answer

A)  makes buyers the happiest. 
B)  makes the quantity supplied equal to the quantity demanded. 
C)  generates the largest surplus in a market. 
D)  generates the smallest surplus in a market. 
A)  makes buyers the happiest. 
B)  makes the quantity supplied equal to the quantity demanded. 
C)  generates the largest surplus in a market. 
D)  generates the smallest surplus in a market.

Question 15

_____ is an artificial lower bound on the price of a good or service.

Accepted Answer

A)  A price ceiling 
B)  A price floor 
C)  An equilibrium point 
D)  A deadweight loss 
A)  A price ceiling 
B)  A price floor 
C)  An equilibrium point 
D)  A deadweight loss

Question 16

An effective price floor is set _____ the equilibrium price and causes a _____.

Accepted Answer

A)  above; surplus 
B)  below; shortage 
C)  above; shortage 
D)  below; surplus 
A)  above; surplus 
B)  below; shortage 
C)  above; shortage 
D)  below; surplus

Question 17

A _____ market is an illegal market.

Accepted Answer

A)  white 
B)  black 
C)  gray 
D)  yellow 
A)  white 
B)  black 
C)  gray 
D)  yellow

Question 18

Who ostensibly benefits from a price ceiling? Who ostensibly benefits from a price floor? Explain.

Accepted Answer

Buyers of a good or service typically be

Question 19

Use Table: Supply and Demand Schedule for Walking Tours. What price would NOT cause deadweight loss in this market?
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Accepted Answer

A)  $20 
B)  $30 
C)  $40 
D)  $50 
A)  $20 
B)  $30 
C)  $40 
D)  $50

Question 20

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

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.

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

The consumer and producer surplus that is lost when an inefficient quantity is sold is called:

How do the price and quantity change for a lawn chairs if the price of outdoor sofas, a substitute in consumption to lawn chairs, increases?

The price in a market is currently higher than the equilibrium price, and as a result, there is deadweight loss in this market. What caused this?

A _ occurs when the price of a good is higher than the equilibrium price, and a _ occurs when the price of a good is lower than the equilibrium price.

When a market has reached the equilibrium quantity, the:

Use Table: Supply and Demand Schedule for Walking Tours. What would be an effective price ceiling in this market, and how much would be sold?

Use Table: The Market for Sunglasses. What is the equilibrium quantity in this market? What happens if a price floor of $40 is imposed on this market? Explain why this causes a deadweight loss.

Which of the following would NOT cause the equilibrium price to increase and the equilibrium quantity to decrease in the market for bacon pasta?

A new gaming controller was released at a price of $65. The quantity of gaming controllers supplied is higher than the quantity of gaming controllers demanded at this price. What is true about the market for gaming headsets?

The _____ is where the supply curve and the demand curve intersect.

Use Figure: The Market for Sandwiches II. What does the shaded area in this graph represent? Figure: The Market for Sandwiches II

_____ is an artificial upward limit on the price of a good or service.

The equilibrium price is the price that:

_____ is an artificial lower bound on the price of a good or service.

An effective price floor is set _ the equilibrium price and causes a _.

A _____ market is an illegal market.

Who ostensibly benefits from a price ceiling? Who ostensibly benefits from a price floor? Explain.

Use Table: Supply and Demand Schedule for Walking Tours. What price would NOT cause deadweight loss in this market?

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

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

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

The consumer and producer surplus that is lost when an inefficient quantity is sold is called:

How do the price and quantity change for a lawn chairs if the price of outdoor sofas, a substitute in consumption to lawn chairs, increases?

The price in a market is currently higher than the equilibrium price, and as a result, there is deadweight loss in this market. What caused this?

A _____ occurs when the price of a good is higher than the equilibrium price, and a _____ occurs when the price of a good is lower than the equilibrium price.

When a market has reached the equilibrium quantity, the:

Use Table: Supply and Demand Schedule for Walking Tours. What would be an effective price ceiling in this market, and how much would be sold?

Use Table: The Market for Sunglasses. What is the equilibrium quantity in this market? What happens if a price floor of $40 is imposed on this market? Explain why this causes a deadweight loss. ​ ​

Which of the following would NOT cause the equilibrium price to increase and the equilibrium quantity to decrease in the market for bacon pasta?

A new gaming controller was released at a price of $65. The quantity of gaming controllers supplied is higher than the quantity of gaming controllers demanded at this price. What is true about the market for gaming headsets?

The _____ is where the supply curve and the demand curve intersect.

Use Figure: The Market for Sandwiches II. What does the shaded area in this graph represent? ​ Figure: The Market for Sandwiches II

_____ is an artificial upward limit on the price of a good or service.

The equilibrium price is the price that:

_____ is an artificial lower bound on the price of a good or service.

An effective price floor is set _____ the equilibrium price and causes a _____.

A _____ market is an illegal market.

Who ostensibly benefits from a price ceiling? Who ostensibly benefits from a price floor? Explain.

Use Table: Supply and Demand Schedule for Walking Tours. What price would NOT cause deadweight loss in this market? ​

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

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 is the new equilibrium price and quantity in this market if at every price 30 fewer walking tours are demanded?

A _ occurs when the price of a good is higher than the equilibrium price, and a _ occurs when the price of a good is lower than the equilibrium price.

Use Table: The Market for Sunglasses. What is the equilibrium quantity in this market? What happens if a price floor of $40 is imposed on this market? Explain why this causes a deadweight loss.

Use Figure: The Market for Sandwiches II. What does the shaded area in this graph represent? Figure: The Market for Sandwiches II

An effective price floor is set _ the equilibrium price and causes a _.

Use Table: Supply and Demand Schedule for Walking Tours. What price would NOT cause deadweight loss in this market?