Exam 4: Demand, Supply, and Equilibrium

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise: MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte. -Refer to the scenario above.Suppose attending other major league sports events is a substitute for attending MLB games.If the Carolina Panthers decrease their ticket prices by 2.6 percent,how will this affect demand for MLB games in Charlotte?

Which of the following is likely to lead to a rightward shift in the supply curve of cotton?

An expected increase in the market price of oil in the coming year is likely to ________ in the current year.

Suppose the equilibrium price and quantity of bicycles is determined at $40 and 200 units,respectively.For some reason,the market price of the bicycles initially increases to $60 and then decreases to $20.How will these deviations from the equilibrium price be corrected in a perfectly competitive market? Explain with the help of suitable diagrams.

The following figure shows the demand and supply curves for gas. D₁ is the initial demand curve, and S is the supply curve. -Refer to the figure above.When the demand curve for gas is D₁ and the supply curve for gas is S,the equilibrium price is ________.

The demand schedule for a commodity illustrates how the consumption of a commodity changes with changes in ________.

Which of the following examples best approximates a competitive market?

The market demand schedule and supply schedule for digital cameras is shown in the table below.Illustrate the answers with the help of a graph. a)Determine the equilibrium quantity and price. b)What is the excess demand in the market if the price is set at $20? c)What is the excess supply in the market if the price is set at $40?

What is the difference between the following two situations? a)A shortage in the market for lightbulbs b)A surplus in the market for lightbulbs Illustrate your answers with the help of suitable diagrams.

At the competitive equilibrium,the ________.

A change in the quantity demanded of a good is ________.

The quantity supplied of a good is ________.

Scenario: Suppose the market for wheat in the United States is given by the demand and supply schedules in the table below (as well as the accompanying graph). Suppose the U.S. government imposes a minimum price for wheat (price floor) of $6 per bushel. -Refer to the scenario above.The quantity of wheat traded in the market at the minimum price of $6 per bushel is ________.

If the demand and supply curves for a commodity both shift to the left by the same amount,then in comparison to the initial equilibrium,the new equilibrium will be characterized by ________.

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market. -Refer to the table above.If the market supply of bread at a price of $3 per loaf is 45 loaves,Seller 3's supply is ________ loaves.

Scenario: A market researcher asks three consumers, A, B, and C, about their willingness to pay for different quantities of a 20-ounce bottle of Lemon-Lime Gatorade. She collects the following information. -Refer to the scenario above.If the price of Gatorade decreases from $4.00 per bottle to $3.50 per bottle,what is consumer C's change in quantity demanded?

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market. -Refer to the table above.Assuming that the market consists of only these three sellers,what is the market supply when the price is $1 per loaf?

Which of the following factors is likely to lead to an increase in the quantity demanded of pens?

Scenario: Suppose the market for wheat in the United States is given by the demand and supply schedules in the table below (as well as the accompanying graph). Suppose the U.S. government imposes a minimum price for wheat (price floor) of $6 per bushel. -Refer to the scenario above.The quantity demanded of wheat at the minimum price is ________.

The gasoline market in the United States is often said to be highly competitive.It is not perfectly competitive,but it has features and results that are similar to those of a perfectly competitive market,such as ________.