Exam 4: Demand, supply, and Equilibrium

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve. -Refer to the figure above.If the supply curve for flash drives shifts from S₁ to S₂,with no change in the demand curve,the new competitive equilibrium quantity is ________ units.

Other things remaining same,a leftward shift in the demand curve will lead to a(n)________.

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.What is the equilibrium price of notebooks?

The figure below shows the supply curves for gasoline for two oil companies (MaxOil and MagnusPetro). It would be useful to find the equations of the two supply curves to answer the questions below. -Refer to the figure above.Suppose that MaxOil,through a negotiation with the labor union representing its workforce,reduced its contribution to workers' health insurance.Meanwhile,MagnusPetro successfully negotiated to lower the price of ethanol (to be blended with its gasoline)with a supplier.How do these changes affect the supply curves?

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve. -Refer to the figure above.When the supply curve of flash drives is S₁ and the demand curve for flash drives is D,what is the shortage in the market when the price is $5?

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?

Which of the following examples best describes the Law of Demand?

Suppose the government decides that a particular commodity is a luxury and fixes its price above the market-determined price.What implications could this policy have?

Why is the competitive equilibrium price often referred to as the market clearing price?

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?

The following table shows the demand schedules of three consumers of wine. Assume that these three buyers constitute the entire market. -Refer to the table above.If the market price of wine is $4 per bottle,and the market demand for wine is 65 bottles,Sandra's demand for wine is ________.

Jenny likes chocolates.One day,a friend offers her a chocolate bar and she is extremely happy on receiving it.As the day progresses,many other people also buy her chocolate.As she gets more and more chocolates,her excitement on receiving each bar is seen to gradually lessen.Which economic principle is reflected in this example?

Explain the role of prices in a market.

How are the following events likely to affect the market supply of rice in an economy? a)A fall in the wage rate of farm labor b)An increase in the productivity of farm capital due to better technology c)An increase in the use of agricultural land for non-agricultural purposes

Suppose Z is a normal good.The equilibrium price and equilibrium quantity of Z in the year 2013 was $25 and 60 units,respectively.In 2017,the equilibrium price of Z had decreased to $15 and the equilibrium quantity had also decreased to 50 units.Other things remaining the same,which of the following could explain this change?

Scenario: Suppose that the government imposes a price control on gasoline where the legal price is set at $1.50 per gallon while the equilibrium price would be $2.25. A shortage ensues. Worried that you may not have enough gas to commute to school and do errands, you get up before dawn to go to a gas station to fill up the tank. But you find yourself waiting in a long line. Fortunately, the station did not run out of gas before your turn came up, and you were happy to drive away with a full tank. -Refer to the scenario above.The shortage results because ________.

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 ________.

The table below provides supply schedules for small, average, and large soybean growers in Iowa. -Refer to the table above.Which producer exhibits the greatest increase in quantity supplied for a $1.00 per bushel increase in the price of soybeans?

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.What is the surplus in the market when the price of a notebook is $9?

At the competitive equilibrium,the ________.