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 Charlotte's NBA franchise,the Charlotte Hornets,decides to relocate to Seattle,Washington.How will the city's loss of this professional sports franchise affect demand for MLB game attendance in Charlotte?

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.

The table below provides supply schedules for small, average, and large soybean growers in Iowa. -Refer to the table above.The Iowa soybean producer with the lowest willingness to accept is the ________.

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.

Assume that a worker in a technology firm can produce 3 circuit boards in an hour.Due to subsequent innovation,she is now able to produce 6 circuit boards per hour.Other things remaining the same,the firm's supply curve is likely to ________.

Which of the following pairs of goods is likely to be considered complements?

Assume that the supply curve for a commodity shifts to the right and the demand curve shifts to the left,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by ________.

A fall in the price of flour,used in making cakes,is likely to ________ of cakes.

In a perfectly competitive market,the market clearing price is ________ the equilibrium price.

Explain how the following will affect the supply curve of coffee. a)A fall in the wages paid to coffee workers b)An increase in the availability of high-yielding coffee plants c)A decrease in the quantity of land under coffee cultivation

Las Vegas,Nevada,is a popular vacation destination for residents of Hawaii.If the Hawaiian economy experiences strong economic growth and,as a result,household incomes increase on average by 10 percent,what will likely happen to the demand for airplane tickets from Hawaii to Las Vegas?

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

Which of the following factors is expected to cause the demand curve for coffee to shift to the right?

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.What is the change in the quantity demanded in the market if the price of Gatorade falls from $4 per 20-ounce bottle to $3 per 20-ounce bottle?

Which of the following is a feature of a perfectly competitive market?

The Law of Supply states that ________.

The following figure shows the demand curves for pens for two consumers. Assuming that the market consists of only these two consumers,what is the market demand for pens when the price is $4?

The numbers in the table below characterize the market for raccoon skins in Minnesota during the 2010-2011 trapping season. The demand schedule that prevailed in November and December of 2010 is denoted by "Original Quantity Demanded," and the demand schedule that prevailed from late January onward is denoted by "Quantity Demanded-Late January." -Refer to the table above.Given the original demand,at a price of $18 per raccoon skin,there is a ________.

During the Battle of the Bulge in December 1944,American soldiers near Bastogne,Belgium,offered as much as $73 for a can of Campbell's soup that sold for $0.13 in U.S.grocery stores ($73 was nearly an entire month's pay for an army sergeant at that time).These large amounts of money offered for soup represent a(n)________.

Which of the following examples best approximates a competitive market?