Exam 2: Supply and Demand

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?

-The above figure shows the market for crude oil.If the oil exploration firms convince the government to set a minimum price of $4 per barrel,then

-The above figure shows the supply and demand curves for rice in the U.S.and in Japan.Assume there is no trade between the two countries.If bad weather causes the supply curves in each country to shift leftward by the same amount,then

The demand equation Q=.5p⁻.⁷⁵ is equivalent to the log-linear demand equations

Suppose the market for grass seed can be expressed as: Demand: Qᴰ = 100 - 2p Supply: Qˢ = 3p Price elasticity of supply is constant at one.If the demand curve is changed to Q = 10 - .2p,price elasticity of demand at any given price is the same as before.Yet the incidence of a tax falling on consumers will be higher.Why?

How will a decrease in price affect a firm's revenues?

If the demand curve for a good is horizontal and the price is positive,then a leftward shift of the supply curve results in

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for typewriters after technological advances in computerized word-processing software occur?

In the mid-1980s,the salaries of accounting professors with Ph.D.s increased dramatically.This resulted in an increase in enrollments in Ph.D.accounting programs.Since a Ph.D.degree in accounting may take at least four years to complete,the short-run elasticity of supply of accounting professors is

The demand curve for Widgets is given by QD = 5800 - 200p + 30pG where QD is the quantity of widgets demanded,y is the per capital income and pG is the price of Gizmos.The supply of Widgets is given by: QS = 250p - 1250 a.Solve for the equilibrium price and quantity of widgets in terms of the price of Gizmos. b.Compute the comparative static derivatives for the changes in the equilibrium price and quantity of Widgets with respect to a change in the price of Gizmos.

For the following, please answer "True" or "False" and explain why. -When a market is in disequilibrium consumers and producers change their behavior.As a result the market reaches equilibrium.

If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price,

Suppose the market for potatoes can be expressed as follows: Supply: Qˢ = -20 + 10p Demand: Qᴰ = 400 - 20p If the government sets a maximum price of $10 per unit,what will be the quantity demanded and quantity supplied?

For the following, please answer "True" or "False" and explain why. -Because demand curves slope downward according to the Law of Demand,the price elasticity of demand is a negative number.

Consumers will always pay the entire amount of a specific tax whenever

Suppose that a market has the following supply and demand equations: Demand: Qᴰ = 380 - 10p Supply: Qˢ = 80 + 5p If the government imposes a specific tax of τ on suppliers,what will be the price buyers pay and sellers receive,quantity,and government revenue from the tax (as functions of τ).What tax level maximizes the revenue the government collects from the tax?

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computers after technological advances in making computers occur?

If the demand curve is vertical a rightward shift of the supply curve will lead to

If the price of orange juice rises 10%,and as a result the quantity demanded falls by 10%,then one can conclude that the demand for orange juice

A rise in the oil price will