Exam 2: Supply and Demand

What is the total market supply,Qs,for luxury sports cars in the United States if the only three suppliers inverse supply functions are P = -10 + 5Qs₁,P = 20 + 5Qs₂,P = 5Qs₃?

Suppose the market demand curve for apples can be expressed as Q^D = 220 - 2P - Pb + 0.2Y,where Q^D is the quantity of apples demanded,P is the price of an apple,Pb is the price of a banana,and Y is the average annual household income in thousands of dollars.What is the change in the quantity demanded of apples if the income increases by $10,000?

Suppose that government decides to create a license for widget makers.Only licensed widget makers are allowed to produce widgets.Moreover,only half of the current widget producers are eligible to obtain the license.What will happen with the supply curve of widgets?

Lionfish is an aquatic invasive species in the southeastern U.S.and the Caribbean.Current removal policies focus on harvesting the lionfish for human consumption.Assuming that lionfish is a substitute for snapper,what will likely happen to fishing efforts for lionfish if the price of snapper increases?

If a demand curve shifts left,it implies

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

In the labor market,if the government imposes a minimum wage that is below the equilibrium wage,then

Suppose the market for potatoes can be expressed as follows: Supply: Q^S = -20 + 10p Demand: Q^D = 400 - 20p Suppose the government restricts the quantity to 100 units.What will be the price of potatoes?

Lionfish is an aquatic invasive species in the southeastern U.S.and the Caribbean.Current removal policies focus on harvesting the lionfish for human consumption.Assuming that lionfish is an inferior good,what will likely happen to fishing efforts if income increases?

-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 computer manuals after technological advances in making computers occur?

Suppose a market is currently at equilibrium.A leftward shift of the demand curve would cause

Suppose the market for a good is expressed as follows: Inverse demand: P = 200 - 2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units?

Usury laws place a ceiling on interest rates that lenders such as banks can charge borrowers.The interest rate is the price of a loan.Graph a binding usury law on the market for loans,and describe the effects of the law on the quantity of loans supplied and the quantity of loans demanded.

If oranges were found to cure cancer,

A market equilibrium occurs

Which of the following cultural events likely increased the demand for the associated product?

During a mild winter,the price of home heating oil is expected to be less than it would be during a normal winter.

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for vacations on Mars?

Suppose the market demand curve for tacos can be expressed as Q^D = 120 - 3P - Pb,where Q^D is the quantity of tacos demanded,P is the price of a taco,and Pb is the price of a burrito.What is the relationship between burritos and tacos,from the point of view of consumers?

The price of crude oil increased to $100 per barrel in early 2008.What would we expect to see happen to the supply of gasoline,which is produced using crude oil?