Question 1

-The above figure shows a graph of a market for pizzas in a large town.At a price of $10,the market

Accepted Answer

A)  is not in equilibrium. 
B)  has excess supply. 
C)  does not have excess demand. 
D)  All of the above. 
A)  is not in equilibrium. 
B)  has excess supply. 
C)  does not have excess demand. 
D)  All of the above.

Question 2

When "rent controls" result in a shortage of housing,landlords

Accepted Answer

A)  use criteria other than price to allocate housing. 
B)  lower the price to allocate the housing. 
C)  attempt to attract renters. 
D)  None of the above. 
A)  use criteria other than price to allocate housing. 
B)  lower the price to allocate the housing. 
C)  attempt to attract renters. 
D)  None of the above.

Question 3

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

Accepted Answer

A)  no pizzas supplied. 
B)  equilibrium. 
C)  excess supply. 
D)  excess demand. 
A)  no pizzas supplied. 
B)  equilibrium. 
C)  excess supply. 
D)  excess demand.

Question 4

A rightward shift of the supply curve will lead to a(n)

Accepted Answer

A)  decrease in equilibrium price. 
B)  excess supply at the old equilibrium price. 
C)  increase in quantity demanded. 
D)  All of the above. 
A)  decrease in equilibrium price. 
B)  excess supply at the old equilibrium price. 
C)  increase in quantity demanded. 
D)  All of the above.

Question 5

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?

Accepted Answer

The slope is -2.The slope tells us how a

Question 6

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.

Accepted Answer

@#IMG-DLM& See the above figure.At the suburban sh

Question 7

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

Accepted Answer

A)  Q = 5p - 100. 
B)  Q = 20 - .2p. 
C)  p = 20 - 5Q. 
D)  p = 20 - .2Q. 
A)  Q = 5p - 100. 
B)  Q = 20 - .2p. 
C)  p = 20 - 5Q. 
D)  p = 20 - .2Q.

Question 8

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

Accepted Answer

A)  shift right. 
B)  shift left. 
C)  remain unchanged. 
D)  remain unchanged while quantity demanded would change. 
A)  shift right. 
B)  shift left. 
C)  remain unchanged. 
D)  remain unchanged while quantity demanded would change.

Question 9

Horizontally summing different supply curves assumes

Accepted Answer

A)  that individual firms cannot influence the good's price. 
B)  that all firms operate in collusion. 
C)  that only firms who volunteer are included in the summation. 
D)  all firms produce the same amount of output. 
A)  that individual firms cannot influence the good's price. 
B)  that all firms operate in collusion. 
C)  that only firms who volunteer are included in the summation. 
D)  all firms produce the same amount of output.

Question 10

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for workers at your nearest fast-food restaurant?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  None of the above. 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  None of the above.

Question 11

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

Accepted Answer

A)  increase by 20. 
B)  decrease by 30. 
C)  increase by 30. 
D)  decrease by 10. 
A)  increase by 20. 
B)  decrease by 30. 
C)  increase by 30. 
D)  decrease by 10.

Question 12

A drought in the Midwest will raise the price of wheat because of a

Accepted Answer

A)  leftward shift in the supply curve. 
B)  rightward shift in the supply curve. 
C)  leftward shift in the demand curve. 
D)  rightward shift in the demand curve. 
A)  leftward shift in the supply curve. 
B)  rightward shift in the supply curve. 
C)  leftward shift in the demand curve. 
D)  rightward shift in the demand curve.

Question 13

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

Accepted Answer

A)  an increase in price but a decrease in quantity. 
B)  a decrease in price but an increase in quantity. 
C)  an increase in both price and quantity. 
D)  a decrease in both price and quantity. 
A)  an increase in price but a decrease in quantity. 
B)  a decrease in price but an increase in quantity. 
C)  an increase in both price and quantity. 
D)  a decrease in both price and quantity.

Question 14

Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a

Accepted Answer

A)  vertical line where Q = 10. 
B)  vertical line where Q = 100. 
C)  vertical line where Q = 1000. 
D)  horizontal line where Q = 1000. 
A)  vertical line where Q = 10. 
B)  vertical line where Q = 100. 
C)  vertical line where Q = 1000. 
D)  horizontal line where Q = 1000.

Question 15

Holding all other factors constant,consumers demand more of a good the

Accepted Answer

A)  higher its price. 
B)  lower its price. 
C)  steeper the downward slope of the demand curve. 
D)  steeper the upward slope of the demand curve. 
A)  higher its price. 
B)  lower its price. 
C)  steeper the downward slope of the demand curve. 
D)  steeper the upward slope of the demand curve.

Question 16

-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?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D

Question 17

It is appropriate to use the supply-and-demand model in which of the following markets?

Accepted Answer

A)  beer market 
B)  car market 
C)  wheat market 
D)  market for breakfast cereal 
A)  beer market 
B)  car market 
C)  wheat market 
D)  market for breakfast cereal

Question 18

Suppose there is a linear downward-sloping demand curve and a linear upward-sloping supply curve for a good.The price of a substitute good increases and the price of an input to production also increases.Graph the original demand and supply curves,and the curves after the substitute good and input prices increase.How will the equilibrium price change after the substitute and input prices increase?

Accepted Answer

@#IMG-DLM& See the above figure.The new demand cur

Question 19

A price restriction that tells suppliers the minimum price they can sell their goods for is also known as

Accepted Answer

A)  a price ceiling. 
B)  a quota. 
C)  a price floor. 
D)  deadweight loss. 
A)  a price ceiling. 
B)  a quota. 
C)  a price floor. 
D)  deadweight loss.

Question 20

Costs that pertain to finding a trading partner and making a trade are called

Accepted Answer

A)  transaction costs. 
B)  transgression costs. 
C)  consumption costs. 
D)  transaction taxes. 
A)  transaction costs. 
B)  transgression costs. 
C)  consumption costs. 
D)  transaction taxes.

-The above figure shows a graph of a market for pizzas in a large town.At a price of $10,the market

When "rent controls" result in a shortage of housing,landlords

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

A rightward shift of the supply curve will lead to a(n)

Suppose the market demand curve for pizza can be expressed as Q^D = 100 - 2P + 3Pb,where Q^D is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

Horizontally summing different supply curves assumes

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for workers at your nearest fast-food restaurant?

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

A drought in the Midwest will raise the price of wheat because of a

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a

Holding all other factors constant,consumers demand more of a good the

-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?

It is appropriate to use the supply-and-demand model in which of the following markets?

A price restriction that tells suppliers the minimum price they can sell their goods for is also known as

Costs that pertain to finding a trading partner and making a trade are called

Introduction

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 2: Supply and Demand

-The above figure shows a graph of a market for pizzas in a large town.At a price of $10,the market

When "rent controls" result in a shortage of housing,landlords

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

A rightward shift of the supply curve will lead to a(n)

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb,where QD is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.

If the demand for oranges is written as Q = 100 - 5p,then the inverse demand function is

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

Horizontally summing different supply curves assumes

-The above figure shows three different supply-and-demand graphs.Which graph best represents the market for workers at your nearest fast-food restaurant?

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

A drought in the Midwest will raise the price of wheat because of a

Suppose a market were currently at equilibrium.A rightward shift of the demand curve would cause

Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a

Holding all other factors constant,consumers demand more of a good the

-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?

It is appropriate to use the supply-and-demand model in which of the following markets?

A price restriction that tells suppliers the minimum price they can sell their goods for is also known as

Costs that pertain to finding a trading partner and making a trade are called

Introduction

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Suppose the market demand curve for pizza can be expressed as Q^D = 100 - 2P + 3Pb,where Q^D is the quantity of pizza demanded,P is the price of a pizza,and Pb is the price of a burrito.What is the slope of this demand function,and what information does the slope provide?