Exam 3: Markets, Demand and Supply, and the Price System

Last year a firm made 1,000 units of its product available at a price of $5 per unit.This year the firm will still make 1,000 units available,but only if the price is $7 per unit.What is most likely to have happened?

The change in the quantity demanded of any good is always caused by:

Inferior goods are low quality goods that people prefer to buy less of.

The downward slope of the demand curve is attributed to:

Identify the correct statement.

The table given below reports the quantity demanded and supplied of a commodity in a market at different price levels. Table 3.4 -Refer to Table 3.4.In the market represented by this table,at equilibrium:

Empirical evidence suggests that more digital cameras are being sold today than one year ago,and the selling price has decreased.The probable reason for this could have been an increase in supply.

According to the law of demand,when the price of a BMW or a Gucci purse increases,the quantity demanded of these goods will also increase because consumers consider them prestigious.

The market supply curve for any product:

The below figure shows the demand and supply curves in the market for gasoline.The price and quantity at the point of intersection of the demand and supply curves is $30 and 300 gallons respectively. Figure 3.6 -Assume that the market for gasoline in Figure 3.6 is in equilibrium.What is the most likely consequence of a government-imposed price ceiling at $10 per unit?

The output level that occurs in any market that is in equilibrium:

The table given below reports the quantity of bread loaves demanded and supplied at different per unit prices. Table 3.3 -According to Table 3.3,equilibrium in the market for bread occurs at the price of:

The exchange of goods and services directly without money is called:

In a market where the price is restricted by price floors or price ceilings,

A sharp increase in gasoline prices will cause the supply curve for trucking services to shift to the right.

When will a shortage occur in a market?

Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles.Which of the following is expected to take place?

It is absolutely necessary for at least one trader to have money for barter exchange to take place.

Other things remaining the same,an individual demand schedule shows the various quantities of a good:

In the market for eggs,a removal of the price ceiling on eggs results in: