Exam 3: Demand and Supply: An Elaboration

The data shows the demand and supply for wheat: quantity of bushels per year (in million) -Refer to the information above to answer this question.What would be the farmers' revenue from the sale of the wheat in the market if the price floor is $16 per bushel of wheat?

The data shows the market for daycare workers in a particular city: (quantity of workers in hundreds) -Refer to the information above to answer this question.What are the implications if this market is in equilibrium?

What is the term for the sale of a product abroad for a lower price than is being charged in the domestic market?

All of following except one are possible methods of allocation.Which is the exception?

The following data shows the market for soccer balls: -Refer to the above information to answer this question.Assume that initially the market is in equilibrium and the demand and supply both increase by 20 units.What will be the new equilibrium price and quantity?

Table 3.2 depicts the market for magnets in the country of Skyland. Table 3.2 a)What is the present equilibrium price and quantity traded in this market? b)How much in total are buyers paying for the magnets? c)Suppose that the government introduces a price ceiling of $5 per unit.What quantity will buyers be purchasing? How much in total will magnet buyers now be paying? d)What will be the total amount of shortage? e)Suppose after the imposition of the price ceiling,the demand in Skyland decreases by 40,000 units.What is the new equilibrium price and quantity traded?

-A shortage is caused by either a decrease in demand or an increase in supply.

-Explain what the government could do with agricultural surpluses that might result from price ceilings.

Distinguish between a price control and a quota.

-Refer to the above graph to answer this question.What will be the result if the producer prices this product at $7,000.

-Refer to the graph above to answer this question.What is the illegal price if a quantity of 25 only is available?

-What is a price floor? What happens to the relationship between quantity demanded and supplied with an effective price floor?

In the short term,how does competitive housing real-estate market react during a natural disaster?

Below is the hypothetical demand for water in a particular country (price per 50 liters): -Refer to the above information to answer this question.Suppose that the present supply of 120 is cut by 80.What effect will this have on the price?

The data shows the demand and supply for sugar: quantity of kilograms (in thousand per week) -Refer to the information above to answer this question.How many kilograms of sugar would be sold in the market if the government's price floor is set at $3 per kilogram?

-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $6.What will be the cost to the government of purchasing any surplus?

What is meant by rationing?

Assume X and Y are complementary goods.An increase in the population and an increase in the price of Good Y will increase the demand for Good X.True,false,or uncertain.Explain.

-Refer to the graph above to answer this question.What is the effect of a price ceiling of $6?