Exam 3: Markets and the Price System

The table given below represents the supply schedules of the only three DVD producers in the market for DVDs.Table 3.2 -According to Table 3.2, if the supply schedules 1, 2, and 3 are the market supply schedules for DVDs in three different time periods, what could explain the change from the Supply 1 schedule to the Supply 2 schedule?

When a market is in surplus, there is pressure for the price to move upward.

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:

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 -In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers.

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

The figure given below represents the equilibrium in the market for bicycles under different demand and supply situations. The vertical axis in each panel shows the price of bikes.Figure 3.2 -Refer to Figure 3.2. Which of the following panels represents the equilibrium situation in the bicycle market, if there were an increase in the price of metal used in the production of bicycles?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Which of the following determines the quantity demanded of a commodity?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -The term barter refers to exchanges made:

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?

An example of barter is voluntary work at an old-age home.

The demand schedule shows that the price of a good and quantity demanded are directly related to each other.

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -The demand curve of a commodity slopes downward because of:

The table given below represents the supply schedules of the only three DVD producers in the market for DVDs.Table 3.2 -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?

The figure given below shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves.Figure 3.5 ​ -When will a shortage occur in a market?

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -Refer to Table 3.1. If Quantity Demanded 1, Quantity Demanded 2, and Quantity Demanded 3 are market demand schedules, then the change from Quantity Demanded 1 to Quantity Demanded 2 may have been due to:

The figure given below shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves.Figure 3.5 ​ -Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

A supply curve slopes downward because of the law of supply.

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

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

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?