Exam 3: Markets and the Price System

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?

The below figure shows the demand and supply of DVD rentals in a city. S₁ and D₁ are the original supply and demand curves. The demand curve shifts from D₁ to D₂.Figure 3.4 -Refer to Figure 3.4 and identify the true statement.

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 table given below reports the quantity demanded and supplied of a commodity at different prices in a market.Table 3.5 -Refer to Table 3.5. If government imposes a price floor of $2:

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 ​ -A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?

A price control always benefits consumers.

A rent control law, where tenants pay below-market rents, is a market restriction that may induce a decrease in the supply of rented apartments.

The market demand curve is derived by summing individual demand curves horizontally.

In the figure given below, D₁ and S₁ are the original demand and supply curves.Figure 3.1 -Refer to Figure 3.1. Given D₁, if supply moves from S₁ to S₂ it implies:

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -_______ ensure that resources are allocated to where they are most highly valued.

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -The relationship between prices and the corresponding quantities supplied is shown in a:

If demand increases and supply decreases, then equilibrium price must decrease, but equilibrium quantity is indeterminate.

According to the law of supply, if the price of calculators decrease, the supply of calculators will decrease, everything else held constant.

If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase.

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -The amount of a product that people are willing and able to purchase at a specific price is referred to as the:

In the figure given below, D₁ and S₁ are the initial demand and supply curves for a commodity in the market.Figure 3.3 ​ -If both supply and demand for a good increase, which of the following will definitely happen?

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -Which of the following will cause an inward shift in the demand for steaks at a restaurant?

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4 -Barter can best be defined as:

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -Assume that a hurricane in Brazil destroys half of the coffee crop. Considering that Brazil is a major coffee producing country, consumers expect the price of coffee to increase in the near future. How does this reflect on the demand for coffee?

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1 -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?