Exam 5: Markets in Action

Narrbegin Exhibit 4.5 Supply and demand data for cars $\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Cars demanded } \\\text { per manth }\end{array} & \begin{array} { c } \text { Price per } \\\text { car (\$) }\end{array} & \begin{array} { c } \text { Cars supplied } \\\text { per manth }\end{array} \\\hline 50 & 50 \text { 000 } & \text { 80 } \\\hline 55 & 40 \text { 000 } & 75 \\\hline 60 & 30000 & 70 \\\hline 65 & 20000 & 65 \\\hline 70 & 10000 & 55 \\\hline\end{array}$ Narrend -In Exhibit 4.5, the equilibrium price is:

Unintended costs that are imposed on third parties as a result of an economic activity are called:

Which of the following would be a private cost to a cigarette smoker?

One likely result of a price ceiling is that:

Price floors are instituted because the government wants to:

If the government imposes a price ceiling, then:

Which of the following would result in a temporary surplus of desk top computers at the price associated with the initial equilibrium?

Which of the following would be a social cost?

Narrbegin Exhibit 4.3 Demand and supply curves -In Exhibit 4.3, the demand curve has shifted from D₁ to D₂ and, simultaneously, the supply curve has shifted from S₁ to S₂. Describe these actions in this market.

Pete throws leftover bread onto his front lawn because he enjoys watching the pigeons feeding. His neighbour, John, is not happy about the pigeons, since they leave a mess on his property. This is an example of:

If the demand increases but supply decreases, then:

Assume a ceiling price is set above the equilibrium price. The final result is the equilibrium price.

If the demand curve increases while the supply curve remains unchanged, the equilibrium price would increase.

If the government prevents the market price from rising above $10, it can set a/an:

If the free market is called upon to provide public goods, then:

Ceteris paribus, an increase in the supply of a good causes which of the following?

Price floors are used as a method to:

When there are positive externalities associated with the consumption of a good, we can expect:

A price floor is:

Narrbegin Exhibit 4.2 Supply and demand curves -The market shown in Exhibit 4.2 is initially in equilibrium at E₃. Changes in market conditions result in a new equilibrium at E₄. This change is stated as a/an: