Exam 3: Demand, Supply, and Market Equilibrium

Assume that the graphs show a competitive market for the product stated in the question. Select the graph above that best shows the change in the market specified in the following situation: In the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations.

Attaining "allocative efficiency" means that:

If the government subsidizes the car makers in the production of cars, then the supply of steel increases.

One objection to a competitive and legal market for human organs for transplant is that it would:

There is a surplus of tomatoes in the market. This implies that:

If the price of Pepsi decreases, other factors constant, then we'd expect to see a consequent shift of the demand curve for:

Refer to the four graphs above. Select the graph that best shows the changes in demand and supply in the market specified in the following situation: In the market for beef, if a new diet fad favoring beef consumption becomes hugely popular, while cattle producers see steeply rising costs of cattle feed.

A black market could arise as a result of:

Refer to the above table. A surplus of 500 units will occur when the price is:

Which of the following statements about ticket scalping is correct?

A decrease in the prices of computer chips for PCs will increase the supply of PCs.

In cases where sellers have a fixed number of units of a product to sell, the supply curve will be horizontal.

Which of the following would best be classified as a complement for new houses/homes?

If the price of gasoline increases significantly, then we'd expect the demand curve for large trucks and SUVs to:

If a price ceiling is set below the equilibrium price in a market:

A leftward shift of the supply curve for oil in the United States is most likely to result from:

A market for a product reaches equilibrium when:

Which of the following will not cause a change in the demand for product A?

A government-set price floor on a product:

Refer to the four graphs above. Select the graph above that best shows the changes in demand and supply in the market specified in the following situation: In the market for music CDs sold in stores, if more consumers switch to music-downloads from the Internet, and the cost of making music CDs decreases because of technological improvement in production.