Demand, Supply, and Prices
Which of the following price / output points would be found on the market supply schedule used to create the market supply curve below?
5.00/3,000
Which of the following explains why a free market economy is more efficient than a centrally planned economy?
A. It relies on prices to allocate resources
Which of the following would cause comsumers to demand fewer slices of pizza
An increase in the price of pizza slices
How are price ceilings and price floors similar?
Both bring about disequilibrium in the market.
Which of the following situations reflects the substitution effect resulting from a special sale on Z brand golf balls
Consumers purchase Z Balls rather than the brand they normally buy
Which of the following is the likely result of a successful advertising campaign of a electronic game?
Demand curve that shifted to the right
Which of the following is generally true after a shift in supply or demand?
Equilibrium is gradually restored.
According to the NBER study, what will happen if a major supplier of oil cuts productions, causing the price of gasoline to increase greatly
Gasoline consumption will decrease by a small amount
Which of the following BEST explains how the situation shown in the graph affects producers and consumers
It benefits neither, because consumers must pay more and producers must throw out excess supply.
How does the addition of the fifth worker affect the number of beanbags produced per hour?
It increases production by 5 beanbags
How would a new government subsidy for rice farmers affect the market for rice?
It would increase the supply by decreasing rice farmers' production costs.
What can you say about the Larvines demand at the Japanese restaurant
It's elastic- a small increase in price resulted in a large decrease in consumption
Jenna could afford to buy a new houseplant every 3 months. So,rhino happened in Jenna's life to force the demand curve for plants up to the right.
Jenna buys a new plant each month
According to this table, what number of beanbags per hour would be the BEST level of production from a firm's point of view? Why?
10 per hour- profit is at its highest
How many slices of pizza per day would you expect a pizzeria in this market to sell if it were pricing it's slices at 3.50?
175
Read each question and choose the best answer. Falling prices caused quantity demanded to rise and quantity supplied to fall until, once again, they were equal. Which of the following might have forced a firm to cut prices in this scenario?
a surplus in the market
Based on these graphs, which of the following BEST describes equilibrium?
the point at which the demand and supply both equal 200
When warfare cut off some of the supply of a rare metal used in making cellphones, one firm's marginal cost rose higher than its marginal revenue. Which of the following events in the graph is the most likely result of this event
the shift of the supply curve to the left
At what point should the owners of a failing factory shut it down?
when revenue per hour is lower than operating cost per hour
Based on this graph, after adding the eighth worker, what is the beanbag company's owner MOST LIKELY going to do
Reduce the workforce
Which of the following signals does the image below give to consumers?
You seem to be getting a good price on this product.
Read each question and choose the best answer. A change in the cost of an input can decrease quantity supplied. As the supply curve shifts to the left, suppliers raise their prices, and the quantity demanded falls. After the movement described above, where will the new equilibrium point be?
at a spot along the demand curve above and to the left of the original equilibrium point
Suppose that, at the regular price of $50 for a package of six, the supply of LED light bulbs was 100. After the price decreased to $40, the supply increased to 200. Which of the following BEST describes the elasticity of supply for the light bulbs?
D. It is elastic; the elasticity of supply equals 5.
A wildfire put a major lumber producer out of business, how might an economist show a consequence on a graph
Supply curve shifted to the left
With best restates the point made in the statement below? The most famous law in economics and the one that economics are most sure of, is the law of demand. On this law is built almost the whole edifice of economics.
THe way markets respond to change in price is highly predictable
