ECON 1123 Test 2 Study

Which of the following statement is true? A. binding price ceiling will always cause the quantity demanded to exceed the quantity supplied B. A government price control will always cause the quantity demanded to exceed the quantity supplied C. Equilibrium is attained when prices are not allowed to respond to market pressure D. A government price control can be used to bring markets into equilibrium

A. binding price ceiling will always cause the quantity demanded to exceed the quantity supplied .

Market demand is derived by ________ A. fixing the price and adding up the quantities that each buyer demands B. adding up both the prices each buyer pays and the quantities that each buyer demands C. fixing the quantity and adding up their prices that each buyer pays D. dividing each buyer's demand by the total number of consumers in the market.fixing the price and adding up the quantities that each buyer demands

A. fixing the price and adding up the quantities that each buyer demands

The supply curve represents the minimum price sellers are willing to accept to sell an extra unit of a good the minimum price buyers are willing to pay to buy an extra unit of a good . the maximum price buyers are willing to pay to buy an extra unit of a good . the maximum price sellers are willing to accept to sell an extra unit of a good .

A. the minimum price sellers are willing to accept to sell an extra unit of a good

Does the shape of the market demand curve differ from the shape of an individual demand curve? A. No , they both tend to be upward - sloping curves B. No , they both tend to be downward - sloping curves C. Yes, individual curves tend to be upward - sloping , while market demand curves are horizontal D. Yes , individual demand curves tend to be downward - sloping, while market demand curves are upward - sloping

B. No , they both tend to be downward - sloping curves .

Suppose the university is trying to determine the most efficient way to allocate the rooms such that those who value the rooms the most get them . Which of the following would you suggest as the most efficient ? Using a random lottery to allocate rooms , with each student having equal odds of receiving a room . Allocating rooms based on senickity . Seniors get first choice , then juniors , and so on . Auctioning the rooms to the highest bidders . Allocating rooms based on grades , with students with the highest GPAs getting first choice .

C. Auctioning the rooms to the highest bidder

In a perfectly competitive market , sellers and buyers ______ A. cannot charge more than the market price ; are able to pay less than the market price B. are able to charge more than the market price ; cannot pay less than the market price C. cannot charge more than the market price ; cannot pay less than the market price D. are able to charge more than the market price ; are able to pay less than the market price

C. cannot charge more than the market price ; cannot pay less than the market price

Suppose a new off - campus university apartment complex could rent its rooms on the open market for $ 900 a month . If , instead , the university chooses to cap the price of rooms to $ 500 a month for students , the result would be that quantity demanded would exceed the quantity supplied , resulting in a surplus . quantity supplied would exceed the quantity demanded , resulting in a surplus . quantity demanded would exceed the quantity supplied , resulting in a shortage . quantity supplied would exceed the quantity demanded , resulting in a shortage .

C. quantity demanded would exceed the quantity supplied , resulting in a shortage

Helium is lighter than air and thus can be used to make party balloons float . Helium is also an inert gas that is vital for many industrial applications ( such as medical imaging technology that require achieving super low temperatures . This relatively new industrial application for helium has caused the demand for helium to _________ . This has resulted in a / an ________in the price of party balloons since helium is a / an ________for these balloons

D. increase: increase: input

In a perfectly competitive market , if one seller chooses to charge a price for its good that is slightly higher than the market price , then it will ________ A. All of the above are equally likely B. see a small decrease in its number of customers C. see no change in its number of customers D. lose all or almost all of its customers

D. lose all or almost all of its customers