ECON SUPPLY & DEMAND

A market surplus of 2000 units would occur at a price of

$0.60 per unit

in the absence of any price controls, the market will reach equilibrium at a price of

$200 and a quantity of 600

The equilibrium price of a dozen roses is ___ and the equilibrium quantity of roses is ___ dozen

$25; 200

what is the equilibrium price of good X?

$5

There will be a surplus of 400 units of X at a price of ___

$8

Which of the following would be expected to cause the demand for fish to decrease?

A study claiming that fish contain a high level of contaminants that may cause cancer

Ceteris paribus, the demand for Dallas area public transportation is likely to increase (shift to the right) if:

All of the above

Which of the following best explains a decrease in the supply of video games

All of the above

A price of $25 per dozen roses results in a ___ of ___ dozen roses

shortage ; 200

If demand increases from D1 to D2 but the price remains the same as in number 38 above, then there will be a :

shortage equal to the distance q4-q2

At a price of $5, there is a ___ of ___ units of X

shortage; 200

If suppliers decrease the amount of output they are willing and able to make available for sale at all prices, then:

supply decreases and the supply curve shifts left

in October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?

supply shifts to the right

Ceteris paribus, an increase in the number of suppliers in a market causes:

supply to shift right and equilibrium price falls and equilibrium quantity rises

A price of $75 per dozen roses results in a ___ of ___ dozen roses

surplus; 200

If the cost of producing good decreases at the same time good Z becomes more popular, then the graphing model of supply and demand predicts that:

the equilibrium quantity of good Z will increase but the equilibrium price of good Z could increase, decrease, or stay the same

At a price of $0.45 per unit

the market is in equilibrium

an example of an existing price floor in the U.S. is

the minimum wage

According to the law of supply, an increase in the price of smart phones will cause:

the quantity supplied of smartphones to increase, ceteris paribus

Ceteris paribus, advancements (increases) in production technology cause:

the supply curve to shift rightward

suppose government has established a price floor at $0.60 per unit. if the demand for this product decreases

the surplus that existed in this market will be eliminated

When a competitive equilibrium is achieved in a market

the total net benefit to society is maximized

If government established a price ceiling of $100 in this market

there would be a surplus of 200 units

An increase in demand would be shown by a movement from

D1 to D2

A decrease in the price of a complementary good would be represented by a change from:

D1toD2

A decrease in the price of a substitute good would be represented by a change from:

D2 to D1

If the product represented is a normal good, a decrease in income would be represented by a change from:

D2 to D1

If this market is represented by D1 and S1, then equilibrium price is ___ and equilibrium quantity is ___

P2; Q2

if people increase their performances for electric vehicles versus vehicles powered by gasoline, what will happen to the equilibrium price and quantity of electric vehicles, ceteris paribus?

Price and quantity both increase

a movement from point c to point e along S2 is caused by

a decrease in price which will lead to a decrease in quantity supplied

The law of demand states that an increase in the price of a haircut, ceteris paribus, leads to

a decrease in the quantity demanded of haircuts

Ceteris paribus, a decrease in the price of coats leads to:

a decrease in the quantity supplied of coats

the relationship between price and the amount of a good or service consumers are willing and able to buy is given by:

a demand curve

Ceteris paribus, a decrease in the wages paid to autoworkers leads to:

a rightward shift (increase) in the supply of autos

When the price of a product is below the equilibrium price and prices are flexible:

a shortage exists and price will rise

Which of the following is most likely to cause a rightward shift from S1 to S2

an improvement in production technology

which of the following would cause both P* and Q* of potatoes (an inferior good) to decrease

an increase in consumer income

the shift from D1 to D2 might have come about due to:

an increase in consumer income if this good is an inferior good

A movement from point b to point a along D1 is caused by:

an increase in the price of the product

if an increase in income leads to a decrease in the demand for popcorn, then popcorn is

an inferior good

Government could set a price ___ at $.30 per unit, which would lead to a ___

ceiling; shortage in the amount of 2000 units

Ceteris paribus, a decrease in the number of camera manufacturers leads to:

decrease in the supply to cameras

A decrease in supply would be shown by moving from point

e to point a

Ceteris paribus, when a decrease in consumer income causes demand to decrease:

equilibrium price and equilibrium quantity decrease

what will happen to the equilibrium price and quantity of orange juice if a sudden winter freeze destroys half of Floridas orange crop, ceteris paribus?

equilibrium price rises and equilibrium quantity falls

A decrease in the number of sellers in a market that occurs at the same time that there is an increase in the number of buyers in that market will cause:

equilibrium price to increase, but the change in equilibrium quantity cannot be determined without further information

suppose the above graph represents the market for carrots, if the governments goal is to keep the price of carrots at $0.60 per unit, then government will likely:

impose a price floor at $0.60 per unit

the law of demand illustrates the:

inverse (negative) relationship between price and quantity demanded

If government established a price floor of $200 in this market:

it would not have an impact on this market

Which of the following events would cause the demand for baseball gloves to decrease

none of the above

The law of supply states that, everything else constant:

price and quantity supplied move in the samedirection.

Government may impose at price ceiling in the market for a particular good or service in order to:

protect some buyers in that market