*Chapter 3 (Where Prices Come From) // *Chapter 4 (Economic Efficiency, Government Price Setting, and Taxes)
Which of the following would cause an increase in the supply of cheese?
An increase in the number of firms that produce cheese.
The market for smartphones has become very competitive. The increase in competition in this market is an example of how the market responds to...
Changes in consumer tastes.
The additional cost to a firm of producing one more unit of a good or service is the...
Marginal cost
In order to be binding, a price floor...
Must lie above the free market equilibrium price.
At market equilibrium,...
Quantity demanded equals quantity supplied.
If in the market for bananas the supply curve has shifted to the right, then...
The supply of bananas increased.
When ____ in a market, the total net benefit to society is maximized.
a competitive equilibrium is achieved
The minimum wage is an example of...
a price floor.
When the marginal benefit equals the marginal cost of the last unit sold in a competitive market...
an economically efficient level of output is produced.
Which of the following will not shift the demand curve for a good?
an increase in the price of the good
Holding everything else constant, a decrease in the price of GPS systems will result in...
an increase in the quantity of GPS system demanded.
The law of demand implies, holding everything else constant, that as the price of yogurt...
increases, the quantity of yogurt demanded will decrease.
The area above the market supply curve and below the market price...
is equal to the total amount of producer surplus in a market.
Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline,...
the supply curve shifted to the left resulting in an increase in the equilibrium price.