AGRI Macro chapter 4 homework

The Law of Demand states that as the price of a good​ increases, ceteris paribus​, the __________________ decreases. This can be shown graphically with _______________ demand curve or numerically in a table using a ______________ . The relationship that exists between these two variables can be described as__________

-quantity demanded ,a downward-sloping, demand schedule -negatively related

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.)dividing each​ buyer's demand by the total number of consumers in the market. D.)fixing the quantity and adding up the prices that each buyer pays. Does the shape of the market demand curve differ from the shape of an individual demand​ curve? A.)Yes, individual demand curves tend to be​ upward-sloping, while market demand curves are horizontal. B.)Yes, individual demand curves tend to be​ downward-sloping, while market demand curves are​ upward-sloping. C.)No, they both tend to be​ downward-sloping curves. D.)No, they both tend to be​ upward-sloping curves.

A,C

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​ ____________. A.)quantity demanded would exceed the quantity​ supplied, resulting in a surplus. B.)quantity demanded would exceed the quantity​ supplied, resulting in a shortage. C.)quantity supplied would exceed the quantity​ demanded, resulting in a shortage. D.)quantity supplied would exceed the quantity​ demanded, resulting in a surplus.

B

Which of the following is not one of the five major factors that shifts the demand curve when it​ changes? A.)The number of buyers. B.)The price of the good itself. C.)The price of complementary goods. D.)Income and wealth.

B

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? A.)Using a random lottery to allocate​ rooms, with each student having equal odds of receiving a room. B.)Allocating rooms based on​ grades, with students with the highest GPAs getting first choice. C.)Auctioning the rooms to the highest bidders. D.)Allocating rooms based on seniority. Seniors get first​ choice, then​ juniors, and so on.

C

Which of the following is not one of the four major factors that shifts the supply curve when it​ changes? A.)Technology used in production. B.)Sellers' beliefs about the future. C.)The income of consumers. D.)The number of sellers. When one of the four major factors​ changes, causing an increase in​ supply, the supply curve shifts _______________ .

C,rightward

B,B

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.)cannot charge more than the market​ price; cannot pay less than the market price. C.)are able to 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. 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.)see a small decrease in its number of customers. B.)lose all or almost all of its customers. C.)see no change in its number of customers. D.)All of the above are equally likely.

A

Which of the following is not a characteristic of a​ market? A.)Markets are physical locations where trading occurs. B.)Voluntary exchanges between economic agents C.)Flexible prices D.)There are rules and arrangements for trading

A

Which of the following statements correctly describes a perfectly competitive​ market? A.)All participants in a perfectly competitive market are price-takers. B.)Buyers in a perfectly competitive market pay different prices according to their individual demand. C.)Haggling and bargaining is commonly observed in a perfectly competitive market. D.)In a perfectly competitive​ market, individual sellers and buyers can influence the market price.

Are all markets perfectly​ competitive? A.)Yes, any economic system with a market structure is by definition perfectly competitive. B.)No, there are also command and control markets that are run by a central government. C.)No, there are other market types where firms have considerable power to control the price. D.)​No, in other types of​ markets, sellers offer identical goods and simply accept the market price.

c

As a firm produces more of a​ good, the cost of producing each additional unit _____________ . This implies that the marginal cost of producing a good ___________________ as you make more of that good. The supply curve represents​ ___________. A.)the minimum price sellers are willing to accept to sell an extra unit of a good. B.)the minimum price buyers are willing to pay to buy an extra unit of a good. C.)the maximum price sellers are willing to accept to sell an extra unit of a good. D.)the maximum price buyers are willing to pay to buy an extra unit of a good.

increases,increases, A

The Law of Supply states that as the price of a good​ increases, ceteris paribus​, the ______________________ of that good increases. This can be shown graphically with _________________________ supply curve or numerically in a table using a _________________ . The relationship that exists between these two variables can be described as ___________________ .

quantity supplied,an upward-sloping,supply schedule, positively related