macroeconomics quiz 3

A price ceiling in a market is always set below the market clearing price. As a result, price ceilings create [Y]. surpluses shortages equilibriums debt

A price ceiling in a market is always set below the market clearing price. As a result, price ceilings create shortages.

A surplus in a market arises because [X] exceeds [Y]. And, we know that in a perfectly competitive market, a surplus will tend to push the price [Z] quantity demanded quantity supplied down up

A surplus in a market arises because quantity supplied exceeds quantity demanded. And, we know that in a perfectly competitive market, a surplus will tend to push the price down.

The determinants of demand include: a. tastes, income, technology, and factor costs b. tastes, income, expectations, and number of buyers c. number of sellers, factor costs, and technology d. national deficit, wage costs, utility costs, market structure

b. tastes, income, expectations, and number of buyers

Assume equilibrium price in a market is $29. And, assume we have normal looking demand and supply curves. At all prices ABOVE the equilibrium price is must be the case that: a. quantity demanded exceeds quantity supplied b. quantity demanded equals quantity supplied c. quantity supplied exceeds quantity demanded d. none of the above

c. quantity supplied exceeds quantity demanded

Assume we have a market that is in equilibrium. As a result of a widespread public announcement that the good in this market is suspected to cause adverse health effects, we'd expect that the demand for this good will decrease. CETERIS PARIBUS, this would shift the demand curve to the [X] and [Y] the equilibrium price of this good. right left increase decrease

Assume we have a market that is in equilibrium. As a result of a widespread public announcement that the good in this market is suspected to cause adverse health effects, we'd expect that the demand for this good will decrease. CETERIS PARIBUS, this would shift the demand curve to the left and decrease the equilibrium price of this good.

The term "ceteris paribus" is an assumption made in economics that means nothing else changes. True False

true

The law of demand implies that the quantity of a good [X] in a given time period increases as its price [Y], ceteris paribus. supplied demanded rises falls

The law of demand implies that the quantity of a good demanded in a given time period increases as its price falls, ceteris paribus.