CHAPTER 3
Which of the following graphs represents an increase in supply in a given market?
THE GRAPH MOVES TO THE LEFT
Which of the following statements best represents the law of demand? If the price of sports shoes increases, Bella will purchase fewer pairs per year. If the price of sports shoes is $80 on average, Bella will purchase 2 pairs per year. Manufacturers of sports shoes increase their production as the price of those items rises. Bella gets a job with a company that has a stricter dress code and reduces her purchases of sports shoes to afford dressier shoes.
If the price of sports shoes increases, Bella will purchase fewer pairs per year.
Which of the following describes a supply curve?
PriceQuantity$150$2100$3150$4200$5250$6300$7350$8400$9450 Correct. The data represents a direct relationship between price and quantity.
A market is most efficient when
Social or economic surplus is maximized Correct.
Which of the following events would increase the demand for cruise vacations? The popularity of cruises rises after a successful marketing campaign. The economy is slowing, unemployment increases and average income falls. The price of air travelling decreased significantly. The price of cruises falls
The popularity of cruises rises after a successful marketing campaign. Correct.
The supply of new houses in Houston is best described as
The quantity of new houses that builders are willing and able to build at various prices in a given period of time. Correct.
Consider the market for cheese. If the price of milk increases, what will be the consequences?
The supply of cheese would fall. Correct.
Consider a market with an equilibrium price of $10. If the government imposes a price ceiling of $8, other things equal, the result will be as follow:
A shortage will occur because the price ceiling is below the equilibrium price. Correct.
Consider the market for air travel. If airport fees rise and cause the price of plane tickets to rise, All answers are correct It will cause consumers to travel less by plane and more by car. It will cause airlines to lower the number of flights they offer. It will cause buyers and sellers in the market to adjust their behavior.
All answers are correct Correct. It will cause consumers to travel less by plane and more by car. It will cause airlines to lower the number of flights they offer. It will cause buyers and sellers in the market to adjust their behavior.
The market equilibrium for milk in your city can best be described as follows: When the demand and supply of milk intersect, at a price where the quantity demanded and supplied of milk are the same The price and quantity at which milk producers will earn the highest profit. The difference between the quantity demanded for milk and the quantity supplied at the equilibrium price. When the market is balanced at the price that benefits milk buyers the most.
When the demand and supply of milk intersect, at a price where the quantity demanded and supplied of milk are the same Correct.
