Chapter 4 Section 3 1st 27

If there is a surplus of tacos, then the A) quantity of tacos demanded equals the quantity of tacos supplied. B) quantity of tacos demanded is greater than the quantity of tacos supplied. C) quantity of tacos demanded is less than the quantity of tacos supplied. D) market is at equilibrium. E) supply curve of tacos will shift leftward to eliminate the surplus.

C

In the figure above, a price of $35 per dozen roses results in A) a shortage. B) equilibrium. C) a surplus. D) upward pressure on the price of roses. E) an eventual rightward shift of the demand curve and/or leftward shift of the supply curve.

C

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a A) shortage, so the price falls and quantity demanded increases. B) surplus, so the price falls and quantity demanded increases. C) shortage, so the price rises and quantity demanded decreases. D) surplus, so the price rises and quantity demanded increases. E) surplus, so the price falls and quantity supplied increases.

B

The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.62, then A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium.

B

Using the data in the table above, if the price of a stapler is $8, then there is ________ of staplers and the quantity of staplers demanded ________ the quantity of staplers supplied. A) a surplus; is greater than B) a surplus; is less than C) a shortage; is greater than D) a shortage; is less than E) neither a surplus nor a shortage; equals

B

When a surplus of rice occurs, A) the price of rice rises. B) the price of rice falls. C) there is a balance between the forces of supply and demand. D) the quantity demanded is greater than quantity supplied at the current price. E) the demand curve shifts rightward and the supply curve shifts leftward to eliminate the surplus.

B

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place? A) There is a shortage, so the price falls and quantity demanded increases. B) There is a surplus, so the price falls and quantity demanded increases. C) There is a shortage, so the price rises and quantity demanded decreases. D) There is a shortage, so the price rises and quantity demanded increases. E) There is a shortage, so the price falls and quantity demanded decreases.

C

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price a A) shortage exists, and the price falls to restore equilibrium. B) shortage exists, and the price rises to restore equilibrium. C) surplus exists, and the price falls to restore equilibrium. D) surplus exists, and the price rises to restore equilibrium. E) surplus exists, but nothing happens until either the demand or the supply changes.

C

Using the data in the table above, at the price of $80 a phone, A) a shortage of 25,000 cellular telephones occurs. B) a surplus of 80,000 cellular telephones occurs. C) a surplus of 25,000 cellular telephones occurs. D) a shortage of 55,000 cellular telephones occurs. E) the market is in equilibrium.

C

Using the data in the table above, if the price of a stapler is $5, then there is ________ of staplers, and the quantity of staplers demanded ________ the quantity of staplers supplied. A) a surplus; is greater than B) a surplus; is less than C) a shortage; is greater than D) a shortage; is less than E) neither a surplus nor a shortage; equals

C

Market equilibrium i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii only B) iii only C) ii and iii D) i only E) i and ii

A

Market equilibrium occurs when A) the quantity demanded equals the quantity supplied. B) the market is changing rapidly. C) other things remain the same. D) buyers get the lowest possible price. E) everyone who wants the good gets the quantity he or she wants.

A

If the price is below the equilibrium price, A) there is a surplus. B) there is a shortage. C) the supply curve will shift rightward. D) the supply curve will shift leftward. E) the demand curve will shift leftward.

B

The above figure shows the market for game day t-shirts. If the price of t-shirts is $10, then A) there is a surplus and the price of t-shirts will rise. B) there is a shortage and the price of t-shirts will rise. C) there is a shortage and the price of t-shirts will fall. D) there is a surplus and the price of t-shirts will fall. E) the market is in equilibrium.

E

The above figure shows the market for game day t-shirts. If the price of t-shirts is $8, then A) there is a shortage and the price of t-shirts will rise. B) there is a surplus and the price of t-shirts will rise. C) the market is in equilibrium. D) there is a shortage and the price of t-shirts will fall. E) there is a surplus and the price of t-shirts will fall.

A

The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.73, then A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) there is neither a surplus nor a shortage, but the market is NOT in equilibrium.

A

A surplus of cardboard boxes means that A) at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied. B) at the current price of a cardboard box, the quantity demanded is less than the quantity supplied. C) the current price of a cardboard box is less than the equilibrium price. D) at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium. E) More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.

B

As a falling price eliminates a surplus in the jersey market, A) the demand curve for jerseys shifts leftward, and the supply curve of jerseys shifts rightward. B) consumers increase the quantity of jerseys they demand. C) producers increase the quantity of jerseys they supply. D) producers decrease the quantity of jerseys they supply, and buyers decrease the quantity of jerseys they demand. E) the demand curve for jerseys shifts rightward, and the supply curve of jerseys shifts leftward.

B

In the figure above, a price of $15 per dozen roses results in A) equilibrium. B) a shortage. C) a surplus. D) downward pressure on the price of roses. E) an eventual leftward shift of the demand curve and/or rightward shift of the supply curve.

B

Market equilibrium occurs when A) all markets become equal. B) the quantity demanded equals the quantity supplied. C) opposing forces pull demand and supply apart. D) demand and supply move in opposite direction. E) demand and supply change so that they are equal at all possible prices.

B

If the price of carrots is below the equilibrium price, the A) quantity demanded of carrots exceeds the quantity supplied, and a surplus exists. B) quantity supplied of carrots exceeds the quantity demanded, and a surplus exists. C) quantity demanded of carrots exceeds the quantity supplied, and a shortage exists. D) quantity supplied of carrots exceeds the quantity demanded, and a shortage exists. E) quantity supplied of carrots equals the quantity demanded.

C

The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.65, then A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) there is neither a surplus nor a shortage but the market is NOT in equilibrium.

C

Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone are A) 50,000 and $100. B) 80,000 and $80. C) 60,000 and $50. D) 40,000 and $20. E) 100,000 and $20.

C

The above figure shows the market for game day t-shirts. If the price of t-shirts is $12, then A) there is a shortage and the price of t-shirts will fall. B) there is a shortage and the price of t-shirts will rise. C) there is a surplus and the price of t-shirts will rise. D) there is a surplus and the price of t-shirts will fall. E) the market is in equilibrium.

D

Using the data in the table above, the equilibrium quantity and equilibrium price for a stapler is A) 10,000 and $8. B) 90,000 and $8. C) 100,000 and $5. D) 70,000 and $6. E) 60,000 and $5.

D

When there is a shortage of parking spaces at your college, the A) demand for parking spaces is greater than the supply. B) supply of parking spaces is greater than the demand. C) quantity of parking spaces supplied is greater than the quantity of parking spaces demanded. D) quantity of parking spaces demanded is greater than the quantity of parking spaces supplied. E) Both answers A and D are correct.

D

When there is a surplus of snowboards, the A) demand for snowboards is greater than the supply of snowboards. B) supply of snowboards is greater than the demand for snowboards. C) quantity of snowboards demanded is greater than the quantity of snowboards supplied. D) quantity of snowboards supplied is greater than the quantity of snowboards demanded. E) price rises to restore the equilibrium.

D