Econ Final Quiz 2
If the university president valued parking spot close to building at $500 an dpaid $30 for a parking permit he would receive consumer surplus equal to ...?
$470
Why does supple slope up?
At higher process suppliers can profitably produce using more expensive techniques and inputs
Suppose the equilibrium price in a market is $10. if the current market price is $7.50.....
Competition between buyers will increase the current price
why is the demand curve for oil negatively sloped? As price of oil rises...
Consumers increasingly use oil only for the purposes without good substitutes
What is consumer surplus?
Gains from trade on the part of the consumer that results in a market transaction
An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity?
The equilibrium price decreases, and the change in equilibrium quantity is uncertain.
A market can be described by the equations Qd=100-P and Qs=P. What are the equilibrium price and quantity in this market?
The equilibrium price is $50 and the equilibrium quantity is 50 units.
Laboratory experiments by vernon smith support...
The supply and demand model usefulness in predicting changes in free market
why is consuming a quantity above equilibrium wasteful?
because resources are used without making society better off
The key condition for equilibrium to occur in a market is
quantity demanded equals quantity supplied
The arab oil embargo of 1973 and iranian revolution and gulf war all affected oil process by ....
reducing the supply of oil
A shortage of a good occurs when
the quantity supplied is less then the quantity demanded