econ u2-hw b
When the supply curve shifts to the left and there is no change in demand:
the equilibrium price will rise.
Refer to the accompanying figure. The equilibrium price is ______, and the equilibrium quantity is ______.
$35; 20
Refer to the figure below. There would be an excess supply of 25 at a price of ______.
$50
Which of the following factors will lead to a decrease in the current supply of a good?
A belief that the price of a good or service will go up in the future
Suppose Bianca buys a used a textbook from Sebastian for $55. If Bianca's surplus from this transaction was $10, we can infer that:
Bianca's reservation price was $65.
Suppose that the equilibrium price of apples decreases and the equilibrium quantity of apples increases. This is best explained by:
an increase in the supply of apples.
Refer to the given table. Relative to column A, column B represents:
a decrease in supply.
Suppose you observe a decrease in the equilibrium price and quantity of corn. Of the options listed below, this is best explained by:
a fall in consumer income assuming corn is a normal good.
Refer to the accompanying figure. At a price of $9, there will be:
an excess supply of 5 units.
When the demand curve shifts to the right and supply doesn't change:
equilibrium quantity will rise.
Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 illustrates a(n):
increase in demand.
If supply increases and demand decreases, the new equilibrium price will be ______ and the new equilibrium quantity will be ______.
lower; uncertain
Buyers and sellers of a particular good make up the:
market for the good.
A market equilibrium might not maximize total economic surplus because:
sometimes goods entail costs and benefits that do not fall on buyers and sellers. Correct
Refer to the accompanying figure. If demand shifts from D1 to D2, and at the same time, supply shifts from S1 to S2, then according to the figure:
the equilibrium quantity will increase and the equilibrium price will increase.
