Quiz 03 - Demand and Supply

The table shows information on the conditions of demand and supply for designer purses, where the quantity of designer purses is measured in thousands. Choose the correct category for each price. Price $500 - Quan. Demanded 490 - Quan. Supplied 420 Price $700 - Quan. Demanded 450 - Quan. Supplied 450 Price $900 - Quan. Demanded 400 - Quan. Supplied 520 Price $1,100 - Quan. Demanded 320 - Quan. Supplied 650 Price $1,300 - Quan. Demanded 220 - Quan. Supplied 700 A. Excess demand or shortage B. Excess supply or surplus C. Equilibrium

$500 - A. Excess demand or shortage $700 - C. Equilibrium $900 - B. Excess supply or surplus $1,100 - B. Excess supply or surplus $1,300 - B. Excess supply or surplus

AS AIRLINES INCREASE THE NUMBER OF PREMIUM SEATS FOR SALE (ALL ELSE EQUAL, c.p.), WHAT HAPPENS TO THE EQUILIBRIUM PRICE AND QUANTITY OF PREMIUM SEAT TICKETS? A. PRICE INCREASES; QUANTITY INCREASES. B. PRICE DECREASES; QUANTITY INCREASES. C. PRICE INCREASES; QUANTITY DECREASES. D. PRICE DECREASES; QUANTITY DECREASES. E. PRICE IS UNCHANGED; QUANTITY INCREASES

B. PRICE DECREASES; QUANTITY INCREASES.

MEMORY CHIPS, A KEY COMPONENT IN PORTABLE HARD DRIVES, HAVE FALLEN IN PRICE. WHAT HAPPENS TO THE SUPPLY OF PORTABLE HARD DRIVES? A. SUPPLY DOES NOT CHANGE. B. SUPPLY SHIFTS TO THE RIGHT. C. SUPPLY SHIFTS TO THE LEFT. D. QUANTITY SUPPLIED DECREASES ALONG SUPPLY CURVE. E. QUANTITY SUPPLIED INCREASES ALONG SUPPLY CURVE.

B. SUPPLY SHIFTS TO THE RIGHT.

At Tokyo Disneyland, visitors often have to wait more than three hours to enjoy a three-minute ride. In general, what are the key determinants of demand for a good or service in this instance? Check all that apply. A. People's preferences B. Price of related goods C. Income D. Producer's expectations E. Number of buyers

A. People's preferences C. Income E. Number of buyers

Because Tokyo Disneyland charges a fixed admission fee for unlimited rides, shortages of rides occur. In general, what happens to prices when shortages of a good or service persist? A. Prices are bid up toward equilibrium. B. Prices are bid down toward equilibrium. C. Prices remain constant. D. Prices fall to zero. E. Not enough information to answer.

A. Prices are bid up toward equilibrium.

Which of the following would NOT shift the demand for Orange Juice? A. NEW RESEARCH SHOWS THE BENEFITS OF ORANGE JUICE. B. THE OVERALL POPULATION INCREASES. C. PRICE OF APPLE JUICE, A SUBSTITUTE, FALLS. D. LEVEL OF GOVERNMENT SUBSIDIES TO FARMERS RISES. E. CONSUMER INCOMES RISE.

D. LEVEL OF GOVERNMENT SUBSIDIES TO FARMERS RISES.

RAMEN NOODLES ARE HEAVILY PROCESSED AND NOT VERY NUTRITIOUS. IT IS TYPICALLY VERY FILLING, AND VERY INEXPENSIVE, A FAVORTIE OF POOR COLLEGE STUDENTS. WHAT HAPPENS TO EQUILIBRIUM PRICE AND QUANTITY FOR RAMEN NOODLES IF INCOMES ARE FALLING? A. THE EQUILIBRIUM PRICE DECREASES AND QUANTITY INCREASES. B. THE EQUILIBRIUM PRICE INCREASES AND QUANTITY DECREASES. C. THE EQUILIBRIUM PRICE AND QUANTITY BOTH DECREASE. D. THE EQUILIBRIUM PRICE AND QUANTITY BOTH INCREASE. E. NOTHING WILL HAPPEN TO PRICE OR QUANTITY.

D. THE EQUILIBRIUM PRICE AND QUANTITY BOTH INCREASE.

The accompanying table contains the individual demand schedules of dark chocolate for Vanessa and Angela. Assuming they are the only people in the market for dark chocolate, how much is the market demand at for dark chocolate at $8 and at $1, respectively? A. 4 & 8 pounds B. 8 & 16 pounds C. 10 & 18 pounds D. 18 & 10 pounds E. 4 & 16 pounds

E. 4 & 16 pounds

WHICH OF THE FOLLOWING WAS NOT A CONTRIBUTING FACTOR TO THE SHORTAGE OF TOILET PAPER DURING THE COVID-19 PANDEMIC? A. HOUSEHOLDS USED MORE TOILET PAPER AT HOME INSTEAD OF TOILET PAPER IN PUBLIC PLACES. B. THE INCREASE IN DEMAND FOR TOILET PAPER GREATLY EXCEEDED THE INCREASE IN SUPPLY. C. CONSUMERS EXPECTED THE PRICE OF TOILET PAPER TO RISE. D. SOME INDIVIDUAL CONSUMERS BOUGHT MORE TOILET PAPER THAN USUAL (HOARDING). E. BUSINESSES WERE PRICING TOILET PAPER MUCH HIGHER THAN THE EQUILIBRIUM PRICE.

E. BUSINESSES WERE PRICING TOILET PAPER MUCH HIGHER THAN THE EQUILIBRIUM PRICE.

MEMORY CHIPS, A KEY COMPONENT IN PORTABLE HARD DRIVES, HAVE RISEN IN PRICE. WHAT HAPPENS TO THE SUPPLY OF PORTABLE HARD DRIVES? A. QUANTITY SUPPLIED DECREASES ALONG SUPPLY CURVE. B. SUPPLY SHIFTS TO THE RIGHT. C. QUANTITY SUPPLIED INCREASES ALONG SUPPLY CURVE. D. SUPPLY DOES NOT CHANGE. E. SUPPLY SHIFTS TO THE LEFT.

E. SUPPLY SHIFTS TO THE LEFT.