Achieve Chapter 4
According to a 2016 article in the Wall Street Journal, "after years of relative equilibrium, the job market for nurses is heating up in many markets, driving up wages and sign-on bonuses for the nation's fifth-largest occupation". Many nurses who had delayed their retirement due to the 2008 recession began to retire, resulting in a retirement wave that caused nurses to exit the workforce in greater numbers than the new nurses were entering. At the same time, demand for nurses had increased due to the additional health care coverage associated with job growth over the previous decade since the recession and the Affordable Care Act. The developments described have a __________ effect on the equilibrium wages of nurses
positive
Consider the following data from the market demanded and supply for apartments _________________________________________________________ $ Demanded Supplied ________________________________________________________ $2,000 5,000 23,000 _________________________________________________________$1,800 8,000 20,000 _________________________________________________________ $1,600 11,000 17,000 _________________________________________________________ $1,400 14,000 14,000 _________________________________________________________ $1,200 17,000 11,000 _________________________________________________________ $1,000 20,000 8,000 _________________________________________________________ What do you expect to happen to the average rent?
rise
The fidget spinner toy fad is over, and children are not buying them with the same enthusiasm as they did earlier. What would a graph look like that depicts the situation in the market for fidget spinners
the supply stays the same but the demand shifts to the left which shows a decrease in the demand
For the following situations determine whether supply, demand, or both shifted and how During the winter, the number of daily air routes between Denver and Aspen, Colorado, increases, as does the price of a ticket. In this instance, the _________________ must have
- demand - risen
When you arrive at a gas station, there is a line of cars wrapped around the block waiting for gas, so you go to the gas station down the road only to find another line of cars! You get in line and end up waiting over an hour just to get to the pump and be told that they've run out of gas. This market is __________________ because ___________________________________________
- not in equilibrium - people are still willing and able to purchase gasoline, even though the quantity supplied has been exhausted
If the supply of green tea rises, the equilibrium quantity will _____________, and the equilibrium price will ______________. This is because ___________________________
- rise - fall - the equilibrium quantity moves down the demand curve to a lower price and a higher quantity demanded
Use the table to answer the question about supply and demand for Blu-ray movies _________________________________________________________ $ Demanded Supplied _________________________________________________________ $15 40 80 _________________________________________________________ $12 50 70 _________________________________________________________$10 60 60 _________________________________________________________ $7 70 50 _________________________________________________________ $5 80 40 _________________________________________________________ What is the equilibrium price per movie?
$10
Consider the following data from the market demanded and supply for apartments _________________________________________________________ $ Demanded Supplied ________________________________________________________ $2,000 5,000 23,000 _________________________________________________________$1,800 8,000 20,000 _________________________________________________________ $1,600 11,000 17,000 _________________________________________________________ $1,400 14,000 14,000 _________________________________________________________ $1,200 17,000 11,000 _________________________________________________________ $1,000 20,000 8,000 _________________________________________________________ What is the equilibrium rent in this market?
$1400
Fuel efficenty regulations reduce the use of steel in automobile production and increase the use of lighter materials such as aluminum. Also, increased import restrictions have been imposed that limit the amount of steel that can be imported in the US. How would this affect a graph showing the market for steel in the US?
- the supply curve is going to move to the left showing a decrease in the supply of steel in the US - the demand curve is going to move to the left as well, showing a decrease in the demand for steel in the US
Consider the following data from the market demanded and supply for apartments _________________________________________________________ $ Demanded Supplied ________________________________________________________ $2,000 5,000 23,000 _________________________________________________________$1,800 8,000 20,000 _________________________________________________________ $1,600 11,000 17,000 _________________________________________________________ $1,400 14,000 14,000 _________________________________________________________ $1,200 17,000 11,000 _________________________________________________________ $1,000 20,000 8,000 _________________________________________________________ Suppose that the average monthly rent for apartments is $1,200. At this price how many apartments will be rented in this market?
11,000
Consider the following data from the market demanded and supply for apartments _________________________________________________________ $ Demanded Supplied ________________________________________________________ $2,000 5,000 23,000 _________________________________________________________$1,800 8,000 20,000 _________________________________________________________ $1,600 11,000 17,000 _________________________________________________________ $1,400 14,000 14,000 _________________________________________________________ $1,200 17,000 11,000 _________________________________________________________ $1,000 20,000 8,000 _________________________________________________________ Is the market currently in equilibrium, experiencing a shortage or experiencing a surplus?
Shortage
According to a 2016 article in the Wall Street Journal, "after years of relative equilibrium, the job market for nurses is heating up in many markets, driving up wages and sign-on bonuses for the nation's fifth-largest occupation". Many nurses who had delayed their retirement due to the 2008 recession began to retire, resulting in a retirement wave that caused nurses to exit the workforce in greater numbers than the new nurses were entering. At the same time, demand for nurses had increased due to the additional health care coverage associated with job growth over the previous decade since the recession and the Affordable Care Act. the developments described have an ___________ effect on the equilibrium quantity of nurses
indeterminate
Use the table to answer the question about supply and demand for Blu-ray movies _________________________________________________________ $ Demanded Supplied _________________________________________________________ $15 40 80 _________________________________________________________ $12 50 70 _________________________________________________________$10 60 60 _________________________________________________________ $7 70 50 _________________________________________________________ $5 80 40 _________________________________________________________At the price of $12 per movie (a ) a surplus of 20 movies can occur (b) a shortage of 50 movies occur (c) a shortage of 20 movies occurs (d) A surplus of 70 movies occur (e) equilibrium is reached
(a) a surplus of 20 movies occurs
You and other college students are deciding whether to major in music or Engerineering. You learn that there is a shortage of engineers, making it easy for engineering graduates to find employment, while there is a glut of musicians for whom finding a job is difficult. As a result, you and many other college students decided to major in engineering. Which economic principal does this illustrate? (a) markets tend to move towards equilibrium and individuals respond to incentives (b) individuals so not normally take into account the decisions of other individuals (c) changes in incentives are unlikely to change the decisions people make (d) Government intervention can improve efficiency when there is market failure (e) Specialization leads to economic efficiency
(a) markets tend to move towards equilibrium as individuals respond to incentives
What will happen in the market for clothing when a major department store shifts its production of clothing to a low-labor-cost county? (a) the lower cost of production will lead to an increase in supply and a fall in the price of clothing (b) supply will remain unchanged, and so there will be no change in the price of clothing (c) buyers will stop buying clothing from this department store (d) the shift in production will lead to a decrease in supply and a rise in the price of clothing
(a) the lower cost of production will lead to an increase in supply and a fall in the price of clothing
If there is a technological advance in the production of Amazon Echo smart speaker, you would expect to see ___________ overtime (a) a fall in the equilibrium quantity sold (b) no change in it's equilibrium price (c) a rise in it's equilibrium price (d) a fall in it's equilibrium price
(d) a fall in its equilibrium price
What happens to the equilibrium price and quantity when demand decreases and at the same time supply increases, but the relative size of the shifts are not known? (a) the equilibrium price rises and the change in the equilibrium quantity is ambiguous (b) the equilibrium quantity rises and the change in the equilibrium price is ambiguous (c) the equilibrium quantity falls, and the change in the equilibrium price is ambiguous (d) the equilibrium price falls and the change in the equilibrium quantity is ambiguous
(d) the equilibrium price falls and the change in equilibrium quantity is ambiguous
You are studying the international market for coffee. The world production for coffee beans increases, and at the same time, consumers worldwide start favoring tea over coffee. What is the effect on the equilibrium price and the equilibrium quantity in the coffee market? (a) the equilibrium price rises and the equilibrium quantity falls (b) the equilibrium price falls and the equilibrium quantity rises (c) the equilibrium quantity falls and the change in the equilibrium price is ambiguous (d) the equilibrium price falls and the change in the equilibrium quantity is ambiguous
(d) the equilibrium price falls and the change in the equilibrium quantity is ambiguous
What happens to the equilibrium price and the equilibrium quantity when demand and supply increase simultaneously, but the relative size of shifts are not known? (a) the equilibrium price falls, and the change in the equilibrium quantity is ambiguous (b) the equilibrium quantity falls, and the change in the equilibrium price is ambiguous (c) the equilibrium price rises, and the change in the equilibrium quantity is ambiguous (d) the equilibrium quantity rises, and the change in the equilibrium price is ambiguous
(d) the equilibrium quantity rises, and the change in the equilibrium price is ambiguous
For the following situations determine whether supply, demand, or both shifted and how From January through April in the United States, personal certified public accountants (CPAs) see a dramatic increase in their number of billable hours, but the average hourly rate of a CPA remains the same. In this instance, ______________ must have _________
- Demand and Supply - risen
Suppose that a rise in the average income increases the demand for preventative dental visits The increase in income leads to an increase in ________________. This is because, as demand increases, ______________________________________________
- Quantity supplied - the equilibrium quantity moves up the supply curve to a higher price and more quantity supplied
Income declines due to a recession. Also, Norwegian Airlines adds more US cities to it's list of international flight destinations. The developments described have ______________ effect on the equilibrium price of international fights and ____________ effect on the equilibrium quantity
- a negative - an indeterminate
Fuel efficiency regulations reduce the use of steel in automobile production and increase the use of lighter materials such as aluminum. Also, increased import restrictions have been imposed that limit the amount of steel that can be imported in the US. The developments described have ______________ effect on the equilibrium price of steel and __________ effect on the equilibrium quantity
- an indeterminate - a negative
Suppose that a rise in the average income increases the demand for preventative dental visits. Will this shift the supply curve, demand curve or both and what ways will they shift?
- demand - a shift to the right - an increase in demand
According to a 2016 article in the Wall Street Journal, "after years of relative equilibrium, the job market for nurses is heating up in many markets, driving up wages and sign-on bonuses for the nation's fifth-largest occupation". Many nurses who had delayed their retirment due to the 2008 recession began to retire, resulting in a retirement wave that caused nurses to exit the workforce in greater numbers than the new nurses were entering. At the same time, demand for nurses had increased due to the additional health care coverage associated with job growth over the previous decade since the recession and the Affordable Care Act. What way would the supply, demand, or both curves shift in this situation?
- shift of the supply to the left which is a decrease - shift of supply to the right which leads to an increase
For the following situations determine whether supply, demand, or both shifted and how Over the last decade, the price of hybrid electric vehicles decreases, while the number of hybrid vehicles sold increeased. In this instance, ____________ must have _______________
- supply - Risen
Income declines due to a recession. Also, Norwegian Airlines adds more US cities to its list of international flight destinations. What effect will this gave on the graph for the market for international flights?
- the demand will shift to the left showing a decrease in demand - the supply curve will shift to the right showing an increase in supply in the market
Consider the following data from the market demanded and supply for apartments _________________________________________________________ $ Demanded Supplied ________________________________________________________ $2,000 5,000 23,000 _________________________________________________________$1,800 8,000 20,000 _________________________________________________________ $1,600 11,000 17,000 _________________________________________________________ $1,400 14,000 14,000 _________________________________________________________ $1,200 17,000 11,000 _________________________________________________________ $1,000 20,000 8,000 _________________________________________________________ What is the equilibrium quantity in this market?
14,000
in 2017, Kenya banned the use of disposable plastic shopping bags due to concern over plastic pollution. What would a graph look like that depicts the country's market for reusable cloth bags?
The supply will stay the same but the demand will shift to the right causing an increase in demand