ECON Micro Market Equilibrium

Use the following graph for a competitive market to answer the question below. Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The amount of the tax paid by the consumer is Multiple Choice $2.25. $1.25. $1.00. Correct $0.

$1.00.

Use the following graph for a competitive market to answer the question below. Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The price the seller receives for the product after paying the tax is Multiple Choice $1.25. Correct $2.50. $3.50. $2.25.

$1.25.

Use the following graph for a competitive market to answer the question below. Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax paid by the seller is Multiple Choice $8. $3. $2. Correct $1.

$2.

Use the following table to answer the question below. Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500 A surplus of 500 units will occur when the price is Multiple Choice $10 per unit. $15 per unit. $20 per unit. $30 per unit. Correct

$30 per unit.

Use the following graph for a competitive market to answer the question below. Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the seller receives for the product after the tax is imposed on the buyer is Multiple Choice $8. $7. $5. Correct $3.

$5.

Use the following graph for a competitive market to answer the question below. Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The government's tax revenue is Multiple Choice $1,050. $900. $675. Correct $375.

$675.

Use the following graph for a competitive market to answer the question below. Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The government's tax revenue is Multiple Choice $2,400. $2,100. $900. Correct $600.

$900.

Which is most likely to be observed in a community where price ceilings are imposed on residential rents? Multiple Choice Poor people will be able to find adequate housing. Homeowners will reduce their own use of housing space, making more available to others. Those whose needs for housing are most urgent will be able to obtain the space they want. People moving into the community will have difficulty locating residential space to rent. Correct

People moving into the community will have difficulty locating residential space to rent.

What might happen to the equilibrium price and quantity of Disney World tickets if Universal Studios offers discounts to families? Multiple Choice Price of Disney World tickets decreases, and quantity bought increases Price of Disney World tickets increases, and quantity bought increases Price of Disney World tickets increases, and quantity bought decreases Price of Disney World tickets decreases, and quantity bought decreases Correct

Price of Disney World tickets decreases, and quantity bought decreases

How have companies like Uber and Lyft affected the ride-sharing market? Multiple Choice Price and quantity of the rides have increased. Price and quantity of the rides have decreased. Price of the rides increased, and the quantity of rides have decreased. Price of the rides decreased, and the quantity of rides have increased. Correct

Price of the rides decreased, and the quantity of rides have increased.

How might a problem like the Bird Flu which can make thousands of birds sick and scare consumers about possible problems with eating items like chicken or eggs affect the market for chicken? Multiple Choice Quantity decreases and price is indeterminate Correct Quantity increases and price is indeterminate Price increases and quantity is indeterminate Price decreases and quantity is indeterminate

Quantity decreases and price is indeterminate

Because of the popularity of the movie "Frozen," there is a large increase in demand for the merchandise, there is also many new companies producing items from backpacks, to dresses, to "Frozen" themed food items. How has this affected the market for "Frozen" merchandise? Multiple Choice Quantity decreases and price is indeterminate. Quantity increases and price is indeterminate. Correct Price increases and quantity is indeterminate. Price decreases and quantity is indeterminate

Quantity increases and price is indeterminate.

Nebraska had an unseasonable cold winter requiring more salt for the roads than normal. If the supply does not change what would happen to the market for salt? Multiple Choice The increased demand but no change in quantity supplied causes a surplus of salt. The increased demand but no change in quantity supplied causes a shortage of salt. Correct There is no change in the market. There will be more suppliers of salt at every price.

The increased demand but no change in quantity supplied causes a shortage of salt.

Use the following table to answer the question below. (1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040 Suppose that market demand is represented by two demanders in columns (1) and (2) and market supply is represented by two suppliers in columns (4) and (5). If the price were artificially set at $6 Multiple Choice the market would clear. a surplus of 50 units would occur. a shortage of 110 units would occur. Correct demand would change from (2) to (1).

a shortage of 110 units would occur.

Use the following graph for a competitive market to answer the question below. In a market with supply and demand curves as shown above, a price floor of $2.50 will result in Multiple Choice a surplus of 10 units. Correct a shortage of 10 units. no shortage or surplus. a black-market price greater than $2.50.

a surplus of 10 units.

Use the following table to answer the question below. (1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040 Suppose that market demand is represented by two demanders in columns (1) and (2) and market supply is represented by two suppliers in columns (4) and (5). If the price were artificially set at $9 Multiple Choice the market would clear. a surplus of 20 units would occur. Correct a shortage of 20 units would occur. demand would change from columns (3) and (2) to columns (3) and (1).

a surplus of 20 units would occur.

In competitive markets, surpluses or shortages will Multiple Choice never exist because the markets are always at equilibrium. cause changes in the quantities demanded and supplied that tend to eliminate the excess production or excess demand. Correct cause shifts in the demand and supply curves that tend to eliminate the excess production or excess demand. cause changes in the quantities demanded and supplied that tend to intensify the excess production or excess demand.

cause changes in the quantities demanded and supplied that tend to eliminate the excess production or excess demand.

Use the following graph for a competitive market to answer the question below. A black market where the price is $2.00 could result from a price Multiple Choice ceiling set at $2.50. ceiling set at $1.50. Correct floor set at $1.50. floor set at $2.00.

ceiling set at $1.50.

A television station reports that the price of coffee has increased but the quantity traded in the market has decreased. This situation would be caused by a(n) Multiple Choice increase in demand. increase in supply. decrease in demand. decrease in supply. Correct

decrease in supply.

A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n) Multiple Choice increase in the price and quantity of new homes. decrease in the price and quantity of new homes. increase in the price of new homes and decrease in quantity. Correct decrease in the price of new homes and increase in quantity.

increase in the price of new homes and decrease in quantity.

If the price of gasoline increases significantly, then we'd expect the price for hybrid and electric cars to Multiple Choice increase, and the quantity increase. Correct increase, and the quantity to decrease. decrease, and the quantity to increase. decrease, and the quantity to decrease.

increase, and the quantity increase.

Use the following table to answer the question below. PriceQuantity SuppliedQuantity Demanded$101002951115027512190250132202201424518015265135 A technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price. Because of this technological change, equilibrium output in this market Multiple Choice decreased by 60 units. increased by 60 units. increased by 30 units. Correct decreased by 30 units.

increased by 30 units.

There is a shortage in a market for a product when Multiple Choice the current price is lower than the equilibrium price. Correct supply is less than demand. demand is less than supply. quantity demanded is lower than quantity supplied.

the current price is lower than the equilibrium price.

If a price ceiling is set below the equilibrium price in a market Multiple Choice rationing will be unnecessary. surpluses of the commodity will develop. the quantity demanded will exceed the quantity supplied. Correct the quantity supplied will exceed the quantity demanded.

the quantity demanded will exceed the quantity supplied.

If a price floor is set above the equilibrium price in a market Multiple Choice rationing will be unnecessary. shortages will develop. the quantity demanded will exceed the quantity supplied. the quantity supplied will exceed the quantity demanded. Correct

the quantity supplied will exceed the quantity demanded.

Use the following graph for a competitive market for a product where the government has set a price ceiling of 0A to answer the question below. What quantity will buyers be able to buy after the imposition of the price ceiling? Multiple Choice 0J Correct 0L JL KL

0J

Use the following graph of the bicycle market to answer the question below. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the graph is most likely to be the new equilibrium after the introduction of technological improvements in bicycle production and successful publicity campaigns by the government on the virtues of bicycling to work? Multiple Choice 3 4 5 Correct 6

5

Assume that the graphs show a competitive market for the product stated in the question below. Select the graph that best shows the change in the market following a reduction in the tax placed on the buyers in the market. Multiple Choice graph (1) Correct graph (2) graph (3) graph (4)

graph (1)

Assume that the graphs show a competitive market for the product stated in the question. Select the graph above that best shows the change in the market for leather coats when leather coats become more fashionable among young consumers. Multiple Choice graph (1) Correct graph (2) graph (3) graph (4)

graph (1)

Refer to the following graphs to answer the question below. Select the graph above that best shows the changes in demand and supply in the market for music CDs sold in stores, if more consumers switch to music-downloads from the Internet, and the cost of making music CDs decreases because of technological improvement in production. Multiple Choice graph (1) graph (2) graph (3) Correct graph (4)

graph (3)