ECON CH 4-6 REVIEW
Refer to the diagram illustrating the market for corn. The equilibrium price and quantity in this market are:
$3 and 8,000 bushels
If this is a competitive market, price and quantity will move toward:
$40 and 150 respectively.
A price of $60 in this market will result in:
a surplus of 100 units.
a cost that does not change no matter how much a good is produced is called a
fixed cost
the monetary value of a product
price
which is the main cause of a change in quantity demanded
price
A government-set price ceiling is best illustrated by:
price A
Rent controls are best illustrated by:
price A
A government-set price floor is best illustrated by:
price C
the two variables on a demand curve are
price and quantity
A chart that lists how much of a good a supplier will offer at different prices is called
a market supply schedule
the desire, ability, and willingness to buy a product or service is called
demand
situation where quantity supplied is less than quantity demanded
shortage
prices related in a way that an increase in the price of one increases the demand for other
substitutes
the amount of goods available for sale is called
supply
situation where quantity supplied is greater than quantity demanded
surplus
the purpose of adverting is to increase demand for a product or service
true
A shortage of 160 units would be encountered if price was:
$.50
The equilibrium price and quantity in this market will be:
$1.00 and 200.
The equilibrium price and quantity for milk in this market are:
$1.50 and 28 million gallons
A surplus of 160 units would be encountered if price was:
$1.60.
The equilibrium price in the above market is:
$13
In a free-market economy, the market price and quantity will adjust to:
$25 and 1,200 units
At a price of $6, the market demand for bushels of wheat among the three buyers in the market is:
17
The quantity demanded for wheat is:
37 bushels at $4 and 52 bushels at $3
The diagram below shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D3?
A decrease in the price of tea
At a price of $10 per unit, which of the following would exist?
A shortage of 1,500 units
A surplus exists when the price is:
Greater than $25 per unit
If the price were $1 per gallon, there would be a:
Shortage of 8 million gallons
If the price were $2 per gallon, there would be a:
Surplus of 10 million gallons
a subsidy is
a government payment to support a business or market
which product would most likely have a demand that is inelastic
a vital medicine
a market in which goods are sold illegally
black market
When the price of something increases, the quantity demanded
decreases
system of allocating goods and services without prices
rationing
The diagram below shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D2?
An increase in consumer incomes