macro homework 2

Suppose the university is trying to determine the most efficient way to allocate the rooms such that those who value the rooms the most get them. Which of the following would you suggest as the most efficient? A. Auctioning the rooms to the highest bidders. B. Allocating rooms based on grades, with students with the highest GPAs getting first choice. C. Using a random lottery to allocate rooms, with each student having equal odds of receiving a room. D. Allocating rooms based on seniority. Seniors get first choice, then juniors, and so on

A. Auctioning the rooms to the highest bidders.

Which would be the correct sequence of events in the speedboat industry if waterway access was improved and, at the same time, a lighter polymer became available that increased production efficiency? A. Supply would shift right, demand would shift right, equilibrium price would be indeterminable, and equilibrium quantity would increase B. Supply would shift left, demand would shift left, equilibrium price would be indeterminable, and equilibrium quantity would decrease C. Supply would shift left, demand would shift right, equilibrium price would decrease, and equilibrium quantity would increase. D. Supply would shift right, demand would shift left, equilibrium price would increase, and equilibrium quantity would be indeterminable

A. Supply would shift right, demand would shift right, equilibrium price would be indeterminable, and equilibrium quantity would increase

4. How would a rightward shift in the supply curve affect the equilibrium price in a market? A. The equilibrium price decreases. B. The equilibrium price would remain the same. C. The equilibrium price increases. D. More information is needed. It may increase, decrease, or remain the same.

A. The equilibrium price decreases.

All of the following would cause a shift in the supply curve for orange juice, except A. a new medical discovery about the benefits of citrus. B. tax credits for citrus farmers. C. new machinery that speeds up the picking process. D. a freeze over all of Florida for three nights in a row.

A. a new medical discovery about the benefits of citrus.

Holding all else constant, if the number of cell phone manufacturers suddenly decreased due to increased regulations, then A. supply would shift leftwards, equilibrium price would increase, and equilibrium quantity would decrease. B. supply would shift leftwards, equilibrium price would decrease, and equilibrium quantity would decrease. C. supply would shift rightwards, equilibrium price would decrease, and equilibrium quantity would increase. D. supply would shift rightwards, equilibrium price would increase, and equilibrium quantity would decrease

A. supply would shift leftwards, equilibrium price would increase, and equilibrium quantity would decrease.

In response to a region-wide power outage cause by a hurricane, a retailer increases the price of generator from $ to $ . The most likely purchaser would be 350 2,900 A. a wealthy individual, who has $700 worth of refrigerated food to save. B. a restaurant owner, who has $3,500 worth of refrigerated food to save. C. no one, as consumers would boycott such price gouging. D. the first person in line, who has $300 of worth of refrigerated food to save.

B. a restaurant owner, who has $3,500 worth of refrigerated food to save.

Two airlines serve the route between Tampa and Houston. What will happen to one airline if the other one raises its prices? A. There will be a movement downward, to the right, along its initial demand curve. B. Its demand curve will shift to the left. C. Its demand curve will shift to the right. D. There will be a movement upward, to the left, along its initial demand curve.

C. Its demand curve will shift to the right.

How would the equilibrium price in a market be affected if there were a leftward shift in the curve and a leftward shift in the curve? small supply large demand A. The equilibrium price increases. B. The equilibrium price would remain the same. C. The equilibrium price decreases. D. More information is needed. It may increase, decrease, or remain the same.

C. The equilibrium price decreases.

How would the equilibrium price in a market be affected if there were a rightward shift in the curve and a rightward shift in the curve? small supply large demand A. The equilibrium price would remain the same. B. The equilibrium price decreases. C. The equilibrium price increases. D. More information is needed. It may increase, decrease, or remain the same.

C. The equilibrium price increases.

Which change causes a movement along the demand curve? A. buyer's beliefs about the future B. tastes and preferences C. number and scale of buyers D. price of the good itself

D. price of the good itself

Suppose a new off-campus university apartment complex could rent its rooms on the open market for $900 a month. If, instead, the university chooses to cap the price of rooms to $500 a month for students, the result would be that ____________. A. quantity supplied would exceed the quantity demanded, resulting in a shortage. B. quantity demanded would exceed the quantity supplied, resulting in a surplus. C. quantity supplied would exceed the quantity demanded, resulting in a surplus. D. quantity demanded would exceed the quantity supplied, resulting in a shortage.

D. quantity demanded would exceed the quantity supplied, resulting in a shortage.