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If the government established a quota of 1000 in this market, the quota rent would be

$4.00

price of stone increases due to new regulations for the stone quarrying industry. illustrate the impact this will have on the market for bricks. equilbirum price equilibrium quantity

(move demand curve to the right 2) increases increases

consider the table below. assumng the law of demand holds, the cell "?" could be which of the following quantities?

163

the table shows information on the conditions of demand and supply for designer purses, where the quantity of designer purses is measured in thousands

equilibirum = $700 excess supplu or surplus = $900 and $1100 excess demand or shortage = $500

True or false: ALL economists and policy advisors in government agree that prie controls (either floors or ceilings) are always had and should never be instituted.

false

true or false: a perfectly competitive market has high barriers to entry

false

if an increase in income leads to a decrease in demand, the good is

inferior

rent controls are a typical example of a price ceiling. Please select all likely consequences of rent controls when the price ceiling is binding.

more subleting of apartments, reductions in apartment quality, inefficent allocation of apartments, black markets

the small island country of peacockopolis is considering implementing a national minimum wage of $7 per hour. Move the minimum wage line to depicy the $7 minimum wagein the accompanying graph.

straight line from 7-9Wmin

suppose the graph represents the labor market for low-wage workers. a minimum wage $8 per hour is being considered. if imposed, the minimum wage will result in a of

surplus 200 workers

which of the following is true in a competitivie market?

there are many buyers and sellesr

true or false: a surplus is due to an incre4ase in demand

false

true or false: if both supply and demand increase, then the new market equilibrium price wil always have increased

false

true or false: more income will shift supply of an inferior good

false

suppose that there has been a sudden influx of refugees in the small town of dallon, leading to a doubling of the local population. the accompanying graph depicts dallon's market for food. adjust the graph to show the immediate impact that this rise in population has on the food market. then determine what happens to equilibrium price and quantity. equilibrium price equilibrium quantity

(move demand curve to the right 2) increases increases

the accompanying graph represnts the market for cofee. demonstrate how the market for coffee hanges if the price of tea, a subsitute for coffee, dfecreases, and due to better weather, the price of cofffee beans also decrease equilibrium price equilibrium quantity

(move the demamnd curve to the left one and supply to the right one) (equilibirum should be at 11,9) decreases may increase, decrease, or stay the same

Match each statement with the change it describes:

Change in quanity supplied: the price of lamps increases, so lamp producers increase the number of lamps they produce change in supply: lamps become much more profitable to make, so furniture makers make fewer tables and more lamps change in quantity demanded: the price of lamps increases, and lamp sales in urtown drop. change in demand: many people are buying bigger houses, and lamps sales increase

classify each scenario according to whether it represents a change in quantity supplied or a change in supply. Each classification matches two of the scenarios.

Change in quantity supplied: - if the price of applies decreases to $5 per bushel, Farmer Jack will supply 5 bushels of apples instead of 10 bushels of applies - as the price of apples increases, Farmer Jack increases the number of applies he offers for sale Change in supply: - Johnny, the jeweler, expects the price of jewelry to increase at the end of the year - since johnny is a technial jeweler, jimmy also become a jeweler

T/F: the demand curve is upward sloping because it always increases over time

False

a demand curve shift to the right will lower market equilibrium quanity and increase market equilibrium price. (I recommend you DRAW the graph and shift out)

False

true or false: a decrease in input prices will shift the supply curve to the left. (I recommend you DRAW the graph out)

False

true or false: deadweight loss occurs when a quota is set above (aka "to the right of") the market equilibrium point.

False

a famous celebrity begins a summer craze for onezies by wearing it to Coachella. Where does the demand curve for onezies shift (if it does)?

Right

true or false: a shortage wil put upward pressure on the price, EVENTUALLY leading to market equilbirum reoccuring

True

expectations among hiking-boot makers that boot prices will rise significantly in the future will lead to which of the following now?

a decrease in boot supply

the labor market of georgia: if georgia enacts a minimum wage of $8.00 per hour, the labor market will experience

a surplus of 4,000 workers

answers the given two questions relating to demand and the law of demand. a shift in the demand curve can be caused by b. which of the choices illustrates the law of demand?

a. a change in the price of a completmentary good b. sue wants to buy more candy bars at $1 than at $2

Answer the two questions relating to law of supply and supply: a. A shift in the supply curve can be caused by what b. If the price of a kayak increases

a. a change in the price of resources b. the sellers offer more kayaks for sell

The US government has subsidized ethanol production since 1978. with the advent of affortable electric cars, policymakers are considering whether to allow the subsidy to expire. the accompanying graph represents the market for ethanol. move the supply and/or demand curves to show how reducing the subsidy will affect the ethanol market. equilibrium price: equilibrium quantity:

a. increases b. decreases

please identify the appropriate term for the following scenarios. ivan, a russian fisherman, needs a permit so that he can participate in commerical ice fishing for yellow perch and legally sell the perch he catches. garet is an undergraduate student who has to work at McDonald's part-time to help pay his tution loans. Always looking on the bright side of things, he is thankful that he cannot make less than what he is earing, $7.25/hour d' artagman, a poor French noblemen, discovers a large cache of truffles in his backyard. However, the government caps the sable of truffles at $100/pound, which fruststrates D'artagman because he knows they are worth more than that. athos is an avid collector of swords, but as they are illegal to purchase, he obtain them through illicit means. to help out farmers, the government sets the minimum price of potatoes at $26 per bushel. in order to support domestic sales of textiles, the country of Germany puts a cap on the amount of foreign textiles it imports

a. ivan's permit = liscense b. garet's wage = price floor c. the truffles price cap = price ceiling d. buying swords illegally = black market e. minimum potato price = price floor f. cap on imports = quota

The table contains d and s schedule for the city apartments and cit puts a price ceiling of 75

a. shortage b. 4500

which of the following will occur if consumers expect the price of a good to fall in the coming months?

demand will decrease today

a technological advance in textbook production will lead to which of the following?

an increase in textbook supply

in a market economy, there is __________ relationship between the price of a good and the amount of a good that buyers are willing and able to purchase

an inverse or negative

the basic proposition of the law of demand is that

as the price of a good increases, buyers are willing and able to purchase less

suppose that the graph illustrates the market demand for poutine per month with an equilibrium price of $3.00 and equilibrium quantity of 4 thousand servings of poutine. please indicate on the graph the effects of excess inventories that lower the price by $2 and place point A at the new equilibrium what is the new quantity of poutine demanded?

curve is from 1.0 and up from 5.3 5.3

in the market for soft drinks, one of the industries major suppliers has decided to exit the market and focus on its snack foods. at the same time, the price of soft drinks has increased and the total amo0unt of soft drink sales has increased. what could have happened in this market to produce this result?

demand increased more than supply decreased

suppose that the city of lethbridge decrees that all resutrants located within a 15 mi radius of the Univversity of Lethbridge can charge no more than $1 a meal so that college students can eat out economicallu. What is a likely result of this price ceiling?

People will waste time standing in line at resturants with a $1 meal rice that provides an incentive for consumers but not producers

suppose that the city of halifax decrees that all resturants located within a 15 mi raidus of the unviersity of halifax most charge at least $10 a meal so that college students can become mroe refined in their dining what is a likely result of this price floor?

some resturants like Le Cordon Bleu will create rustic chicken and imported cheese paninis at $10 a sandiwhc to satisfy the refined demands of college students instead of its old $5 ham and cheese specials

the concept of demand is best described as

the quantity of a good or a service that people are willing and able to purchase at diffeerent possible prices

at the $7 minimum wage, what is the relationship between the number of people that want to work and the number of jobs tahat firms will offer?

the supply curve shows the number of people that want to work, and a $7 wage more people want to work than jobs are offered to the labor market

bc the market supply curve is the sum of individual producers' supply curves, an increase in the number of producers will cause which of the following?

the supply curve to shift to the right

an increase in the demand for steak, which increases the price of steak, will lead to an increase in which of the following?

the supply of leather (a complement in production )

if the price of hockey pucks goes up from $7.99 to $14.99, what can be expected from suppliers of hockey pucks as a result?

there will be an inrease in quantity supplied