The table above indicates the demand schedule for four types of consumers. Suppose there are 8,000 consumers, early divided between the four types of customers (A – D). The quantity demanded at a price of $7 is?
a. 40,000 b. 60,000 c. 58,000 d. 42,000
11. The graph on the bottom shows the demand for automobiles.
Suppose that there is a decrease in consumer incomes.
Show the effect on the current demand cure. Label it D2
12. Which of the following would cause a decrease in the demand for beef?
a. An increase in consumer incomes (beef is a normal good).
b. A decrease in the number of firms in the market
c. An increase in the price of beef
d. A decrease in the price of fish, a substitute for beef.
13. The graph below shows the supply of automobiles.
Suppose that there is a decrease in subsidies.
Show the effect on the current supply cure. Label your new curve S2
14. Which of the following would cause an increase in the supply of chicken?
a.A decrease in the price of inputs to chicken production
b. An increase in taxes
c. An increase in the number of buyers in the market
d. An increase in the price of chicken
15. The following table gives the demand and supply schedules for gizmos.
|PRICE||QTY DEMANDED||QTY SUPPLIED|
a. The equilibrium price in this market is
b. The equilibrium quantity in this market is units
c. If the price in this market was $25, there would be anexcess supplyof units.
16. The law of demand states that
a. as price increases, quantity demanded decreases, all other things equal.
b. if prices, income, and the price of other goods increase, demand will increase.
c. supply creates its own demand.
d. as price increases, quantity demanded increases, all other things equal.
e. if supply increases, demand will increase to meet supply.
17-1 Which of the following is an implication of the law of supply.
a. Increases in money prices will lead to an increase in supply while increases in relative prices will lead to a decrease in supply.
b. Individual will purchase fewer units at a higher price and more units at a lower price.
c. Changes in the price of a good leads to a shift in the supply curve.
d. Producers will offer more units at a higher price and fewer units at a lower price.
17-2 The law of supply then implies that a __________ the supply curve occurs due to a change in market price
a. Movement along
b. Shift of
18. Assume that the cost of aluminum used by soft-drink companies increases. Indicate which of the following statements describing the resulting effects in the market for soft drinks distributed in aluminum cans are TRUE or FALSE.
a. The demand for soft drinks decreases. TRUE or FALSE
b. The quantity of soft drinks demanded decreases. TRUE or FALSE
c. The supply of soft drinks decreases. TRUE or FALSE
d. The quantity of soft drinks supplied decreases. TRUE or FALSE
19. At the market equilibrium price.
a. demand equals supply.
b. quantity demanded equals quantity supplied
c. quantity and price are equal
d. everyone can buy the product.
20. Suppose that you are investigating the market for aluminum. The price of steel, a substitute good, has decreased. Which of the following would be best describe the market reaction to this event?
a. The supply of aluminum decreases since the price of steel decreases.
b. The demand for aluminum decreases, creating a shortage and forcing the price of aluminum to increase.
c. The supply of steel increases since steel firms must produce more steel to make up for the price decrease.
d. The demand for aluminum decreases, which creates a surplus of aluminum, causing the price of aluminum to decrease.
21. According to the accompanying graph, when the government imposes a price ceiling of $25.
a. the quantity of goods that will be traded is 0.
b. the quantity of goods that will be traded is 200.
c. the quantity of goods that will be traded is 150.
d. the quantity of goods that will be traded is 100.
22. Voluntary exchange
a. makes one party better off while making the other party worse off.
b. is not part of the market system
c. relates to price ceilings and price floors.
d. makes both parties to a trade better off.