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Exam 4: Demand, supply, and Equilibrium

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Question 81

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Which of the following is likely to lead to a rightward shift in the supply curve of cotton?

A) An increase in labor productivity due to training programs
B) A rise in labor costs due to wage demands by labor unions
C) An increase in the price of cotton
D) A decrease in the price of cotton

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Question 82

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Which of the following is not a required characteristic of a market?

A) A collection of economic agents (e.g., buyers and sellers)
B) Trade or exchange of a good or service
C) Rules and arrangements for trading
D) Government setting the price of the good or service

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Question 83

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Suppose Z is a normal good.The equilibrium price and quantity of Z in the year 2013 was $25 and 60 units,respectively.In 2017,the equilibrium price of Z had increased to $35 and the equilibrium quantity had increased to 70 units.Other things remaining the same,which of the following could explain this change?

The following table shows the supply schedule of bread for three sellers in the economy. Assume that these three sellers constitute the entire market. -Refer to the table above.Assuming that the market consists of only these three sellers,what is the market supply when the price is $2 per loaf?

Suppose the market for cement is such that the output of all sellers is identical in composition and quality.While there are a large number of buyers and sellers,everyone conducts transactions at a common market price.Which of the following statements is true about the structure of the cement market?

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise: MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte. -Refer to the scenario above.The Charlotte Metropolitan Statistical Area (seven counties in North Carolina and three counties in South Carolina) is expected to grow at an annual rate of 1.3 percent.Population growth will cause a(n) ________.

The quantity demanded of a good is ________.

Scenario: Suppose the market for wheat in the United States is given by the demand and supply schedules in the table below (as well as the accompanying graph) . Suppose the U.S. government imposes a minimum price for wheat (price floor) of $6 per bushel. -Refer to the scenario above.The quantity demanded of wheat at the minimum price is ________.

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise: MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte. -Refer to the scenario above.MLB forecasted that parking for MLB games in Charlotte would cost $12,but it now learns that parking will actually cost $16.How will the increased price of parking affect demand for MLB game attendance in Charlotte?

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.At what price does the market for notebooks clear?

How would the following events affect the market demand for laser printers? a)A recession in the economy leading to a fall in income levels b)A fivefold increase in the price of printing paper

Assume that the market for bread is perfectly competitive.The demand for bread is given by the equation D = 120 − 10P,and the market supply for bread is given by S = 60 + 5P.Determine the equilibrium price and quantity of bread.What happens if the price of the bread is set at $10 per loaf? What happens if the market price is set at $2 per loaf?

The market supply is the ________ of the individual supplies of all the potential sellers.

The gasoline market in the United States is often said to be highly competitive.It is not perfectly competitive,but it has features and results that are similar to those of a perfectly competitive market,such as ________.

Suppose Z is a normal good.The equilibrium price and quantity of Z in the year 2013 was $25 and 60 units,respectively.In 2017,the equilibrium price of Z had increased to $35 but the equilibrium quantity had decreased to 50 units.Other things remaining the same,which of the following could explain this change?

Two goods are said to be substitutes when a fall in the price of one good ________.

Scenario: Suppose Major League Baseball (MLB) is considering expansion to a U.S. city that currently does not have a MLB franchise. The league has compiled the following information on five cities viewed as the top contenders for an expansion franchise: MLB decides Charlotte is the most attractive candidate to receive an expansion franchise and is contemplating how demographic and economic information is likely to affect demand to attend MLB games in Charlotte. -Refer to the scenario above.Household income is expected to grow by 5.5 percent per year in Charlotte.If MLB game attendance is a normal good,income growth will cause a(n) ________.

If the current market price of wheat in the United States is $6 per bushel and the federal government sets the maximum price of wheat at $4 per bushel,what happens to the market price and quantity of wheat in the U.S.wheat market?

The buyers of a good will want to purchase it as long as their willingness to pay for the good is ________.

A seller's willingness to accept is the same as his ________ cost of production.