Exam 2: Supply and Demand

Correct Answer

verified

In all cases,total expenditure equals 10...

View Answer

Show Answer

A) the producer simply passes the entire tax on to the consumer.
B) the producer must absorb the entire tax.
C) the producer can generally only pass part of the tax onto the consumer.
D) the equilibrium price drops.

Correct Answer

verified

Show Answer

A) there is no equilibrium.
B) the quantity demanded does not equal the quantity supplied.
C) all potential customers are happy because they can buy the good at a lower price.
D) producers move production to another country.

Correct Answer

verified

Show Answer

A) causes suppliers to lose money.
B) creates a shortage.
C) is non-binding.
D) creates a surplus.

Correct Answer

verified

Show Answer

Correct Answer

verified

First,Q = 100q since all firms are ident...

View Answer

Show Answer

A) shift in the supply curve.
B) shift in the demand curve.
C) reaction from firms in other countries.
D) All of the above.

Correct Answer

verified

Show Answer

A) everyone is a price taker with full information about the price and quality of the good.
B) firms sell identical products.
C) costs of trading are low.
D) All of the above.

Correct Answer

verified

Show Answer

A) The demand curve is expected to shift to the right.
B) The demand curve is expected to shift to the left.
C) The demand curve is not expected to change.
D) For those who read the review, demand shifts to the left. For those who don't read the review, demand shifts to the right.

Correct Answer

verified

Show Answer

A) shift the supply curve of oil to the left.
B) shift the supply curve of oil to the right.
C) leave the supply curve of oil unchanged.
D) Not enough information to answer the question.

Correct Answer

verified

Show Answer

A) Buying the product requires you to hire a lawyer to write a contract.
B) All market participants are price-takers.
C) You are the only buyer of the product.
D) All products are identical.

Correct Answer

verified

Show Answer

A) 300 pounds of apples will be sold at $2.
B) no apples will be supplied.
C) no apples will be demanded.
D) None of the above.

Correct Answer

verified

Show Answer

A) markets need the government to intervene.
B) forces are constantly pushing markets out of equilibrium
C) people coordinate their activities, resulting in equilibrium in the market.
D) there is an invisible glove that restricts what markets can do.

Correct Answer

verified

Show Answer

A) the supply curve will shift rightward.
B) the supply curve will shift leftward.
C) excess supply exists.
D) all firms can sell as much as they want.

Correct Answer

verified

Show Answer

A) p = 8, Q = 60
B) p = 7, Q = 40
C) p = 7, Q = 70
D) p = 10, Q = 40

Correct Answer

verified

Show Answer

A) was passed by the 102nd U.S. Congress.
B) is a natural law, much like the law of gravity.
C) is considered a "law" in economics because of the overwhelming empirical evidence that supports its logic.
D) is considered a "law" in economics in order to force economic models to operate fully.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) the equilibrium price of apples would likely fall.
B) the equilibrium price of oranges would likely increase in the near term.
C) the equilibrium quantity of oranges would likely increase.
D) All of the above.

Correct Answer

verified

Show Answer

A) it is clear that prices will increase, the change in the quantity of eBook readers sold is ambiguous.
B) it is clear that prices will decrease, the change in the quantity of eBook readers sold is ambiguous.
C) it is clear that quantity sold will increase, the change in the price of eBook readers is ambiguous.
D) it is clear that quantity sold will decrease, the change in the price of eBook readers is ambiguous.

Correct Answer

verified

Show Answer