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Exam 3: Supply and Demand

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Question 61

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The price of bananas will increase in response to:

A) an excess supply of bananas.
B) an excess demand for bananas.
C) an increase quantity of bananas supplied.
D) an increase in the supply of bananas.

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Question 62

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A market equilibrium:

A) leaves unexploited opportunities for individuals.
B) maximizes total economic surplus.
C) exploits all gains achievable through collective action.
D) leaves no unexploited opportunities for individuals.

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Question 63

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Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 could be caused by a(n) :

If the demand for gadgets increases as a result of a decrease in the price of widgets, the widgets and gadgets are:

Refer to the given table. Relative to column A, column B represents: $\begin{array} { | r | r | r | } \hline \text { Price Per Unit } & \text { Columu A Units Per Year } & \text { Colum B Units Per Year } \\\hline \$ 20 & 100 & 110 \\\hline \$ 30 & 85 & 95 \\\hline \$ 40 & 70 & \mathbf { 8 0 } \\\hline \$ 50 & 55 & 65 \\\hline \$ 60 & 40 & 50 \\\hline\end{array}$  

Suppose supply decreases, but there is no change in demand. As the market reaches its new equilibrium:

As the price of flour (an input in the production of cookies) increases, firms that produce cookies will:

Which of the following is NOT a characteristic of rent controls?

If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.

Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the buyer's surplus from this transaction was:

Refer to the given table. $\begin{array} { | r | r | r | } \hline \text { Price Per Unit } & \text { Columu A Units Per Year } & \text { Colum B Units Per Year } \\\hline \$ 40 & 110 & 40 \\\hline \$ 45 & 95 & 50 \\\hline \$ 50 & 80 & 60 \\\hline \$ 55 & 65 & 70 \\\hline \$ 60 & 50 & \mathbf { 8 0 } \\\hline\end{array}$   Suppose the columns in this table reflect demand and supply. If the current market price is $50, then you would expect:

Buyers and sellers of a particular good make up the:

The market equilibrium quantity:

The quantity that sellers wish to sell tends to ________ as price increases, and so the supply curve is ________ sloping.

Refer to the accompanying figure. The equilibrium price is ________, and the equilibrium quantity is ________.

The supply curve illustrates that firms:

As the price of cookies increases, firms that produce cookies will:

Refer to the accompanying figure. Assume the market is originally at point W. Movement to point Z is a combination of:

A decrease in both the equilibrium price and the equilibrium quantity of rice is best explained by:

It is likely that for most people: