Question 1

If the government legislates a price ceiling that is above the equilibrium price

Accepted Answer

A)  a shortage will develop.
B)  some non-price method of rationing will develop.
C)  market price and quantity sold will be unaffected.
D)  a surplus will develop.

Question 2

Quantity Demanded  Price  Quantity Supplied 30$106440$85550$65060$44070$220\begin{array}{ccc}	ext { Quantity Demanded } & 	ext { Price } & 	ext { Quantity Supplied } \30 & \$ 10 & 64 \40 & \$ 8 & 55 \50 & \$ 6 & 50 \60 & \$ 4 & 40 \70 & \$ 2 & 20\end{array} Quantity Demanded 3040506070​ Price $10$8$6$4$2​ Quantity Supplied 6455504020​ 
-When price is $8

Accepted Answer

A)  quantity demanded is greater than quantity supplied and,therefore,price must fall to get to equilibrium price.
B)  quantity demanded is greater than quantity supplied and,therefore,price must rise to get to equilibrium price.
C)  quantity supplied is greater than quantity demanded and,therefore,price must fall to get to equilibrium price.
D)  quantity supplied is greater than quantity demanded and,therefore,price must rise to get to equilibrium price.

Question 3

In a market where the forces of demand and supply operate without government intervention,the market price will

Accepted Answer

A)  always be the equilibrium price.
B)  generally stay above the equilibrium price.
C)  generally stay below the equilibrium price.
D)  tend toward the equilibrium price.

Question 4

If demand rises and supply rises,equilibrium price will _____ and equilibrium quantity will _____.

Accepted Answer

rise,fall,...

Question 5

When the market price of a good is below its equilibrium price,competition among

Accepted Answer

A)  buyers will push the price up.
B)  buyers will push the price down.
C)  sellers will push the price up.
D)  sellers will push the price down.

Question 6

When the market price is higher than the equilibrium price,there is

Accepted Answer

A)  a surplus.
B)  a shortage.
C)  both a shortage and a surplus.
D)  neither a shortage nor a surplus.

Question 7

If the government set a price ceiling at $8

Accepted Answer

A)  there would be a temporary surplus,then prices would fall to equilibrium.
B)  there would be a permanent surplus,at least until the price floor was lifted.
C)  the price would fall back to the equilibrium price.
D)  the price floor would not have any effect on this market.

Question 8

Statement I: In 1973 and 1979 the United States dealt with a decrease in the supply of oil by letting the market solve the problem.
Statement II: In 2005 the government avoided the problems of long gas lines by allowing the price of gasoline to rise.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 9

If price were set by the government at $3,there would be a price _____________,that would cause a ___________ of _______ units.

Accepted Answer

A)  floor,surplus,12
B)  floor,shortage,12
C)  ceiling,surplus,14
D)  ceiling,shortage,14

Question 10

-In the graph shown above,equilibrium price is _______.

Accepted Answer

A)  $25
B)  $30
C)  $35
D)  $40

Question 11

Draw in a new supply curve,S1,on figure,showing an increase in supply.What happens to price and quantity?

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Equilibrium price f...

Question 12

-In the graph shown above,if the government set a price ceiling of $26,

Accepted Answer

A)  there would be a permanent shortage,at least until the price ceiling was lifted.
B)  there would be a temporary shortage,then the price would fall to equilibrium price.
C)  price would rise to the equilibrium price.
D)  price would immediately fall to the equilibrium price.

Question 13

A decrease in demand means that quantity demanded falls

Accepted Answer

A)  at least one price.
B)  at a few prices.
C)  at most prices.
D)  at all prices.

Question 14

-A shift from S1 to S2 represents

Accepted Answer

A)  an increase in supply.
B)  a decrease in supply.
C)  no change in supply.

Question 15

-In the graph shown above,if the government set a price ceiling of $45

Accepted Answer

A)  there would be a surplus.
B)  there would be a shortage.
C)  there would be no effect as buyers and sellers already agree on equilibrium price and quantity.
D)  there would be a temporary surplus,then price would fall to equilibrium price.

Question 16

Demand is defined as

Accepted Answer

A)  the quantity people would buy at a given price.
B)  the quantity needed by an individual during a given time.
C)  the amount of a good actually purchased during a given time.
D)  the quantities that buyers will purchase at different prices.

Question 17

The demand curve slopes

Accepted Answer

A)  upward to the right.
B)  upward to the left.
C)  downward to the right.
D)  downward to the left.

Question 18

When quantity supplied is greater than quantity demanded,the price will _____.

Accepted Answer

The answer of When quantity supplied is greater than quantity...

Question 19

When demand falls and supply stays the same,equilibrium price ______ and equilibrium quantity ________.

Accepted Answer

The answer of When demand falls and supply stays the...

Question 20

-Equilibrium price is _____ and equilibrium quantity is _____ units.

Accepted Answer

A)  $4,4
B)  $6,10
C)  $8,16
D)  $8,10

Exam 4: Supply and Demand

-Equilibrium price is _____ and equilibrium quantity is _____ units.

Correct AnswerverifiedShow Answer

When demand falls and supply stays the same,equilibrium price ______ and equilibrium quantity ________.

Correct AnswerverifiedShow Answer

If demand rises and supply rises,equilibrium price will _____ and equilibrium quantity will _____.

Correct Answerverifiedrise,fall,...View AnswerShow Answer

-In the graph shown above,equilibrium price is _______.

Correct AnswerverifiedShow Answer

When quantity supplied is greater than quantity demanded,the price will _____.

Correct AnswerverifiedShow Answer

Draw in a new supply curve,S1,on figure,showing an increase in supply.What happens to price and quantity?

Correct Answerverified Equilibrium price f...View AnswerShow Answer

-A shift from S1 to S2 represents

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the government set a price ceiling at $8

Correct AnswerverifiedShow Answer

When the market price is higher than the equilibrium price,there is

Correct AnswerverifiedShow Answer

The demand curve slopes

Correct AnswerverifiedShow Answer

Demand is defined as

Correct AnswerverifiedShow Answer

-In the graph shown above,if the government set a price ceiling of $26,

Correct AnswerverifiedShow Answer

-In the graph shown above,if the government set a price ceiling of $45

Correct AnswerverifiedShow Answer

When the market price of a good is below its equilibrium price,competition among

Correct AnswerverifiedShow Answer

A decrease in demand means that quantity demanded falls

Correct AnswerverifiedShow Answer

Statement I: In 1973 and 1979 the United States dealt with a decrease in the supply of oil by letting the market solve the problem. Statement II: In 2005 the government avoided the problems of long gas lines by allowing the price of gasoline to rise.

Correct AnswerverifiedShow Answer

If price were set by the government at $3,there would be a price _____________,that would cause a ___________ of _______ units.

Correct AnswerverifiedShow Answer

If the government legislates a price ceiling that is above the equilibrium price

Correct AnswerverifiedShow Answer

In a market where the forces of demand and supply operate without government intervention,the market price will

Correct AnswerverifiedShow Answer

-Equilibrium price is _ and equilibrium quantity is _ units.

Correct Answer
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When demand falls and supply stays the same,equilibrium price and equilibrium quantity __.

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If demand rises and supply rises,equilibrium price will _ and equilibrium quantity will _.

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rise,fall,...
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Equilibrium price f...
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If price were set by the government at $3,there would be a price _______,that would cause a _ of ___ units.

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