Question 1

If price were $190,there would be a _____ (shortage or surplus)of _____.

Accepted Answer

The answer of If price were $190,there would be a...

Question 2

If you are willing to buy a particular good,you still won't buy it unless you happen to _____.

Accepted Answer

have the m...

Question 3

A supply schedule is determined by the wishes of

Accepted Answer

A)  sellers
B)  buyers
C)  sellers and buyers
D)  neither sellers or buyers

Question 4

Price ceilings keep market price

Accepted Answer

A)  above the equilibrium price and create surpluses.
B)  above the equilibrium price and create shortages.
C)  below the equilibrium price and create surpluses.
D)  below the equilibrium price and create shortages.

Question 5

Most economists believe price ceilings ______________

Accepted Answer

A)  do more harm than good.
B)  have no impact on the market.
C)  do more good than harm.
D)  are necessary to protect consumers.

Question 6

When quantity demanded is equal to quantity supplied,we are at ___________.

Accepted Answer

The answer of When quantity demanded is equal to quantity...

Question 7

Statement I: A price floor will always have an effect on a market.
Statement II: A price ceiling which has been set above equilibrium will cause a shortage.

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 8

-In the graph shown above at a price of $25

Accepted Answer

A)  there is a surplus.
B)  there is a shortage.
C)  quantity demanded is greater than quantity supplied.
D)  there is a shortage and quantity demanded is greater than quantity supplied,but there is not a surplus.
E)  there is a surplus and quantity demanded is greater than quantity supplied,but there is not a shortage.

Question 9

-Equilibrium quantity is _____.

Accepted Answer

The answer of 
-Equilibrium quantity is _____....

Question 10

When quantity demanded is greater than quantity supplied

Accepted Answer

A)  price will fall to its equilibrium price.
B)  price will rise to its equilibrium price.
C)  price may rise,fall,or stay the same,depending on a variety of factors.

Question 11

A maximum wage law,as opposed to a minimum wage law,would be considered a

Accepted Answer

A)  price ceiling.
B)  price floor.
C)  tax on businesses.
D)  sales tax.

Question 12

Price floors are

Accepted Answer

A)  sometimes associated with surpluses.
B)  always associated with surpluses.
C)  sometimes associated with shortages.
D)  always associated with shortages.

Question 13

Rent control is a price _____.

Accepted Answer

The answer of Rent control is a price _____....

Question 14

-If the government set a price floor at $18

Accepted Answer

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

Question 15

Which of the following government programs will NOT create a surplus?

Accepted Answer

A)  Farm price support payments
B)  The minimum wage law
C)  Usury laws
D)  A price floor above the equilibrium price

Question 16

Which situation below would represent a surplus in the fertilizer market?

Accepted Answer

A)  Quantity demanded is 1.2 million;quantity supplied is 1.1 million.
B)  Market price $2.00 per bag;equilibrium price $2.25 per bag.
C)  Market price $2.50 per bag;equilibrium price $2.00.
D)  Quantity supplied this year is 25% greater than quantity supplied last year.

Question 17

When the price is $3

Accepted Answer

A)  quantity supplied is greater than quantity demanded and,therefore,price must rise to get back to equilibrium.
B)  quantity supplied is greater than quantity demanded and,therefore,price must fall to get back to equilibrium.
C)  quantity demanded is greater than quantity supplied and,therefore,price must rise to get back to equilibrium.
D)  quantity demanded is greater than quantity supplied and,therefore,price must fall to get back to equilibrium.
E)  None of these choices are correct.

Question 18

Which statement is true?

Accepted Answer

A)  Most economists support rent control laws.
B)  Usury laws and rent control are price ceilings.
C)  Usury laws have never had any effect because they are set well above interest rates.
D)  None of these choices are true.

Question 19

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

Accepted Answer

A)  $8,9
B)  $7,10
C)  $6,10
D)  $5,9
E)  $4,85

Question 20

-A)Is a price of $11 a price floor or a price ceiling?
B)Is there a shortage or a surplus?
C)How much is it?

Accepted Answer

A)Ceiling
...

Exam 4: Supply and Demand

When the price is $3

Correct AnswerverifiedShow Answer

-Equilibrium quantity is _____.

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-A)Is a price of $11 a price floor or a price ceiling? B)Is there a shortage or a surplus? C)How much is it?

Correct AnswerverifiedA)Ceiling...View AnswerShow Answer

If you are willing to buy a particular good,you still won't buy it unless you happen to _____.

Correct Answerverifiedhave the m...View AnswerShow Answer

Which situation below would represent a surplus in the fertilizer market?

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Rent control is a price _____.

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Price ceilings keep market price

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Most economists believe price ceilings ______________

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Statement I: A price floor will always have an effect on a market. Statement II: A price ceiling which has been set above equilibrium will cause a shortage.

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Which of the following government programs will NOT create a surplus?

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

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When quantity demanded is greater than quantity supplied

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A supply schedule is determined by the wishes of

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Which statement is true?

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-If the government set a price floor at $18

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When quantity demanded is equal to quantity supplied,we are at ___________.

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-In the graph shown above at a price of $25

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Price floors are

Correct AnswerverifiedShow Answer

A maximum wage law,as opposed to a minimum wage law,would be considered a

Correct AnswerverifiedShow Answer

If price were $190,there would be a _____ (shortage or surplus)of _____.

Correct AnswerverifiedShow Answer

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

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If price were $190,there would be a _ (shortage or surplus)of _.

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