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Refer to the table below. The equilibrium price and quantity in this market is: Refer to the table below. The equilibrium price and quantity in this market is: A) $4.00 and 40 units. B) $4.00 and 80 units. C) $2.00 and 50 units. D) $2.00 and 60 units. E) $8.00 and 40 units.


A) $4.00 and 40 units.
B) $4.00 and 80 units.
C) $2.00 and 50 units.
D) $2.00 and 60 units.
E) $8.00 and 40 units.

Correct Answer

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Answer the following questions about a market that is perfectly competitive: a. If the price is above the equilibrium price, would there be a shortage or a surplus? b. What will happen if the price is below the equilibrium price? c. During a shortage, how does the market respond until it once again reaches equilibrium?

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a. If the price is above the equilibrium...

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Consider the following demand schedules for New York Mets T-shirts: Consider the following demand schedules for New York Mets T-shirts: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series? A) B) C) D) E) Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series?


A) Consider the following demand schedules for New York Mets T-shirts: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series? A) B) C) D) E)
B) Consider the following demand schedules for New York Mets T-shirts: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series? A) B) C) D) E)
C) Consider the following demand schedules for New York Mets T-shirts: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series? A) B) C) D) E)
D) Consider the following demand schedules for New York Mets T-shirts: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series? A) B) C) D) E)
E) Consider the following demand schedules for New York Mets T-shirts: Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series? A) B) C) D) E)

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Use the accompanying graph to answer the following questions. Use the accompanying graph to answer the following questions. a. What is the equilibrium price and equilibrium quantity in this market? b. Draw an increase in demand and explain what happens to the equilibrium price and equilibrium quantity. c. This is a special type of supply curve that we call an inelastic supply curve. What special property does it have? a. What is the equilibrium price and equilibrium quantity in this market? b. Draw an increase in demand and explain what happens to the equilibrium price and equilibrium quantity. c. This is a special type of supply curve that we call an inelastic supply curve. What special property does it have?

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a. The equilibrium price and quantity in...

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Susie decided to start selling lemonade on her street. The other kids in the neighborhood noticed that Susie was making a lot of money selling lemonade. These kids decided to open their own lemonade stand. When they opened their own lemonade stand, the equilibrium price:


A) increased and the equilibrium quantity decreased.
B) decreased and the equilibrium quantity increased.
C) increased and the equilibrium quantity increased.
D) decreased and the equilibrium quantity decreased.
E) stayed the same and the equilibrium quantity stayed the same.

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When the number of firms in a market decreases,


A) the demand curve shifts to the left.
B) the demand curve shifts to the right.
C) the supply curve shifts to the right.
D) the supply curve shifts to the left.
E) both the supply and the demand curves shift to the left.

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You are given the following supply schedule: You are given the following supply schedule: a. Graph the information from the supply schedule. Be sure to label everything. b. Now graph the following supply schedule: c. c. What happened to the supply curve? d. List five things that could make the supply curve reflect your answer in part a. Graph the information from the supply schedule. Be sure to label everything. b. Now graph the following supply schedule: You are given the following supply schedule: a. Graph the information from the supply schedule. Be sure to label everything. b. Now graph the following supply schedule: c. c. What happened to the supply curve? d. List five things that could make the supply curve reflect your answer in part c. c. What happened to the supply curve? d. List five things that could make the supply curve reflect your answer in part

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a. blured image b. blured image c. The supply curve shifted to t...

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You are given the following supply and demand equations: QD = 100 − 2P QS = 10 + P a. What will be the quantity demanded at a price of $40? b. What will be the quantity supplied at the price of $30? c. What is the equilibrium price and equilibrium quantity?

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a. The quantity demanded at the price of...

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What would happen to the equilibrium price and quantity of shirts if the price of cotton decreases and all else is held constant?


A) The price falls and the quantity rises.
B) The price rises and the quantity falls.
C) The price falls and the quantity falls.
D) The price rises and the quantity rises.
E) The price falls and the quantity remains constant.

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Higher input costs:


A) reduce profits.
B) increase profits.
C) shift the demand curve.
D) always happen during a recession.
E) provide an incentive to hire more workers.

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Which of the following will cause a movement along a good's supply curve?


A) an increase in the price of an input
B) the price of the good increases
C) the production process of the good becomes more efficient
D) more firms enter the market
E) the government places a subsidy on the producer of the good

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The difference between a tax and a subsidy is that when the government places a tax on a good, it _________ the equilibrium price and _________ the equilibrium quantity, whereas when the government places a subsidy on a good, it _________ the equilibrium price and _________ the equilibrium quantity.


A) increases; decreases; decreases; increases
B) increases; increases; decreases; decreases
C) decreases; decreases; increases; increases
D) decreases; increases; increases; decreases
E) increases; does not change; does not change; increases

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Which of the following scenarios would explain the change in equilibrium shown in the accompanying figure? Which of the following scenarios would explain the change in equilibrium shown in the accompanying figure? A) an increase in an input price B) a decrease in the number of buyers in a market C) an increase in the price of a substitute good D) an increase in the expected future price E) a negative technological change


A) an increase in an input price
B) a decrease in the number of buyers in a market
C) an increase in the price of a substitute good
D) an increase in the expected future price
E) a negative technological change

Correct Answer

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Oil is a main component in the manufacture of plastic bags. If the price of oil were to increase, the price of plastics bags would:


A) increase and the quantity would increase.
B) increase and the quantity would decrease.
C) decrease and the quantity would increase.
D) decrease and the quantity would decrease.
E) increase and the quantity would stay the same.

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The price of good X increases by 25%, causing the quantity consumed of good Y to decrease by 10%. If everything else is held constant in the economy, we can say with certainty that good X and good Y are:


A) substitutes.
B) inferior.
C) complements.
D) normal.
E) unrelated.

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Companies use advertising to shift consumer demand. Which of the following demand shifters do you think advertisers most often rely on?


A) changes in income
B) the price of related goods
C) changes in tastes and preferences
D) the number of buyers
E) expectations regarding the future price

Correct Answer

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James specializes in college-level economics tutoring. He knows that, during the two weeks before finals, he can charge more for an hour of private tutoring. Expecting this price increase, James will:


A) supply less tutoring now, shifting supply to the left.
B) supply more tutoring now, shifting supply to the right.
C) supply less tutoring now, shifting supply to the right.
D) supply more tutoring now, shifting supply to the left.
E) change the price of tutoring without any shift in supply.

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Refer to the accompanying diagram. Which of the following scenarios would explain this change in equilibrium? Refer to the accompanying diagram. Which of the following scenarios would explain this change in equilibrium? A) A number of firms left the market. B) A number of buyers entered the market, and a number of firms entered the market. C) The price of a complement of this good increased. D) The price of a substitute of this good increased. E) The price of this good decreased.


A) A number of firms left the market.
B) A number of buyers entered the market, and a number of firms entered the market.
C) The price of a complement of this good increased.
D) The price of a substitute of this good increased.
E) The price of this good decreased.

Correct Answer

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As more people migrated West during the gold rush, what do you think happened to the demand curve in most Western markets, holding all else constant?


A) The demand curve shifted to the right.
B) The demand curve shifted to the left.
C) There was no shift, but there was an increase in quantity demanded.
D) There was no shift, but there was a decrease in quantity demanded.
E) There was no shift, nor any increase or decrease in quantity demanded.

Correct Answer

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A "twofold" change is when:


A) income goes up and then it goes down.
B) the equilibrium price of both a complement and a substitute changes.
C) supply and demand both shift.
D) equilibrium price and equilibrium quantity both change.
E) some input costs go up and some go down.

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