FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Demand, Supply, and Market Equilibrium

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The ride-sharing service Uber uses "surge pricing":

A) to undercut the prices charged by taxi companies.
B) because equilibrium prices do not exist in the ride-sharing market.
C) to discourage customers from wanting rides during off-peak hours.
D) to attract more drivers when demand for rides suddenly increases.

E) C) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Refer to the above diagram for good R. A shift in the supply curve from S₂ to S₁ would best be explained by:

A) government imposing a tax on good R.
B) a decrease in the price of resources used to produce good R.
C) an increase in the price of good R.
D) an improvement in the technology used to produce good R.

E) B) and C)
F) A) and B)

Correct Answer

verified

A

Question 3

Multiple Choice

Review LaterAdd Note

Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the quantity of coffee demanded illustrated by the shift from point a to point b?

Assume a drought in the Great Plains reduces the supply of wheat. Since wheat is a basic ingredient in the production of bread and potatoes are a consumer substitute for bread, we would expect the price of wheat to:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. - A decrease in the number of consumers of product X will:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. - An improvement in the technology used to produce X will:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. - A reduction in the number of firms producing X will:

In 2007 the price of oil increased, which in turn caused the price of natural gas to rise. This can best be explained by saying that oil and natural gas are:

- Refer to the above diagram. A shortage of 160 units would be encountered if price was:

Refer to the above diagram for good X. A shift from D₂ to D₁ would best be explained by:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. - An increase in income, if X is a normal good, will:

Suppose that in 2008, Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2009, 600,000 Mustangs were sold at an average price of $22,500 per car. These statements:

Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. Given D₀, if the supply curve moved from S₀ to S₁, then:

- Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves. In this market the indicated shift in demand may have been caused by:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. - Consumers expect that the price of X will rise sharply in the future. At the same time, technology used in producing X improves. When both of these occur, what outcome will occur with greatest certainty?

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. -An increase in the price of a product that is a close substitute for X will:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. -An increase in the price of a product that is a complement to X will:

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. - The price of complementary consumer good Y rises. At the same time, government creates subsidies for firms producing X. When both of these occur, what outcome will occur with greatest certainty?

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. -An increase in the tastes and preferences for X will:

- Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves. In this market: