Question 1

1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market: A)  the equilibrium position has shifted from M to K. B)  an increase in demand has been more than offset by an increase in supply. C)  the new equilibrium price and quantity are both greater than they were originally. D)  point M shows the new equilibrium position." class="answers-bank-image d-inline" rel="preload" >
- 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:

Accepted Answer

A)   the equilibrium position has shifted from M to K.
B)   an increase in demand has been more than offset by an increase in supply.
C)   the new equilibrium price and quantity are both greater than they were originally.
D)   point M shows the new equilibrium position.E) C) and D)
F) None of the above

Question 2

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

Accepted Answer

A)   $1.10, that is, $1.60 minus $.50.
B)   $1.60.
C)   $1.00.
D)   $.50.E) A) and B)
F) A) and C)

Question 3

Dynamic pricing used by companies such as Uber:

Accepted Answer

A)   often results in shortages of desired products.
B)   has been declared illegal because it harms consumers.
C)   creates market prices that are consistently lower than those preset by firms or by law.
D)   allows market prices to adjust in real time to changes in supply and demand.E) B) and D)
F) C) and D)

Question 4

Refer to the above data. Equilibrium price is:

Accepted Answer

A)   $4.
B)   $3.
C)   $2.
D)   $1.E) A) and B)
F) A) and C)

Question 5

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Accepted Answer

A)   Less rental housing is available than if the rent controls were not in place.
B)   The quality of rental housing improves as landlords seek to attract the best tenants.
C)   Landlords are incentivized to produce and offer more rental units to maintain profits.
D)   All of these are consequences of rent controls.E) A) and B)
F) A) and C)

Question 6

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. 
-If X is an inferior good, a decrease in income will:

Accepted Answer

A)   decrease D, decrease P, and decrease Q.
B)   decrease D, decrease P, and increase Q.
C)   increase S, decrease P, and increase Q.
D)   increase D, increase P, and increase Q.E) A) and D)
F) All of the above

Question 7

- Refer to the above diagram. The equilibrium price and quantity in this market will be:

Accepted Answer

A)   $1.00 and 200.
B)   $1.60 and 130.
C)   $.50 and 130.
D)   $1.60 and 290.E) None of the above
F) C) and D)

Question 8

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. 
-Consumer expectations that the price of X will rise sharply in the future will:

Accepted Answer

A)   increase S, increase P, and increase Q.
B)   increase D, increase P, and increase Q.
C)   decrease S, increase P, and increase Q.
D)   increase D, decrease P, and increase Q.E) All of the above
F) C) and D)

Question 9

1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market the indicated shift in supply may have been caused by: A)  an increase in the wages paid to workers producing this good. B)  the development of more efficient machinery for producing this good. C)  this product becoming less fashionable. D)  an increase in consumer incomes." class="answers-bank-image d-inline" rel="preload" >  
-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 supply may have been caused by:

Accepted Answer

A)   an increase in the wages paid to workers producing this good.
B)   the development of more efficient machinery for producing this good.
C)   this product becoming less fashionable.
D)   an increase in consumer incomes.E) A) and B)
F) All of the above

Question 10

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 prices of resources used to produce X will:

Accepted Answer

A)   increase S, increase P, and increase Q.
B)   increase D, increase P, and increase Q.
C)   decrease S, decrease P, and decrease Q.
D)   decrease S, increase P, and decrease Q.E) A) and B)
F) A) and C)

Exam 3: Demand, Supply, and Market Equilibrium

Correct Answer
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Correct Answer
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Refer to the above data. Equilibrium price is:

Correct Answer
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Dynamic pricing used by companies such as Uber:

Correct Answer
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-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 supply may have been caused by:

Correct Answer
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- 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:

Correct Answer
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Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Correct Answer
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- Refer to the above diagram. The equilibrium price and quantity in this market will be:

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

Correct Answer
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Correct Answer
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Exam 3: Demand, Supply, and Market Equilibrium

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Refer to the above data. Equilibrium price is:

Correct AnswerverifiedShow Answer

Dynamic pricing used by companies such as Uber:

Correct AnswerverifiedShow Answer

-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 supply may have been caused by:

Correct AnswerverifiedShow Answer

- 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:

Correct AnswerverifiedShow Answer

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Correct AnswerverifiedShow Answer

- Refer to the above diagram. The equilibrium price and quantity in this market will be:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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-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 supply may have been caused by:

Correct Answer
verified

- 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:

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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