Exam 2: The Basics of Supply and Demand

Suppose that the resale of tickets to professional football games is illegal in Missouri.Due to the high demand for Chiefs (who play in Kansas City,Missouri)tickets there is a shortage of tickets at the current ticket price.Given that the Chiefs will not raise the price at which they sell the tickets,what would be the result of allowing tickets to be resold in a secondary market at whatever price the market would support? If speculators entered the market and began buying tickets directly from the Chiefs in hopes of reselling the tickets later,what would happen to the line outside of the ticket offices when the tickets are initially sold?

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Question 41

Other things being equal,the increase in rents that occurs after rent controls are abolished is smaller when

(Multiple Choice)

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Question 42

Which of the following represents the price elasticity of demand?

(Multiple Choice)

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Question 43

Assume that the current market price is below the market clearing level.We would expect:

(Multiple Choice)

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Question 44

For computers and other business equipment,small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment,and the long-run income response tends to be smaller.Industries that face demand behavior of this type are known as:

(Multiple Choice)

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Question 45

The introduction of refrigerators into American homes:

(Multiple Choice)

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Question 46

Suppose that due to more stringent environmental regulation it becomes more expensive for steel production firms to operate.Also,recent technological advances in plastics has reduced the demand for steel products.Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of steel.Can we say with certainty that the market price for steel will fall? Why?

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Question 47

Which of the following will NOT cause a rightward shift in the demand curve for beer?

(Multiple Choice)

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Question 48

Suppose the cable TV industry is currently unregulated.However,due to complaints from consumers that the price of cable TV is too high,the legislature is considering placing a price ceiling on cable TV below the current equilibrium price.Assuming the government does make this price ceiling law,please construct a diagram that shows the impact of this law on the cable TV market,and please briefly explain the effects on market prices and quantities with supply and demand analysis.Also,if the cable TV company is worried about disgruntling customers,the company may introduce a different type of programming that is cheaper for the company to provide yet is equally appealing to customers.What would be the effects of this action?

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Question 49

Which of the following statements about the diagram below is true?

(Multiple Choice)

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Question 50

Which of the following will cause the demand curve for Beatles' compact discs to shift to the right?

(Multiple Choice)

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Question 51

When the government controls the price of a product,causing the market price to be above the free market equilibrium price,

(Multiple Choice)

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Question 52

The monthly supply of desktop personal computers is given by the equation Q_S = 15,000 + 43.75P.At a price of $800,what is the price elasticity of supply?

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Question 53

Suppose the U.S.government imposes a maximum price of $5 per gallon of gasoline,and the current equilibrium price is $3.50 per gallon.This policy represents a:

(Multiple Choice)

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Question 54

You are analyzing the demand for good X.Which of the following will result in a shift to the right of the demand curve for X?

(Multiple Choice)

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Question 55

The currency used by the Confederate States of America during its brief existence from 1861 to 1865 has become a collector's item today.The Confederate Currency supply is perfectly inelastic.As the demand for the collectible increases and some of the old currency is destroyed or no longer of value as a collectible,what happens to the market price?

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Question 56

A freeze in Florida's orange growing regions will:

(Multiple Choice)

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Question 57

Which of the following pairs of goods are most likely to have a negative cross price elasticity of demand?

(Multiple Choice)

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Question 58

Suppose that a small market Major League Baseball team currently charges $12 for a ticket.At this price,they are able to sell 12,000 tickets to each game.If they raise ticket prices to $15,they would sell 11,053 tickets to each game.What is the price elasticity of demand at $12? If the demand curve is linear,what is the algebraic expression for demand?

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Question 59

Use the following two statements to answer this question: I.The supply of newly mined copper is more elastic in the long run than in the short run. II.The supply of scrap copper is more elastic in the short run than in the long run.

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Question 60

Showing 41 - 60 of 106

Other things being equal,the increase in rents that occurs after rent controls are abolished is smaller when

Which of the following represents the price elasticity of demand?

Assume that the current market price is below the market clearing level.We would expect:

For computers and other business equipment,small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment,and the long-run income response tends to be smaller.Industries that face demand behavior of this type are known as:

The introduction of refrigerators into American homes:

Which of the following will NOT cause a rightward shift in the demand curve for beer?

Which of the following statements about the diagram below is true?

Which of the following will cause the demand curve for Beatles' compact discs to shift to the right?

When the government controls the price of a product,causing the market price to be above the free market equilibrium price,

The monthly supply of desktop personal computers is given by the equation Q_S = 15,000 + 43.75P.At a price of $800,what is the price elasticity of supply?

Suppose the U.S.government imposes a maximum price of $5 per gallon of gasoline,and the current equilibrium price is $3.50 per gallon.This policy represents a:

You are analyzing the demand for good X.Which of the following will result in a shift to the right of the demand curve for X?

A freeze in Florida's orange growing regions will:

Which of the following pairs of goods are most likely to have a negative cross price elasticity of demand?

Use the following two statements to answer this question: I.The supply of newly mined copper is more elastic in the long run than in the short run. II.The supply of scrap copper is more elastic in the short run than in the long run.

Preliminaries

Consumer Behavior

Individual and Market Demand

Uncertainty and Consumer Behavior

Production

The Cost of Production

Profit Maximization and Competitive Supply

The Analysis of Competitive Markets

Market Power: Monopoly and Monopsony

Pricing With Market Power

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Markets for Factor Inputs

Investment,time and Capital Markets

General Equilibrium and Economic Efficiency 1-83

Markets With Asymmetric Information

Externalities and Public Goods

Filters

Exam 2: The Basics of Supply and Demand

Other things being equal,the increase in rents that occurs after rent controls are abolished is smaller when

Which of the following represents the price elasticity of demand?

Assume that the current market price is below the market clearing level.We would expect:

For computers and other business equipment,small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment,and the long-run income response tends to be smaller.Industries that face demand behavior of this type are known as:

The introduction of refrigerators into American homes:

Which of the following will NOT cause a rightward shift in the demand curve for beer?

Which of the following statements about the diagram below is true?

Which of the following will cause the demand curve for Beatles' compact discs to shift to the right?

When the government controls the price of a product,causing the market price to be above the free market equilibrium price,

The monthly supply of desktop personal computers is given by the equation QS = 15,000 + 43.75P.At a price of $800,what is the price elasticity of supply?

Suppose the U.S.government imposes a maximum price of $5 per gallon of gasoline,and the current equilibrium price is $3.50 per gallon.This policy represents a:

You are analyzing the demand for good X.Which of the following will result in a shift to the right of the demand curve for X?

A freeze in Florida's orange growing regions will:

Which of the following pairs of goods are most likely to have a negative cross price elasticity of demand?

Use the following two statements to answer this question: I.The supply of newly mined copper is more elastic in the long run than in the short run. II.The supply of scrap copper is more elastic in the short run than in the long run.

Preliminaries

Consumer Behavior

Individual and Market Demand

Uncertainty and Consumer Behavior

Production

The Cost of Production

Profit Maximization and Competitive Supply

The Analysis of Competitive Markets

Market Power: Monopoly and Monopsony

Pricing With Market Power

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Markets for Factor Inputs

Investment,time and Capital Markets

General Equilibrium and Economic Efficiency 1-83

Markets With Asymmetric Information

Externalities and Public Goods

Filters

The monthly supply of desktop personal computers is given by the equation Q_S = 15,000 + 43.75P.At a price of $800,what is the price elasticity of supply?