Exam 5: Using Supply and Demand

After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside OPEC. OPEC during this time was unable to restrain output among members in its effort to lift oil prices. What best describes these events?

At a Chicago Bulls game 20,000 tickets were sold at $30 apiece. The game was sold out and some people did not get tickets. This suggests that the selling price:

Singapore has a system of traffic regulation called Electronic Road Pricing, in which traffic congestion is reduced by charging motorists who drive into the city center during certain hours of the day. Charging for use of a road is:

If the United States imposes tariffs on steel imports the:

If government were to issue a fixed number of licenses to produce a good or provide a service, this would likely:

Suppose that initially, the equations for demand and supply are Qd = 48 − 4P and Qs = 4P − 16, respectively. If the quantity demanded increases by 12 at every price (so that the demand curve shifts to the right), the equilibrium price will change from:

Stricter environmental regulations and increased demand for energy have caused an increase in the demand for relatively clean natural gas. In the last several years, improved extraction technologies and new discoveries have increased the availability of natural gas. What has been the net effect on price and quantity for natural gas?

Given the equations for demand and supply: Qd = 48 − 4P and Qs = 4P − 16, respectively, the market is in equilibrium when the quantity bought and sold is:

When an effective price ceiling is removed, we would expect the price of the good to:

Real-world experience shows that when weather conditions reduce crop yields, the price of agricultural products will fall.

Refer to the graph shown that depicts a third-party payer market for prescription drugs. What is the cost of this program to the third-party if a $2 co-pay is established?

Refer to the following graph. Which of the following pairs of equations describes the supply and demand curves?

When the polio vaccine first became available in the United States, the government controlled the price with an effective price ceiling. Production of the vaccine was not sufficient to fill all orders and the government had to regulate its distribution. Had the vaccine been sold without government intervention, the shortage would have been eliminated by price:

Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 − 2.5P and Qs = − 20 + 1.5P, respectively. The government decides to impose a price ceiling of $50 per ton. The possible black market price after the ceiling is:

Suppose that there is a renewed interest in eating caviar at the same time that the supply of Russian caviar shrinks. What would be the most likely effect of these events on the price and quantity of caviar sold?

Refer to the table shown that depicts a third-party payer market. What is the price the supplier will charge for the quantity consumers demand if a $1 co-pay is established? Price Quantity Demanded Quantity Supplied \ 0 1,200 0 \ 1 600 150 \ 2 300 300 \ 3 0 450 \ 4 0 600 \ 5 0 750 \ 6 0 900 \ 7 0 1,050

A tariff is:

Refer to the following graph. Which of the following pairs of equations describes the supply and demand curves?

Refer to the graph shown. A quantity restriction of Q_R will:

Refer to the following graph. If this graph represents the supply of and demand for an imported product, a tariff of t will result in revenue for the government shown by area: