Refer to the table shown that depicts a third-party payer market. What is the cost of this program to the third-party if a $2 co-pay is established? \[\begin{array} { | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \\ \hline \$ 0 & 1,200 & 0 \\ \hline \$ 1 & 600 & 150 \\ \hline \$ 2 & 300 & 300 \\ \hline \$ 3 & 0 & 450 \\ \hline \$ 4 & 0 & 600 \\ \hline \$ 5 & 0 & 750 \\ \hline \$ 6 & 0 & 900 \\ \hline \$ 7 & 0 & 1,050 \\ \hline \end{array}\]

A) $0 B) $150 C) $600 D) $1,200 A) $0 B) $150 C) $600 D) $1,200

Exam 5: Using Supply and Demand

Suppose the equilibrium price of oranges is $0.79 an orange, but government takes steps to prevent the price from exceeding $0.60 an orange. The likely result will be a:

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

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:

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

A musical group called "The Grateful Dead" sold out concert after concert and typically provided a good living for scalpers (who buy tickets and resell them).Explain (using a supply and demand diagram)how The Grateful Dead's ticket pricing policy set an effective ceiling on the price of concert tickets.If there were a fixed number of seats at their concerts,what was the shape of the supply curve for these seats?

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(Essay)

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Question 3

Correct Answer:

Verified

By setting a top ticket price at a level below the market-clearing price,the Grateful Dead guaranteed that there would be an excess demand for their concert tickets.This is illustrated in the diagram below.The official price (P_O)effectively sets a ceiling on the price that is below the market-clearing price.At this official price,there is an excess demand for tickets (Q_D > Q_S).The supply curve for tickets was vertical,since for any given show there were only so many seats available.

The effect of successful compliance with recycling regulation by homeowners on the market for recycled paper along with a concurrent rise in demand for products made with recycled paper is best shown by a shift to the right in the supply of and demand for recyclable paper and a certain drop in its price.

(True/False)

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Question 4

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

(Multiple Choice)

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Question 5

The Rent Control Authority of Chicago has found that total market demand for single occupancy apartments is Qd = 400,000 − 250 P. The Authority also noted that supply is given by Qs = 200,000 + 250P. Price of an apartment is measured in hundreds of dollars and quantity is measured in thousands of apartments. Suppose the Authority decides to impose a rent control of $300 per single-occupant apartment, how many people will be unable to find an apartment at that price?

(Multiple Choice)

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Question 6

Refer to the graph shown. If consumers have a $15 co-pay, total expenditure on the product by both the third party and the consumer will equal:

(Multiple Choice)

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Question 7

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

(True/False)

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Question 8

Refer to the table shown that depicts a third-party payer market. What is the cost of this program to the third-party if a $2 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

(Multiple Choice)

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Question 9

Refer to the graph shown. Given supply, S0, and demand, D, what tariff would the government have to impose on lumber imported from Canada to reduce imports to 600 tons?

(Multiple Choice)

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Question 10

Suppose that the free market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 − 5W. If the minimum wage were set at $2.50 an hour, how many people would not be able to find work?

(Multiple Choice)

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Question 11

Refer to the following graph. A government-imposed price floor of $2 will result in:

(Multiple Choice)

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Question 12

European Union subsidizes its farmers. How do these subsidies make it difficult for farmers in developing economies to compete in the world farm market?

(Multiple Choice)

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Question 13

Demonstrate graphically and explain verbally the impact on supply and demand equilibrium of an effective price ceiling.

(Essay)

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Question 14

Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold?

(Multiple Choice)

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Question 15

Start by drawing a supply and demand equilibrium situation.Using your diagram,demonstrate graphically and explain verbally the impact of an increase in demand and an increase in supply on equilibrium price and quantity.

(Essay)

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Question 16

Suppose a price floor is imposed on eggs above their equilibrium price. The likely result will be:

(Multiple Choice)

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Question 17

Quantity restrictions become more valuable to those holding the rights to sell the good when:

(Multiple Choice)

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Question 18

Some years ago, Stuyvesant Town and Peter Cooper Village in Manhattan were sold for redevelopment. These villages had been rent controlled, but now that these neighborhoods are no longer rent controlled, one would expect the:

(Multiple Choice)

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Question 19

Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans). At the same time, the price of diesel fuel, used by fishermen to fuel their boats, falls. What is the effect on the market for fish?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 163

Exam 5: Using Supply and Demand

Suppose the equilibrium price of oranges is $0.79 an orange, but government takes steps to prevent the price from exceeding $0.60 an orange. The likely result will be a:

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:

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

Refer to the graph shown. If consumers have a $15 co-pay, total expenditure on the product by both the third party and the consumer will equal:

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

Refer to the table shown that depicts a third-party payer market. What is the cost of this program to the third-party if a $2 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

Refer to the graph shown. Given supply, S0, and demand, D, what tariff would the government have to impose on lumber imported from Canada to reduce imports to 600 tons?

Suppose that the free market labor supply and labor demand equations are given by Qs = 5W and Qd = 30 − 5W. If the minimum wage were set at $2.50 an hour, how many people would not be able to find work?

Refer to the following graph. A government-imposed price floor of $2 will result in:

European Union subsidizes its farmers. How do these subsidies make it difficult for farmers in developing economies to compete in the world farm market?

Demonstrate graphically and explain verbally the impact on supply and demand equilibrium of an effective price ceiling.

Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold?

Start by drawing a supply and demand equilibrium situation.Using your diagram,demonstrate graphically and explain verbally the impact of an increase in demand and an increase in supply on equilibrium price and quantity.

Suppose a price floor is imposed on eggs above their equilibrium price. The likely result will be:

Quantity restrictions become more valuable to those holding the rights to sell the good when:

Some years ago, Stuyvesant Town and Peter Cooper Village in Manhattan were sold for redevelopment. These villages had been rent controlled, but now that these neighborhoods are no longer rent controlled, one would expect the:

Suppose a scientific report states that fish contain dangerously high levels of mercury (toxic to humans). At the same time, the price of diesel fuel, used by fishermen to fuel their boats, falls. What is the effect on the market for fish?

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Economic Institutions

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Describing Supply and Demand: Elasticities

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