Question 1

Whats defention of terms:
-inferior goods

Accepted Answer

The answer of Whats defention of terms:
-inferior goods...

Question 2

-Assume Diagram 27.1b represents the market for wheat bread. The shift in demand from D1 to D2 will

Accepted Answer

A)  cause equilibrium price to fall and equilibrium quantity to fall 
B)  cause equilibrium price to rise and equillibrium quantity to rise. 
C)  cause equilibrium price to fall and equilibrium quantity to rise. 
D)  cause equilibrium price to rise and equilibrium quantity to fall. 
A)  cause equilibrium price to fall and equilibrium quantity to fall 
B)  cause equilibrium price to rise and equillibrium quantity to rise. 
C)  cause equilibrium price to fall and equilibrium quantity to rise. 
D)  cause equilibrium price to rise and equilibrium quantity to fall.

Question 3

Whats defention of terms:
-demand schedule

Accepted Answer

The answer of Whats defention of terms:
-demand schedule...

Question 4

-Assume Diagram 27.1b represents the market for wheat bread. The shift in supply from S1 to S2 will

Accepted Answer

A)  cause equilibrium price to fall and equilibrium quantity to fall 
B)  cause equilibrium price to rise and equillibrium quantity to rise. 
C)  cause equilibrium price to fall and equilibrium quantity to rise. 
D)  cause equilibrium price to rise and equilibrium quantity to fall. 
A)  cause equilibrium price to fall and equilibrium quantity to fall 
B)  cause equilibrium price to rise and equillibrium quantity to rise. 
C)  cause equilibrium price to fall and equilibrium quantity to rise. 
D)  cause equilibrium price to rise and equilibrium quantity to fall.

Question 5

Understand and describe what happens when a market is not in equilibrium.
-Suppose that the demand schedule is given as
 $\begin{array}{rrrrrrrrr}
\mathrm{Q} & 20 & 22 & 24 & 26 & 28 & 30 & 32 & 34 \
\mathrm{P} & \$ 70 & 60 & 50 & 40 & 30 & 20 & 10 & 0
\end{array}$
 
a. Graph this data and find the vertical intercept. Assume the demand curve is everywhere linear.
b. Calculate an elasticity coefficient in the inelastic range of the demand curve.
c. Calculate an elasticity coefficient in the elastic range of the demand curve.
d. Find the point of unitary elasticity.
e. Find the point of maximum total revenue. What is the maximum total revenue at that point?

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Question 6

If the quantity demanded of bagels increases when the price of doughtnut increases, then bagels and doughnuts are

Accepted Answer

A)  substitutes. 
B)  complements. 
C)  necessities. 
D)  inferior. 
A)  substitutes. 
B)  complements. 
C)  necessities. 
D)  inferior.

Question 7

Understand and describe what happens when a market is not in equilibrium.
-Assume that the price of coffee is below equilibrium. What pressures would cause this market to tend toward equilibrium?

Accepted Answer

The answer of Understand and describe what happens when a...

Question 8

A good whose consumption increases when income increases

Accepted Answer

A)  is an inferior good. 
B)  is a complementary good. 
C)  is a substitute good. 
D)  is a normal good. 
A)  is an inferior good. 
B)  is a complementary good. 
C)  is a substitute good. 
D)  is a normal good.

Question 9

A movement along the same demand curve is referred to as

Accepted Answer

A)  an change in demand 
B)  a change in quantity demanded. 
C)  a change in the demand schedule. 
D)  an income effect. 
A)  an change in demand 
B)  a change in quantity demanded. 
C)  a change in the demand schedule. 
D)  an income effect.

Question 10

$\text { Table } 27 \text { a }$
$\begin{array}{ccc}
\hline\text {Price}&\text { Quantity Demanded}&\text { Quantity Demanded}\
&\text { in January}& \text {in February}\
\hline \$ 35,000 & 35,000 & 40,000 \
\hline \$ 30,000 & 40,000 & 45,000 \
\hline \$ 25,000 & 45,000 & 50,000 \
\hline \$ 20,000 & 50,000 & 55,000 \
\hline \$ 15,000 & 55,000 & 60,000 \
\hline
\end{array}$

-Assume Table 27a represents demand schedules for Ford Explorers. What might account for the difference between the January demand schedule and the February demand schedule?

Accepted Answer

A)  There was a shift in consumer preferences in favor of small, fuel efficient cars because of rising gasoline prices. 
B)  There was a decrease in consumer income in February. 
C)  There was a significant increase in the price of other Sport Utility Vehicles on the market. 
D)  Toyota and Honda announced special decreases on all their Sport Utility Vehicles in February. 
A)  There was a shift in consumer preferences in favor of small, fuel efficient cars because of rising gasoline prices. 
B)  There was a decrease in consumer income in February. 
C)  There was a significant increase in the price of other Sport Utility Vehicles on the market. 
D)  Toyota and Honda announced special decreases on all their Sport Utility Vehicles in February.

Question 11

Understand and describe what happens when a market is not in equilibrium.
-Use supply and demand to explain excess supply. What might cause excess supply? Describe the process that eliminates excess supply.

Accepted Answer

The answer of Understand and describe what happens when a...

Question 12

In the simple supply and demand diagram, equilibrium prices are determined by

Accepted Answer

A)  demand 
B)  supply 
C)  both supply and demand 
D)  the government 
A)  demand 
B)  supply 
C)  both supply and demand 
D)  the government

Question 13

Understand and describe what happens when a market is not in equilibrium.
-What does the measure of price elasticity try to capture? Why might this measure be useful information?

Accepted Answer

The answer of Understand and describe what happens when a...

Question 14

-In Diagram 27a, the supply curve represented by line S shows

Accepted Answer

A)  that there is a positive relationship between price and quantity supplied. 
B)  that there is an inverse relationship between price and quantity supplied. 
C)  that the relationship between price and quantity supplied it both positive and inverse. 
D)  that the relationship between price and quantity supplied is circular. 
A)  that there is a positive relationship between price and quantity supplied. 
B)  that there is an inverse relationship between price and quantity supplied. 
C)  that the relationship between price and quantity supplied it both positive and inverse. 
D)  that the relationship between price and quantity supplied is circular.

Question 15

Define cross-price elasticity and show how it is used to define necessity and luxury goods.
-Using cross-price elasticity, how is it determined whether a good is a complement or substitute?

Accepted Answer

The answer of Define cross-price elasticity and show how it...

Question 16

Define cross-price elasticity and show how it is used to define necessity and luxury goods.
-What is a complement and what is a substitute good? Give examples of goods that are complements and goods that are substitutes.

Accepted Answer

The answer of Define cross-price elasticity and show how it...

Question 17

$\text { Table } 27.1 \mathrm{a}$
$\begin{array}{ccc}
\hline \text {Price}& \text { Quantity Demanded }& \text {Quantity Supplied per}\
& \text {per month}&\text { month}\
\hline 35,000 & 35,000 & 55,000 \
\hline \$ 30,000 & 40,000 & 50,000 \
\hline \$ 25,000 & 45,000 & 45,000 \
\hline \$ 20,000 & 50,000 & 40,000 \
\hline 15,000 & 55,000 & 35,000 \
\hline
\end{array}$
-Assume Table 27.1a represents the supply and demand of Ford Explorers. If price is currently $30,000

Accepted Answer

A)  the market is in equilibrium. 
B)  there is excess demand. 
C)  there is excess supply. 
D)  there is both excess demand and excess supply 
A)  the market is in equilibrium. 
B)  there is excess demand. 
C)  there is excess supply. 
D)  there is both excess demand and excess supply

Question 18

Whats defention of terms:
-excess demand

Accepted Answer

The answer of Whats defention of terms:
-excess demand...

Question 19

Understand and describe what happens when a market is not in equilibrium.
-What are the main determinants of price elasticity of demand? What are the main determinants of price elasticity of supply?

Accepted Answer

The answer of Understand and describe what happens when a...

Question 20

Define and explain the basics of supply and demand analysis.
-State the law of demand. State the law of supply. What is meant by the phrase "…holding all other things constant?"

Accepted Answer

The answer of Define and explain the basics of supply...

Exam 27: Simple Analytics of Supply and Demand

Whats defention of terms: -inferior goods

-Assume Diagram 27.1b represents the market for wheat bread. The shift in demand from D1 to D2 will

Whats defention of terms: -demand schedule

-Assume Diagram 27.1b represents the market for wheat bread. The shift in supply from S1 to S2 will

If the quantity demanded of bagels increases when the price of doughtnut increases, then bagels and doughnuts are

Understand and describe what happens when a market is not in equilibrium. -Assume that the price of coffee is below equilibrium. What pressures would cause this market to tend toward equilibrium?

A good whose consumption increases when income increases

A movement along the same demand curve is referred to as

Understand and describe what happens when a market is not in equilibrium. -Use supply and demand to explain excess supply. What might cause excess supply? Describe the process that eliminates excess supply.

In the simple supply and demand diagram, equilibrium prices are determined by

Understand and describe what happens when a market is not in equilibrium. -What does the measure of price elasticity try to capture? Why might this measure be useful information?

-In Diagram 27a, the supply curve represented by line S shows

Define cross-price elasticity and show how it is used to define necessity and luxury goods. -Using cross-price elasticity, how is it determined whether a good is a complement or substitute?

Define cross-price elasticity and show how it is used to define necessity and luxury goods. -What is a complement and what is a substitute good? Give examples of goods that are complements and goods that are substitutes.

Whats defention of terms: -excess demand

Understand and describe what happens when a market is not in equilibrium. -What are the main determinants of price elasticity of demand? What are the main determinants of price elasticity of supply?

Define and explain the basics of supply and demand analysis. -State the law of demand. State the law of supply. What is meant by the phrase "…holding all other things constant?"

Prehistoric Communal Institutions in the Middle East

Communal Equality to Slavery in the Middle East

Slavery to Feudalism in Western Europe

Feudalism and Paternalism in England

Feudalism to Capitalism in England

Mercantilism in England

Pre-Capitalism to Industrial Capitalism in the United States 1776-1865

Classical Liberalism Defense of Industrial Capitalism

Socialist Protest Against Industrial Capitalism

Marx Critique and Alternative to Capitalism

Rise of Corporate Capitalism in the United States, 1865-1900

Neoclassical Economics Defense of Corporate Capitalism

Veblen Critique of Corporate Capitalism

Growth and Depression in the United States, 1900-1940

Keynesian Economics and the Great Depression

The United States and Global Capitalism, 1940-2006

Robinson Crusoe Two Perspectives on Microeconomics

The Two Americas Inequality, Class, and Conflict

Inequality, Exploitation, and Economic Institutions

Prices, Profits, and Exploitation

Market Power and Global Corporations

Economics of Racial and Gender Discrimination

Environmental Devastation

Government and Inequality

Economic Democracy

Scarcity and Choice Neoclassical View

Consumption Theory: Demand

Production Theory Supply

Costs of Production

Work and Wages Neoclassical View of Income Distribution

Prices and Profits in Perfect Competition

Monopoly, Power, Prices, and Profits

Monopolistic Competition and Oligopoly

Market Failures Public Goods, Market Power, and Externalities

History of Business Cycles and Human Misery

National Income Accounting How to Map the Circulation of Money and Goods

Money and Profit Says Law and Institutionalist Criticism

Neoclassical View of Aggregate Supply and Demand

Keynesian View of Aggregate Supply and Demand

How to Measure Instability

Consumer Spending and Labor Income

Investment Spending and Profit

The Multiplier

Business Cycles and Unemployment

Growth and Waste

Fiscal Policy

Government Spending and Taxes

Money, Banking, and Credit

Inflation

Monetary Policy

Exports and Imports

International Trade, Investment, and Finance How Instability Spreads Around the World

Debate on Globalization

Debate on Free Trade

Development

Filters

-Assume Diagram 27.1b represents the market for wheat bread. The shift in demand from D₁ to D₂ will

-Assume Diagram 27.1b represents the market for wheat bread. The shift in supply from S₁ to S₂ will