Table 3.1 $\begin{array}{|c|c|c|c|c|} \hline \begin{array}{c} \text { Loose Leaf Tea } \\ \text { Price per kg. } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Sunil's } \\ \text { Quantity } \\ \text { Demanded } \\ \text { (kgs) } \end{array} & \begin{array}{c} \text { Mia's } \\ \text { Quantity } \\ \text { Demanded } \\ \text { (kgs) } \end{array} & \begin{array}{c} \text { Rest of Market } \\ \text { Quantity } \\ \text { Demanded } \\ \text { (kgs) } \end{array} & \begin{array}{c} \text { Market } \\ \text { Quantity } \\ \text { Demanded } \\ \text { (kgs) } \end{array} \\ \hline \$ 8 & 4 & 0 & 30 & \\ \hline 6 & 7 & 2 & 40 & \\ \hline 5 & 9 & 3 & 51 & \\ \hline 4 & 12 & 5 & 64 & \\ \hline 3 & 15 & 8 & 90 & \\ \hline \end{array}$ -Refer to Table 3.1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

A) decrease by 32 kgs. B) increase by 64 kgs. C) increase by 32 kgs. D) decrease by 64 kgs. A) decrease by 32 kgs. B) increase by 64 kgs. C) increase by 32 kgs. D) decrease by 64 kgs.

Exam 3: Where Prices Come From: the Interaction of Demand and Supply

At the end of the recession in 2009, as incomes recovered, sales of Alcool NB Liquor's own brand of low-priced beer were low.At the same time sales of premium products rose.The decrease in demand for Alcool NB Liquor's low-priced beer despite the increase in incomes indicates that this brand of beer is considered a(n)

(Multiple Choice)

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Question 81

Figure 3.1 -Refer to Figure 3.1.A case in which consumers no longer cared for a product would be represented by a movement from

(Multiple Choice)

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Question 82

At a product's equilibrium price

(Multiple Choice)

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Question 83

The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded.

(True/False)

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Question 84

Table 3.1 Loose Leaf Tea Price per kg. (dollars) Sunil's Quantity Demanded (kgs) Mia's Quantity Demanded (kgs) Rest of Market Quantity Demanded (kgs) Market Quantity Demanded (kgs) \ 8 4 0 30 6 7 2 40 5 9 3 51 4 12 5 64 3 15 8 90 -Refer to Table 3.1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia)and the rest of the market.If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

(Multiple Choice)

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Question 85

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity.What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

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Question 86

Figure 3.8 -Refer to Figure 3.8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A). If worms eat half the apple crop how will the market equilibrium point change?

(Multiple Choice)

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Question 87

Assume there is a shortage in the market for digital music players.Which of the following statements correctly describes this situation?

(Multiple Choice)

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Question 88

If the price of automobiles was to increase, then

(Multiple Choice)

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Question 89

Table 3.2 Price per Bushel Quantity Demanded (bushels) Quantity Supplied (bushels) \ 3 30,000 0 6 26,000 4,000 9 22,000 9,000 12 18,000 12,000 15 15,000 15,000 18 12,000 22,000 21 8,000 28,000 24 4,000 36,000 -Refer to Table 3.2.The table contains information about the corn market.Use the table to answer the following questions. a.What are the equilibrium price and quantity of corn? b.Suppose the prevailing price is $9 per bushel.Is there a shortage or a surplus in the market? c.What is the quantity of the shortage or surplus? d.How many bushels will be sold if the market price is $9 per bushel? e.If the market price is $9 per bushel, what must happen to restore equilibrium in the market? f.At what price will suppliers be able to sell 22,000 bushels of corn? g.Suppose the market price is $21 per bushel.Is there a shortage or a surplus in the market? h.What is the quantity of the shortage or surplus? i.How many bushels will be sold if the market price is $21 per bushel? j.If the market price is $21 per bushel, what must happen to restore equilibrium in the market?

(Essay)

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Question 90

In June, buyers of titanium expect that the price of titanium will fall in July.What happens in the titanium market in June, holding everything else constant?

(Multiple Choice)

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Question 91

Table 3.3 Demand Supply P=80-QD P=50+1/2QS QD=80-P QS=2P-100 -Refer to Table 3.3.The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick.The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units.What is the value of consumer surplus?

(Multiple Choice)

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Question 92

If the price of hairspray is represented by equation P = 10 - 0.2 QD, then the corresponding quantity of hairspray demanded is represented by the equation

(Multiple Choice)

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Question 93

Figure 3.7 -Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for almonds.Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters?

(Multiple Choice)

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Question 94

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

(Essay)

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Question 95

Scarcity is defined as the situation that exists when the quantity demanded for a good is greater than the quantity supplied.

(True/False)

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Question 96

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result

(Multiple Choice)

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Question 97

During the recession of 2008-2009

(Multiple Choice)

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Question 98

Figure 3.5 -Refer to Figure 3.5.At a price of $5, the quantity sold

(Multiple Choice)

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Question 99

As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will rise.

(True/False)

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Question 100

Figure 3.1 -Refer to Figure 3.1.A case in which consumers no longer cared for a product would be represented by a movement from

At a product's equilibrium price

The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded.

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity.What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?

Figure 3.8 -Refer to Figure 3.8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A). If worms eat half the apple crop how will the market equilibrium point change?

Assume there is a shortage in the market for digital music players.Which of the following statements correctly describes this situation?

If the price of automobiles was to increase, then

In June, buyers of titanium expect that the price of titanium will fall in July.What happens in the titanium market in June, holding everything else constant?

Table 3.3 Demand Supply P=80-QD P=50+1/2QS QD=80-P QS=2P-100 -Refer to Table 3.3.The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick.The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units.What is the value of consumer surplus?

If the price of hairspray is represented by equation P = 10 - 0.2 QD, then the corresponding quantity of hairspray demanded is represented by the equation

Figure 3.7 -Refer to Figure 3.7.Assume that the graphs in this figure represent the demand and supply curves for almonds.Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters?

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

Scarcity is defined as the situation that exists when the quantity demanded for a good is greater than the quantity supplied.

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result

During the recession of 2008-2009

Figure 3.5 -Refer to Figure 3.5.At a price of $5, the quantity sold

As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will rise.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

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