Exam 2: An Introduction to Economic Systems and the Workings of the Price System

If the price of a can of Pepsi increase from $0.50 to $0.75, and the price of a can of Coke also increases from $0.50 to $0.75:

Transition economies are making uneven progress in the transformation of their economic systems.

Suppose all prices double. As a result:

In a market economy, consumers are assumed to:

Suppose the supply of cellular telephones increases. We would expect:

Voluntary exchange will occur when:

Use the following diagram to answer the following questions. -Refer to Unit. The equilibrium price and quantity of housing is:

The market price of Sheryl Crow concert tickets is $40 per ticket. Excess supply would exist if the market price was $30 per ticket.

Division of labor implies specialization of economic activity.

A schedule showing the quantity of computers that producers are willing to supply at different prices is:

The market for housing is in equilibrium when the quantity of housing demanded is equal to the quantity of housing supplied.

As the price of a good increases, the quantity of the good supplied will decrease.

Suppose there is excess supply in the market for PokÈmon toys. We would expect to find:

Use the following diagram to solve the following problems. -Refer to Price Per Unit. What are the equilibrium price and the equilibrium quantity of apartments?

Use the following diagram to solve the following problems. -Refer to Price Per Unit. If the quantity of apartments is 1000, what is the demand price?

The law of demand states that the quantity demanded of a good is negatively related to the good's price.

Use the following diagram to answer the following questions. -Refer to Pen. If the supply price increases from $1 to $3 per pen, the quantity supplied:

The law of demand states that, other things constant, there is:

Use the following diagram to answer the following questions. -Refer to Coffee. Suppose the demand for coffee increases from D₁ to D₂. If price did not change, we would expect:

Use the following diagram to answer the following questions. -Refer to Tea. Suppose the supply for tea decreases from S₂ to S₁. The immediate effect would be to increase the supply price for Q₁ from: