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Exam 4: Demand, supply, and Equilibrium

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Question 31

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Other things remaining the same,a leftward shift in the supply curve will lead to a(n) ________.

A) decrease in the equilibrium price and the equilibrium quantity
B) increase in the equilibrium price and the equilibrium quantity
C) decrease in the equilibrium price and an increase in the equilibrium quantity
D) increase in the equilibrium price and a decrease in the equilibrium quantity

E) B) and C)
F) A) and D)

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Question 32

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The figure below shows Sue's and Carlos' demand curves for gasoline. It would be useful to find the equation of the demand curves to answer the questions below. -Refer to the figure above.The total demand curve has the vertical intercept at ________ and the horizontal intercept at ________,and its slope ________.

A) 15.00 euros; 7,000 liters; changes at 10.00 euros
B) 15.00 euros; 7,000 liters; changes at 8.12 euros
C) 18.00 euros; 7,000 liters; is twice as steep as Sue's demand curve
D) 10.00 euros; 7,000 liters; is half as steep as Carlos's demand curve

E) B) and D)
F) B) and C)

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Question 33

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Assume that the economy is in a recession and consumers are expecting a fall in their income levels.This will cause a(n) ________.

An increase in the price of aviation fuel will cause which of the following for the supply of flights from New York to Los Angeles?

An increase in the demand for a good is represented by ________.

What will happen to the equilibrium price and quantity of cars if there is an increase in the price of gasoline?

The development of genetically modified soybean seeds such as Roundup Ready seeds lowered tillage costs for soybean growers.How will this technological advance affect the supply of soybeans?

Which of the following is true of a market?

The figure below shows the supply curves for gasoline for two oil companies (MaxOil and MagnusPetro) . It would be useful to find the equations of the two supply curves to answer the questions below. -Refer to the figure above.Suppose that MaxOil and MagnusPetro merged and became a single company,Empoleum.Then,all else being equal,the ________.

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve. -Refer to the figure above.When the demand curve for flash drives is D and the supply curve of flash drives is S₁,what is the shortage in the market if the price is $4?

The following table shows the market demand schedule and supply schedule for notebooks. -Refer to the table above.What is the shortage in the market when the price of a notebook is $3?

Which of the following is likely to cause the demand curve for cars to shift to the left?

Which of the following could explain why there was a stampede at the Richmond International Raceway where 1,000 laptops were being sold at $50 each?

Which of the following does NOT have a market in the real world?

In 2007,an unseasonably dry spring led to a sharp decline in the quantity harvested of black morels,a wild mushroom found throughout the upper Midwest.Due to the scant harvest,the price of black morels rose from $9 per pound to nearly $45 per pound.In 2008,slightly above-normal rainfall levels led to a large black morel harvest.Assuming that the demand for black morels did not change from 2007 to 2008,we would expect the 2008 black morel supply to ________ and the equilibrium price of black morels to ________.

Based on the derived market quantity supplied,what is the increase in market quantity supplied of soybeans if the price of soybeans increases from $4.00 per bushel to $5.00 per bushel?

Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal) .If the consumers' willingness to pay for the hundredth unit is $7.00 and the seller's willingness to accept for the hundredth unit is $10.00,then the equilibrium ________.

Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by a ________.

Differentiate between a change in demand and a change in quantity demanded.

The numbers in the table below characterize the market for raccoon skins in Minnesota during the 2010-2011 trapping season. The demand schedule that prevailed in November and December of 2010 is denoted by "Original Quantity Demanded," and the demand schedule that prevailed from late January onward is denoted by "Quantity Demanded-Late January." -Refer to the table above.Given the original demand,at a price of $22 per raccoon skin,there is a ________.