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Other things held constant, the lower the price of a good
Correct answer(s):
- the lower the producer surplus.
Other things held constant, the higher the price of a good
Correct answer(s):
- the greater the producer surplus.
Other things held constant, the lower the price of a good
Correct answer(s):
- the greater the consumer surplus.
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price floor of $9 will result in a
Correct answer(s):
- surplus of 30 units.
Suppose supply decreases and demand increases. What effect will this have on the quantity?
Correct answer(s):
- it may rise or fall.
Suppose supply decreases and demand increases. What effect will this have on the price?
Correct answer(s):
- it will rise.
Suppose both supply and demand increase. What effect will this have on the equilibrium quantity?
Correct answer(s):
- it will rise.
Suppose both supply and demand increase. What effect will this have on the equilibrium price?
Correct answer(s):
- it may rise or fall.
The seller side of the market is known as the:
Correct answer(s):
- supply side.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.
Correct answer(s):
- $1
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus producers receive when an $8 per unit price floor is imposed on the market.
Correct answer(s):
- $33
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus consumers receive when an $8 per unit price floor is imposed on the market.
Correct answer(s):
- $1
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. An $8 per unit price floor will result in a
Correct answer(s):
- surplus of 2 units.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor.
Correct answer(s):
- 1 unit and $6 per unit.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the equilibrium price and quantity in this market.
Correct answer(s):
- $6 and 2 units, respectively.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus received by consumers and producers.
Correct answer(s):
- $4 and $4, respectively.
Suppose the market supply for good X is given by QX S = -100 + 5PX. If the equilibrium price of X is $100 per unit then producers’ revenue from X is
Correct answer(s):
- cannot be determined from the information contained in the question.
Suppose the market supply for good X is given by QX S = -100 + 5PX. If the equilibrium price of X is $100 per unit then producer surplus is
Correct answer(s):
- $400.
Suppose the market demand for good X is given by QX d = 20 – 2PX. If the equilibrium price of X is $5 per unit then consumers’ expenditure on X is
Correct answer(s):
- $50
Suppose the market demand for good X is given by QX d = 20 – 2PX. If the equilibrium price of X is $5 per unit then consumer surplus is
Correct answer(s):
- $25