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Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. The equilibrium price is:
Correct answer(s):
- $19
If a shortage exists in a market, the natural tendency is for:
Correct answer(s):
- price to increase.
Suppose the supply of good X is given by QS x = 10 + 2Px. How many units of good X are produced if the price of good X is 20?
Correct answer(s):
An ad valorem tax causes supply curve to:
Correct answer(s):
- become steeper.
Technological advances will cause the supply curve to:
Correct answer(s):
- shift to the right.
Changes in the price of a good lead to:
Correct answer(s):
- changes in the quantity supplied of the good.
For a steel factory, a decrease in the cost of electricity to the plant will cause the supply curve to:
Correct answer(s):
- shift to the right.
The economic principle that producers are willing to produce more output when price is high is depicted by the:
Correct answer(s):
- upward slope of the supply curve.
The law of supply states that, holding all else constant, as the price of a good falls:
Correct answer(s):
- quantity supplied falls.
The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:
Correct answer(s):
- market supply curve.
Other things held constant, the greater the price of a good
Correct answer(s):
- the lower the consumer surplus.
Suppose the demand for good X is given by…..
Correct answer(s):
- none of the statements associated with this question are correct.
Suppose the demand for good X is given by Qd x = 10 + axPx + ayPy + aMM. If aM is negative, then good y is:
Correct answer(s):
- an inferior good.
Suppose the demand for good X is given by Qd x = 10 + axPx + ayPy + aMM. If ay is positive, then:
Correct answer(s):
- goods y and x are substitutes.
Suppose the demand for good X is given by Qd x = 10 + axPx + ayPy + aMM. From the law of demand we know that ax will be:
Correct answer(s):
- less than zero.
The demand function recognizes that the quantity of a good consumed depends on:
Correct answer(s):
- demand shifters and price.
Which of the following can explain an increase in the demand for housing in retirement communities?
Correct answer(s):
- An increase in the population of the elderly.
Persuasive advertising influences demand by:
Correct answer(s):
- altering the underlying tastes of consumers.
Graphically, a decrease in advertising will cause the demand curve to:
Correct answer(s):
- shift leftward.
If A and B are complements, an increase in the price of good A would:
Correct answer(s):
- lead to a decrease in demand for B.