Consider a market characterized by the following demand and supply conditions: PX = 50 – 5QX and PX = 32 + QX. The equilibrium price and quantity are, respectively,
Correct answer(s):
- $35 and 3 units.
Topic
Demand and Supply
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Quizzes in Demand and Supply
Consider a market characterized by the following demand and supply conditions: PX = 15 – 2QX and PX = 3 + 2QX. The equilibrium price and quantity are, respectively,
Correct answer(s):
- $9 and 3 units.
An excise tax of $1.00 per gallon of….
Correct answer(s):
- by more than $1.00 per gallon.
If A and B are complementary goods, a decrease in the price of good A would:
Correct answer(s):
- lead to an increase in demand for B.
If A and B are substitute goods, a decrease in the price of good A would:
Correct answer(s):
- lead to a decrease in demand for B.
If A and B are substitute goods, an increase in the price of good A would:
Correct answer(s):
- lead to an increase in demand for B.
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.