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Exam 3: Demand, Supply, and Market Equilibrium

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Question 61

Multiple Choice

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Which of the following would cause a leftward shift in the supply curve for car washes?

A) an increase in the number of cars in the city
B) a decrease in taxes on car washes
C) an increase in the price of car washing equipment
D) a decrease in the price of water

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Question 62

Multiple Choice

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Refer to the diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market

A) supply has decreased and equilibrium price has increased.
B) demand has increased and equilibrium price has decreased.
C) demand has decreased and equilibrium price has decreased.
D) demand has increased and equilibrium price has increased.

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Question 63

Multiple Choice

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Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5 both are running out of beads to sell (they can't keep up with the quantity demanded at that Price) , then we would expect both Camille's and Julia's to

If the price of a product decreases, we would expect

An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

(Advanced analysis) The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q. The equilibrium quantity is

If products C and D are close substitutes, an increase in the price of C will

If the price of Pepsi decreases, other factors constant, then we'd expect to see a consequent shift of the demand curve for

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) Of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An improvement in the technology used to produce X will

Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?

$\begin{array} { | c | c | c | c | c | } \hline ( 1 ) & ( 2 ) & ( 3 ) & ( 4 ) & \text { (5) } \\Q _ { d } & Q _ { d } & \text { Price } & Q _ { S } & Q _ { S } \\\hline 50 & 40 & \$ 10 & 70 & 80 \\\hline 60 & 50 & 9 & 60 & 70 \\\hline 80 & 60 & 8 & 50 & 60 \\\hline 90 & 70 & 7 & 40 & 50 \\\hline 100 & 80 & 6 & 30 & 40 \\\hline\end{array}$ Refer to the table. In relation to column (3) , a change from column (2) to column (1) would indicate a(n)

(Last Word) In examining the relationship between student loans and college tuition, researchers found that

The idea of the Law of Demand, as applied to electric cars, assumes which of the following to be constant?

Which statement is true about supply?

Productive efficiency refers to

Assume in a competitive market that price is initially above the equilibrium level. We can predict that price will

Which of the following statements is correct?

If there was initially a shortage in the market for a product, then

An "increase in the quantity supplied" suggests a

(Advanced analysis) The demand for commodity X is represented by the equation P = 100 - 2Q and supply by the equation P = 10 + 4Q. The equilibrium quantity is