FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Demand, Supply, and Equilibrium

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The figure below shows Sueʹs and Carlosʹ 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. If the price of gasoline is 3.00 euros per liter, the total quantity of gasoline demanded is ________ liters.

A) 1,600
B) 2,400
C) 4,300
D) 5,100

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following best describes the difference between a demand curve and a demand schedule?

A) A demand curve can be derived from a demand schedule, but a demand schedule cannot be derived from a demand curve.
B) A demand curve is a graphical representation of the relationship between the quantity of a good and its price, whereas a demand schedule is a tabular representation.
C) A demand curve shows the different quantities of a good demanded at different prices, whereas a demand schedule shows the different quantities of a good demanded at different incomes.
D) A demand curve shows the different quantities of a good demanded at different incomes, whereas a demand schedule shows the different quantities of a good demanded at different prices.

Correct Answer

verified

B

Question 3

Multiple Choice

Review LaterAdd Note

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. The total demand curve has the vertical intercept at ________ and its slope changes at ________.

Why do economists study perfectly competitive markets even though few, if any, markets in the real world are perfectly competitive?

Suppose that, when you arrive at the sale site for $50 Apple laptops (described in the text) at 1:45 A.M., you find more than 2,000 people already waiting for the site to open. You turn around and go home to get some sleep. Later you buy an Apple laptop, the same model as the $50 one, for $1,070. This indicates that________.

Suppose that the government imposes a price control on gasoline where the legal price is set at $1.50 per gallon while the equilibrium price would be $2.25. A shortage ensues. Worried that you may not have enough gas to commute to school and do errands, you get up before dawn to go to a gas station to fill up the tank. But you find yourself waiting in a long line. Fortunately, the station did not run out of gas before your turn came up, and you were happy to drive away with a full tank. -Refer to the scenario above. For the last gallon of gas that the seller is willing to produce at $1.50, the consumers are willing to pay ________.

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, through a negotiation with the labor union representing its workforce, reduced its contribution to workers? health insurance. Meanwhile, MagnusPetro successfully negotiated to lower the price of ethanol (to be blended with its gasoline) with a supplier. How do these changes affect the supply curves?