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Exam 3: Demand, Supply, and Market Equilibrium

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Question 71

Multiple Choice

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Which would cause an increase in the supply curve of cell-phone services?

A) A decrease in the wages of phone-company workers
B) An increase in the price of cell-phone services
C) An increase in the taxes paid by cell-phone service providers
D) A decrease in a subsidy given to cell-phone service providers

E) None of the above
F) All of the above

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Question 72

Multiple Choice

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The market demand schedule or curve for a product shows the relationship between how much of the product buyers are willing and able to buy and the:

A) Product's price
B) Buyers' incomes
C) Cost of producing the product
D) Time period, say, from one month to the next

E) C) and D)
F) B) and C)

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Question 73

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Refer to the above graph showing the market for a product. Which of the following could not explain the indicated increase in equilibrium price from P₁ to P₂?

A news story states that "DVDs lose their appeal as consumers switch to online streaming for movies." In a competitive market for DVDs, this situation would lead to a(n) :

Consider the supply and demand curves depicted in the diagram above. If the government imposed a price ceiling of $15, then buyers will be intending to buy ___, but they will be able to legally buy ____.

A increase in demand coupled with a simultaneous and bigger decrease in supply will cause equilibrium:

Use the following graph of the demand for coffee: Refer to the above diagram of three demand curves for coffee. Which of the following would cause a shift in coffee demand from D₁ to D₂?

Refer to the above table. If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

If the newspapers report that there is a shortage of strawberries, it must mean that the current price of strawberries is below the equilibrium price.

If the decrease in supply is less than the decrease in demand, then the equilibrium price will decrease.

In the dollar-euro foreign exchange market, if many financial investors become worried about the stability of the euro and thus invest in U.S. financial assets instead of in European assets, then the:

All markets involve the following elements, except:

When high-school and college graduates apply for jobs in the labor markets,

"Price" in the statement of the Law of Demand refers to the same concept as the cost of producing the product.

In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate.

The development of a new production technique that lowers the cost of producing 3-D movies will shift the supply curve of 3-D movies to the right.

In a competitive market illustrated by the diagram above, a price floor of $25 per unit will result in:

The table below shows the weekly demand for hamburger in a market where there are just three buyers. Refer to the above table. If there were 200 buyers in the market, each with a demand schedule identical to Buyer 2 in the table above, then the weekly quantity of hamburger demanded in the market at a price of $4 would be:

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

If the price of oil increases significantly, buyers and sellers of gasoline will both expect the price of gasoline to also increase. If sellers of gasoline act on their expectations more than the buyers do, then: