An heat wave hits the East Coast. What happens to ice cream sales in New England?

demand and supply shift to the right

What is the relationship between marginal revenue and price?

marginal rev is one more of something and price is amt paid

When a price ceiling is imposed above the equilibrium price,

the equilibrium outcome prevails

All the following shift the demand curve for automobiles to the right except:

a brand new automobile dealership opens in town

Supply curve is sloped upward because:

as price increases, suppliers are willing to produce more

If the cost of computer components falls, then

the supply curve for computers shifts to the right

Cheese/butter are substitutes. Demand for butter rises, what happens to mkt equilib in cheese

price will go down and quantity will go down

When there is a shortage, producers raise prices in an attempt to

Equalize the quantity supplied and demanded

Nachos/salsa are complements. The price of nachos rises, what happens to the market for salsa

The equilibrium quantity of salsa will decrease.

Suppliers often reduce prices because they

Have a surplus of products to sell

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Supply/Demand and Market Equilibrium

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#market equilibrium #costs of production

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Questions 19

Answers

1
An heat wave hits the East Coast. What happens to ice cream sales in New England?
shift in demand curve to the left, price increases
demand and supply shift to the right
shift in supply curve, price increases
shift in supply curve, price decreases
2
What is the relationship between marginal revenue and price?
it's complicated
marginal rev is one more of something and price is amt paid
Marginal revenue is one of the key determinants of price
they're the same
3
When a price ceiling is imposed above the equilibrium price,
a surplus results
there is not enough information provided
the equilibrium outcome prevails
a shortage results
4
A price ceiling results in
surplus
shortage
nothing changes
equilibrium
5
If the gov't adds a tax of 0.50 to Monster in 2 weeks, what happens today to the market
demand for Monster increases
price increases and demand increases
price of Monster increases
demand for Monster decreases
6
What happens in airline travel when price of traveling by rail decreases
supply curve shifts right
demand curve shifts left
demand curve shifts right
supply curve shifts left
7
When a price ceiling is imposed above the equilibrium price
not enough information to choose
the equilibrium price prevails
a shortage results
a surplus results
8
All the following shift the demand curve for automobiles to the right except:
the local factory gives a big raise to its employees
the price of gasoline falls
a brand new automobile dealership opens in town
price of steel declines reducing the price of automobiles
9
A price floor is where in relation to the equilibrium point
below
above
it is the equilibrium point
its too complicated
10
Supply curve is sloped upward because:
as price increases, suppliers are willing to produce more
as price increases, so do costs
as price increases, suppliers earn higher profits
as price increases, consumers demand less
11
If the cost of computer components falls, then
the supply curve for computers shifts to the right
the supply curve for computers shifts to the left
the demand curve for computers shifts to the left
the demand curve for computers shifts to the right
12
A price ceiling is where in relation to the equilibrium point?
above
on the equilibrium point
below
it's too complicated
13
Cheese/butter are substitutes. Demand for butter rises, what happens to mkt equilib in cheese
price will go up and quantity will go up
price will go down and quantity will rise
price will go down and quantity will go down
price will go up and quantity will drop
14
When there is a shortage, producers raise prices in an attempt to
Equalize the quantity supplied and demanded
Separate the quantity supplied and demanded
Lower the quantity supplied
Raise the quantity demanded
15
Nachos/salsa are complements. The price of nachos rises, what happens to the market for salsa
The supply curve for nachos will shift to the left.
The equilibrium quantity of salsa will decrease.
The equilibrium price of nachos will increase.
The demand curve for nachos will shift to the right.
16
If demand curve shifts right, then we move up and to the right along the supply curve
false
not enough information
true
17
A price floor results in
shortage
nothing changes
surplus
equilibrium
18
If the equilibrium price is $600 and the quantity demanded is 10, what is the quantity supplied
590
6000
10
610
19
Suppliers often reduce prices because they
Want to increase the product supply
Have a shortage of products to sell
Have a surplus of products to sell
Want to decrease consumer demand

Supply/Demand and Market Equilibrium Flashcards | StudBud