The marginal cost to produce a t-shirt is $5. If there is a constant per-unit tax on t-shirts, then which is FALSE:

Producers are worse off as a result of the tax

Which of the following statements about the market represented by the graph is correct?

at a price of $50.00, there is an excess supply of 15 million units

Based on the following graph, if the price of the good is currently $50.00, the price will:

fall, causing the quantity supplied to fall

In Canada, medical services are regulated by the Provinces. This type of regulation will likely result in...

Lower incomes for providers of medical services

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

A brand new automobile dealership opens in town

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Unit 2 - Supply and Demand

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Answers

1
If people are willing to buy more Androids when the the price of iPhones goes up, what's the relationship between them?
Both are compliments
Androids are normal goods
Both are substitutes
Iphones are inferior goods
2
Which of the following would be likely to shift the supply curve for Twix Bars to the left?
An increase in cocoa prices
A decrease in cocoa prices
An increase in price of Mars Bars
An improvement in productivity for the production
3
The marginal cost to produce a t-shirt is $5. If there is a constant per-unit tax on t-shirts, then which is FALSE:
Producers are worse off as a result of the tax
This tax will result in a deadweight loss.
Consumers are worse off as a result of the tax.
Spending on t-shirts may either increase or decrease because of the tax
4
An excise tax of $5/unit is charged, the price that is paid will equal __ and the price producers make after tax is __
$8; $3.
$6; $11.
$7; $12.
$5; $10.
5
A store orders 200 cases of Pepsi a week for $6/case. They sold 160 cases in a week. How will they attain equilibrium?
Shortage; price will fall
Shortage; price will rise
Surplus; price will rise
Surplus; price will fall
6
Which of the following statements about the market represented by the graph is correct?
at a price of $50.00, there is an excess supply of 15 million units
at a price of $50.00, there is an excess supply of 11 million units
at a price of $50.00, there is an excess demand of 15 million units
at a price of $50.00, there is an excess demand of 11 million units
7
Based on the following graph, if the price of the good is currently $50.00, the price will:
fall, causing the quantity demanded to fall
fall, causing the quantity supplied to fall
rise, causing the demand curve to shift to the right
rise, causing the supply curve to shift to the left
8
In Canada, medical services are regulated by the Provinces. This type of regulation will likely result in...
An increase in the quantity of medical services provided
Consumption of services such that the marginal benefit < marginal cost
Lower incomes for providers of medical services
Higher tax revenues for Provincial governments
9
All the following shift the demand curve for automobiles to the right except:
The price of electric scooters increases
The price of gasoline falls
The local factory gives a big raise to its employees
A brand new automobile dealership opens in town
10
How do price ceilings lead to inefficiencies in the market?
leads to a surplus in the market
causes shortages in the market
leads to surplus in raw material
leads to market equilibrium

Unit 2 - Supply and Demand Flashcards | StudBud