Question

1. Consider the following supply schedules for Kelby, Jack, and Kate, who are the only suppliers...

1. Consider the following supply schedules for Kelby, Jack, and Kate, who are the only suppliers in the market for Good Y:


    Kelby   Jack   Kate
Price   Units Produced
$5   12   8   4
$4   11   6   3
$3   9   4   2
$2   5   2   1
$1   2   1   0

If the market sees 15 units of Good Y exchanged, what is the likeliest price in the market?

A. $1
B. $2
C. $3
D. $4
E. $5

2. Given that the cross-price elasticity of goods Bee and Zee is −20 and the quantity of Bee decreases by 40 percent, which of the following statements is correct?

A. They are substitutes, and the price of Zee goes up by 2 percent.
B. They are substitutes, and the price of Zee goes down by 2 percent.
C. They are complements, and the price of Zee goes up by 2 percent.
D. They are complements, and the price of Zee goes down by 2 percent.
E. They are complements, and the price of Zee goes down by 8 percent.

3. Which of the following is most likely to occur if a competitive market has moved from one equilibrium to another?

A.An increase in demand lowers the equilibrium price and increases the equilibrium quantity.
B.An increase in supply lowers the equilibrium price and increases the equilibrium quantity.
C.A decrease in demand and increase in supply will cause equilibrium price to increase but make equilibrium quantity indeterminate.
D. An increase in demand will decrease equilibrium price, quantity, and producer surplus.
E. An increase in supply increases the equilibrium price and quantity and lowers producer surplus.

4. A government imposes a per-unit tax on light bulbs in a competitive market. Afterward, the seller's after-tax price increases from the original equilibrium price of $12 to $14. The marginal cost of lightbulbs was $9 before the tax and $12 after the tax was implemented. The quantity supplied decreases from a before-tax quantity of twelve thousand bulbs per month to ten thousand bulbs per month after the tax. Based on this, which of the following is true?

A. Total expenditures on light bulbs increase after the tax.
B. The amount of deadweight loss is $20,000 after the tax.
C. Total revenue earned by light bulb producers increases after the tax.
D. The total tax revenue collected by the government is $30,000 per month.
E. Consumers and producers are sharing an equal percentage of the tax burden.

5. A business notices that after it lowered its price it saw more quantity demanded but lower total revenue. What does this mean?

A. It is operating at productive inefficiency.
B. It is experiencing diminishing marginal returns.
C. It is in the elastic part of the demand curve for its product.
D. It is in the inelastic part of the demand curve for its product.
E. Its product's elasticity coefficient must be greater than one.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Consider the individual supply and demand schedules below: a. In the below chart, sum the...
1. Consider the individual supply and demand schedules below: a. In the below chart, sum the market supply and demand for cookies: Price Cerise Amonette Rose Market Demand Tollhouse Girl Scouts Market Supply $0 8 5 4 0 0 $1 6 4 3 2 1 $2 4 3 2 4 5 $3 2 2 1 7 6 $4 1 1 0 8 10 b. Use the above Market Demand and Supply Schedule to draw the supply and demand curves. Indicate...
Mark “T” for true and “F” for false. 1. A perfectly competitive market consists of products...
Mark “T” for true and “F” for false. 1. A perfectly competitive market consists of products that are all slightly different from one another. 2. An oligopolistic market has only a few sellers. 3. The law of demand states that an increase in the price of a good decreases the demand for that good. 4. If apples and oranges are substitutes, an increase in the price of apples will decrease the demand for oranges. 5. If golf clubs and golf...
1. Consider the following demand and supply curves: P 20 18 16 14 Q 0 1...
1. Consider the following demand and supply curves: P 20 18 16 14 Q 0 1 2 3 P 2 3 4 5 Q 0 1 2 3 a. What is the equation of this demand function? b. What is the equation of this supply function? c. Solve for equilibrium price and quantity. D. The market demand and supply for jet fuel is provided by the following functions: Qd = 140 - P Qs = -160 + 4P Where: P=...
1. The market for toasters is a competitive market. Suppose that the quantity of toasters supplied...
1. The market for toasters is a competitive market. Suppose that the quantity of toasters supplied per year depends as follows on the price of a toaster: Price (dollars per toaster) Quantity supplied (millions of toasters) 32 4.0 34 5.0 36 5.5 38 6.0 40 6.5 a. On a piece of graph paper, plot the supply curve for toasters. b. How does the quantity supplied of toasters change when the price changes? 2. The market for toasters is a competitive...
1. Consider the individual supply and demand schedules below: a. In the below chart, sum the...
1. Consider the individual supply and demand schedules below: a. In the below chart, sum the market supply and demand for cookies: b. Use the above Market Demand and Supply Schedule to draw the supply and demand curves. Indicate the market equilibrium price and quantity. c. Draw the effect of an increase in the price of milk, a compliment to cookies, on the cookie market. Describe if and how this changes equilibrium quantity and price. d. What effect does the...
4. In the below chart, sum the market supply and demand for tacos and burritos: Price...
4. In the below chart, sum the market supply and demand for tacos and burritos: Price Jack August Nala Market Demand Chipotle Del Taco Market Supply $0 5 3 6 0 0 $1 4 2 5 2 1 $2 2 1 4 4 3 $3 1 0 2 6 5 $4 0 0 1 8 7 Use the above Market Demand and Supply Schedule to draw the supply and demand curves. Indicate the market equilibrium price and quantity. Draw the...
Question 1.  Draw a supply-and-demand graph for cotton sweatshirts to show the effect of a hurricane in...
Question 1.  Draw a supply-and-demand graph for cotton sweatshirts to show the effect of a hurricane in South Carolina that damages the cotton crop. Does this result in a supply shift, demand shift, or both? Why? What happens to equilibrium price and quantity? Question 2.  A technological advance reduces the cost of manufacturing smart phones.  Draw a supply and demand graph to show what happens to the market for smart phone cases (not smart phones). (Hint: Consider whether smart phones and smart phone...
Consider the market for pizza in Middleton, Ontario, whose demand and supply schedules are given in...
Consider the market for pizza in Middleton, Ontario, whose demand and supply schedules are given in the table below. Price of Pizza ($) Quantity Demanded Quantity Supplied 10 0 6 9 1 5 8 2 4 7 3 3 6 4 2 5 5 1 4 6 0 3 7 0 2 8 0 1 9 0 Graph the demand and supply curve. What is the consumer surplus and producer surplus? Suppose the government were to impose a sales tax...
Suppose that supply and demand are given by and ?? = 20 − 2? ?? =...
Suppose that supply and demand are given by and ?? = 20 − 2? ?? = ? − 7 A. Determine the equilibrium price and quantity B. What are the inverse supply and demand functions? C. What would the new inverse supply function b if there were a new ad valorum tax of 10 percent of the sales price payable by the supplier? D. Draw by hand the shift in the supply curve (old and new supply curves) as well...
1. Presented below are demand and supply schedules for bread in East Yeastville, Colorado.                             &
1. Presented below are demand and supply schedules for bread in East Yeastville, Colorado.                                                                              |   price | quantity demanded | quantity supplied |            | ($/loaf) | (loaves / week)   | (loaves / week) |            |   5.00   |       1000        |       6000        |            |   4.50   |       1300        |       4500        |            |   4.00   |       1600        |       4000        |            |   3.50   |       2000        |       3500        |            |   3.00   |       3000        |       3000        |            |  ...