FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Demand and Supply

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

William Gregg owned a mill in South Carolina.In December 1862,he placed a notice in the Edgehill Advertister announcing his willingness to exchange cloth for food and other items.Here is an extract: 1 yard of cloth for 1 pound of bacon 2 yards of cloth for 1 pound of butter 4 yards of cloth for 1 pound of wool 8 yards of cloth for 1 bushel of salt If the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel,people would ________.

A) buy bacon and trade it for cloth because they could buy 8 yards of cloth for only $1.60, and use that cloth to obtain a bushel of salt
B) not buy bacon and trade it for cloth because they would have to buy 8 yards of cloth for $1.60 and then give Mr.Gregg an extra $0.40 to buy a bushel of salt
C) buy bacon and trade it for cloth and then trade the cloth for salt because salt is more important for life than either cloth or bacon
D) not buy bacon and trade it for cloth because the relative price of 1 bushel of salt is only 1/8 yard of cloth
E) buy bacon and trade it for cloth because cloth is more expensive than bacon

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Use the table below to answer the following questions. Table 3.5.1 The Market for Car-Seat Heaters -Refer to Table 3.5.1.Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns.As a result,demand decreases by 100 heaters at each price.Simultaneously,the cost of production rises,and supply decreases by 100 heaters at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

A) 70;450
B) 70;350
C) 50;450
D) 50;350
E) 60;300

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Use the figure below to answer the following questions. Figure 3.4.2 -When a shortage occurs,there is a tendency for the

A shift of the supply curve for rutabagas occurs if there is

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.If the price is $7,then the surplus is

Use the figure below to answer the following questions. Figure 3.2.1 -Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

The law of demand states that,other things remaining the same,

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for beer.If the price of pizza,a complement of beer rises,what is the new beer equilibrium,ceteris paribus?

Use the figure below to answer the following questions. Figure 3.4.2 -A shortage is the amount by which quantity

Suppose income increases.Choose the correct statement.

Which of the following "other things" are not held constant along a demand curve?

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.A shortage occurs if

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for beans.If the price of peas,a substitute for beans rises,what is the new beans equilibrium,ceteris paribus?

Since 1980,there has been a dramatic increase in the number of working mothers.Based on this information alone,we can predict that the market for child care services has experienced

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result,the equilibrium price of

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for tacos.A new scientific study reveals that tacos cause bad breath.Simultaneously,the cost of producing tacos decreases.What is the new equilibrium,ceteris paribus?

When the price of good A rises,the supply curve of good B shifts rightward.Which of the following statements are true?

A decrease in the quantity supplied of a good is shown by

Use the figure below to answer the following questions. Figure 3.5.1 -The price of a good will rise if

The relative price of a good is all of the following except