FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Supply,demand,and Price: Applications

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Profit can be earned by buying _____________ and selling ____________________.

A) at one price; at the same price
B) low; high
C) high: low
D) none of the above

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following statements is false?

A) People who live in cities with good weather receive that benefit for free.
B) People who own property in cities with good weather receive higher rents,ceteris paribus.
C) Housing prices are higher in cities with better weather,ceteris paribus.
D) The demand for housing is higher in cities with good weather,ceteris paribus.

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

The price of good B has a pattern such that P = $20 on Monday through Thursday of every week,and P = $25 on Fridays.If speculators begin participating in the market for good B,their actions will likely lead to a(n) ______________ in the price of good B on Monday through Thursday and a(n) _______________ in the price of good B on Friday.

-Refer to Exhibit 5-5.If the airline charges price P₂ for both aisle seats and middle seats,the result will be

-Refer to Exhibit 5-3 which shows the demand and supply of a college athlete.Suppose that NCAA rules limit the amount that the college can pay this athlete,such that their payment can not exceed the cost of attending the college (currently,$8,000) .What is the consumers' surplus for the college (with respect to this one athlete) ?

The supply curve for seats in a traditional college classroom is horizontal.

People who buy houses in good-weather locations receive this benefit absolutely for free.

At college X and at college Y,students pay $3,000 less than the equilibrium tuition.If the supply of openings is the same at both colleges,it follows that a shortage of openings will be greater at

-Refer to Exhibit 5-5.If the airline charges a price that is higher than P₂,the result will be a ________________ of middle seats and a ____________ of aisle seats.

In a given community,if the government builds more freeways,then the supply curve for freeway space shifts rightward and the demand curve for freeway space shifts leftward.

Suppose that a subsidy is provided for the consumption of good ABC,and the subsidy is different for different units of good ABC (e.g.,$10 subsidy on the first unit of good ABC and $7 on the second unit of good ABC,etc.) .The demand curve with such a subsidy will lie to the ______________ of the demand curve without a subsidy,__________ parallel to the demand curve without any subsidy.

The supply curve for space on a freeway is perfectly vertical at any given point in time.

The objective of speculators is to buy at one price and sell at a lower price.

When the government _____________ mortgage lending standards,the indirect result is likely to be _____________ home prices.

-Refer to Exhibit 5-5.If the airline charges a price that is between P₁ and P₂ for both aisle seats and middle seats,the result will be

The lower the price of medical care in general,the higher the ____________________________ medical care and the ______________________ specific items that make up medical care (such as x-rays) .

If more people join carpools and travel to work together

If the government enacts legislation which allows lenders to lower lending standards,the government indirectly___________ the demand for which leads to _________ house prices.

As the price of good Z falls,the quantity demanded of good Z rises,but the quantity supplied of good Z does not change.Based upon this information we can conclude that the demand curve for good Z is ________________ and the supply curve for good Z is ________________.

If the quantity demanded of medical care is higher at a zero price than at some positive price,then it follows that the demand for those specific items that make up health care will be higher (than it would be if the quantity demanded of health care were lower).