Question 1

Assume in a competitive market that price is initially above the equilibrium level.We can predict that price will:

Accepted Answer

A)   decrease,quantity demanded will decrease,and quantity supplied will increase.
B)   decrease and quantity demanded and quantity supplied will both decrease.
C)   decrease,quantity demanded will increase,and quantity supplied will decrease.
D)   increase,quantity demanded will decrease,and quantity supplied will increase.E) A) and C)
F) A) and D)

Question 2

In constructing a stable demand curve for product X:

Accepted Answer

A)   consumer preferences are allowed to vary.
B)   the prices of other goods are assumed to be constant.
C)   money incomes are allowed to vary.
D)   the supply curve of product X is assumed to be fixed.E) None of the above
F) A) and D)

Question 3

Which one of the following would cause a leftward shift in the supply curve for car washes?

Accepted Answer

A)   an increase in the number of cars on the street
B)   an increase in the price of car washing equipment
C)   a decrease in youth unemployment
D)   a decrease in the price of waterE) B) and C)
F) All of the above

Question 4

A headline reads "Lumber Prices Up Sharply." In a competitive market,this situation would lead to a(n) :

Accepted Answer

A)   increase in the price and quantity of new homes.
B)   decrease in the price and quantity of new homes.
C)   increase in the price of new homes and a decrease in the quantity of new homes.
D)   decrease in the price of new homes and an increase in the quantity of new homes.E) B) and D)
F) A) and D)

Exam 3: Demand, Supply, and Market Equilibrium

Which one of the following would cause a leftward shift in the supply curve for car washes?

Correct Answer
verified

Assume in a competitive market that price is initially above the equilibrium level.We can predict that price will:

Correct Answer
verified

A headline reads "Lumber Prices Up Sharply." In a competitive market,this situation would lead to a(n) :

Correct Answer
verified

In constructing a stable demand curve for product X:

Correct Answer
verified

Exam 3: Demand, Supply, and Market Equilibrium

Which one of the following would cause a leftward shift in the supply curve for car washes?

Correct AnswerverifiedShow Answer

Assume in a competitive market that price is initially above the equilibrium level.We can predict that price will:

Correct AnswerverifiedShow Answer

A headline reads "Lumber Prices Up Sharply." In a competitive market,this situation would lead to a(n) :

Correct AnswerverifiedShow Answer

In constructing a stable demand curve for product X:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified