Question 1

What is the difference between a shortage and scarcity?
A.Scarcity will almost always exist, but a shortage will exist only if the price is kept below the equilibrium level.
B.Scarcity is a result of two or more alternative uses, and quantities of supply and demand adjusting to flexible prices will create shortages.
C.A shortage will exist when a good is scarce.
D.There is no distinction between the two.
E.They are the same thing.

Accepted Answer

The answer of What is the difference between a shortage...

Question 2

Figure: Demand and Supply of Gasoline
   (Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline.What might cause the supply curve to shift from S2 back to the initial supply curve S1? 
A.The Organization of Petroleum Exporting Countries (OPEC) restricts the production of crude oil.
B.The Organization of Petroleum Exporting Countries (OPEC) increases the production of crude oil.
C.Americans want to buy more gas.
D.Technology in the refinement of gasoline greatly improves.

Accepted Answer

The answer of Figure: Demand and Supply of Gasoline
 ...

Question 3

Figure: Demand and Supply of Gasoline
(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline.Given the equilibrium after a change in supply from S1 to S2:
A.at the old price of $2.50, there will be pressure for the price to fall.
B.the new price will be $2.00.
C.the new quantity will be 600.
D.the price will remain constant.

Accepted Answer

The answer of Figure: Demand and Supply of Gasoline
(Figure: Demand...

Question 4

If the supply and demand curves intersect at a price of $14, then any price below that would result in:
A.a shortage.
B.a surplus.
C.equilibrium.
D.an increase in demand.

Accepted Answer

If the supply and demand curves intersect at a price of $14, it means that at that price the quantity supplied equals the quantity demanded. Any price below $14 would result in a shortage because the quantity demanded exceeds the quantity supplied at that price, leading to an excess demand.

Question 5

Figure: Demand and Supply of Gasoline
   (Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline.When the supply curve shifted from the initial equilibrium, the new intersection of supply and demand has a price of and quantity of 400.This supply shift could have resulted from
________. 
A.$1.50; an increase in consumers' income
B.$1.50; an increase in refining technology
C.$2.00; an increase in the number of buyers
D.$2.00; an increase in consumers' income

Accepted Answer

The answer of Figure: Demand and Supply of Gasoline
 ...

Question 6

If the quantity supplied in a market exceeds the quantity demanded in a market, we would expect prices to:
A.stay the same.
B.rise.
C.fall.
D.rise in order to clear the market.

Accepted Answer

The answer of If the quantity supplied in a market...

Question 7

Figure: Demand and Supply of Gasoline
(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline.A factor that may have changed supply from S1 to S2 is:
A.better technology in the production of gasoline.
B.increased demand.
C.lower labor productivity in gasoline production.
D.increased prices of substitutes for gasoline.

Accepted Answer

The answer of Figure: Demand and Supply of Gasoline
(Figure: Demand...

Question 8

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.A shortage of 210 bags of chocolate-covered peanuts exists if the price is
________ per bag.
A.$0.80
B.$0.60
C.$0.40
D.$0.30

Accepted Answer

The answer of (Table: The Market for Chocolate-Covered Peanuts) Look...

Question 9

Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124 units.If the price of good X is $2:
A.there will be excess demand for good X.
B.there will be an excess supply of good X.
C.the market will clear.
D.the quantity demanded of good X will be less than 124 units.

Accepted Answer

When the price of a good is below its equilibrium price, the quantity demanded exceeds the quantity supplied, leading to excess demand.

Question 10

If the supply and demand curves intersect at a price of $47, then any price above that would result in:
A.a shortage.
B.a surplus.
C.equilibrium.
D.an increase in demand.

Accepted Answer

At a price above the equilibrium price of $47, the quantity supplied would exceed the quantity demanded, leading to a surplus.

Question 11

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.If the price of chocolate-covered peanuts is $0.50, there is:
A.a surplus of 35 bags per month.
B.a shortage of 35 bags per month.
C.a surplus of 70 bags per month.
D.a shortage of 70 bags per month.

Accepted Answer

The answer of (Table: The Market for Chocolate-Covered Peanuts) Look...

Question 12

Figure: Demand and Supply of Gasoline
(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline.Given the initial equilibrium of S1 and D, any price lower than will create pressure for
the price to _.
A.$2.00; fall
B.$2.50; rise
C.$3.00; rise
D.$2.50; fall

Accepted Answer

The answer of Figure: Demand and Supply of Gasoline
(Figure: Demand...

Question 13

Figure: The Demand and Supply of Wheat
   (Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat.What is the equilibrium price in this wheat market? 
A.$6
B.$4
C.$2
D.$8

Accepted Answer

The answer of Figure: The Demand and Supply of Wheat
...

Question 14

A competitive market with flexible prices and many buyers and sellers will:

Accepted Answer

In a competitive market, prices can fluctuate depending on supply and demand. If there is a surplus of goods, prices will fall until the surplus is eliminated. If there is a shortage of goods, prices will rise until the shortage is eliminated. Eventually, the market will reach equilibrium where the quantity demanded equals the quantity supplied and there is neither a shortage nor a surplus. Therefore, a competitive market with flexible prices and many buyers and sellers will eliminate surpluses and shortages and reach equilibrium.

Question 15

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.If the price of chocolate-covered peanuts is $0.80, there is:
A.a surplus of 140 bags per month.
B.a shortage of 140 bags per month.
C.a surplus of 70 bags per month.
D.a shortage of 70 bags per month.

Accepted Answer

The answer of (Table: The Market for Chocolate-Covered Peanuts) Look...

Question 16

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.A surplus of 210 bags of chocolate-covered peanuts exists if the price is
________ per bag.
A.$0.90
B.$0.80
C.$0.60
D.$0.40

Accepted Answer

The answer of (Table: The Market for Chocolate-Covered Peanuts) Look...

Question 17

Figure: The Demand and Supply of Wheat
   (Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat.A price of ________ will result in a _. 
A.$6; shortage
B.$8; surplus
C.$8; shortage
D.$4; surplus

Accepted Answer

The answer of Figure: The Demand and Supply of Wheat
...

Question 18

Figure: The Demand and Supply of Wheat
   (Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat.If a price of $10 temporarily exists in this market: 
A.a shortage of 10,000 bushels will result.
B.a shortage of 8,000 bushels will result.
C.a surplus of 8,000 bushels will result.
D.a surplus of 4,000 bushels will result.

Accepted Answer

The answer of Figure: The Demand and Supply of Wheat
...

Question 19

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.The equilibrium quantity and the equilibrium price are bags and
________.
A.140; $0.40
B.175; $0.60
C.175; $0.80
D.210; $0.50

Accepted Answer

The equilibrium point is where the quantity demanded equals quantity supplied. In the table, this occurs at a price of $0.60 and a quantity of 175 bags. Therefore, option B is the correct choice.

Question 20

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:
A.is above the market equilibrium price.
B.will rise to clear the market.
C.will either rise or remain unchanged.
D.is below the market equilibrium price.

Accepted Answer

When the quantity of housing supplied exceeds the quantity demanded, it indicates that the existing price is above the market equilibrium price, leading to a surplus of houses.

Quiz 3: Supply and Demand

If the supply and demand curves intersect at a price of $14, then any price below that would result in: A.a shortage. B.a surplus. C.equilibrium. D.an increase in demand.

If the quantity supplied in a market exceeds the quantity demanded in a market, we would expect prices to: A.stay the same. B.rise. C.fall. D.rise in order to clear the market.

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.A shortage of 210 bags of chocolate-covered peanuts exists if the price is ________ per bag. A.$0.80 B.$0.60 C.$0.40 D.$0.30

Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124 units.If the price of good X is $2: A.there will be excess demand for good X. B.there will be an excess supply of good X. C.the market will clear. D.the quantity demanded of good X will be less than 124 units.

If the supply and demand curves intersect at a price of $47, then any price above that would result in: A.a shortage. B.a surplus. C.equilibrium. D.an increase in demand.

Figure: Demand and Supply of Gasoline (Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline.Given the initial equilibrium of S1 and D, any price lower than will create pressure for the price to _. A.$2.00; fall B.$2.50; rise C.$3.00; rise D.$2.50; fall

Figure: The Demand and Supply of Wheat (Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat.What is the equilibrium price in this wheat market? A.$6 B.$4 C.$2 D.$8

A competitive market with flexible prices and many buyers and sellers will:

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.A surplus of 210 bags of chocolate-covered peanuts exists if the price is ________ per bag. A.$0.90 B.$0.80 C.$0.60 D.$0.40

Figure: The Demand and Supply of Wheat (Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat.A price of ________ will result in a _. A.$6; shortage B.$8; surplus C.$8; shortage D.$4; surplus

(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate- Covered Peanuts.The equilibrium quantity and the equilibrium price are bags and ________. A.140; $0.40 B.175; $0.60 C.175; $0.80 D.210; $0.50

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price: A.is above the market equilibrium price. B.will rise to clear the market. C.will either rise or remain unchanged. D.is below the market equilibrium price.