Question 1

What is a price ceiling and what are its economic effects?

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Question 2

What is a price floor, and what are its economic effects?

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Question 3

Use supply and demand analysis to explain what is most likely to happen to the price and quantity of pink salmon when there is a large increase in the supply of pink salmon due to technological improvements in fishing boats that make them larger and more efficient and at the same time there is a small decrease in demand for pink salmon as consumers' tastes change to preferring other kinds of fish.

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Question 4

Compare changes in the equilibrium price and quantity when demand increases in a market with an upward sloping supply curve and in a market with a vertical supply curve.

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Question 5

What are some of the ways that Uber has been innovative?

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Question 6

Use supply and demand analysis to explain what is most likely to happen to price and quantity in a market for a crop such as lettuce, tomatoes, or oranges, when extreme weather destroys a large portion of the crop.

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Question 7

Currently the federal U.S. government aims to make college more affordable by offering federal student loans at low interest rates. Discuss the effect this has had on tuition costs.

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Question 8

What is productive efficiency, and how does a market achieve allocative efficiency?

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Question 9

"If demand increases and supply decreases, then both the equilibrium price and quantity will increase." What conditions are necessary to make this statement true?

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Question 10

How is a preset price similar to a government-imposed price ceiling or a price floor? How is a preset price different from a government-imposed price ceiling or price floor?

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Question 11

Rather than subsidizing federal student loans for students, how might the U.S. government use the supply of higher education to reduce the cost of attending college?

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Quiz 3: Demand, Supply, and Market Equilibrium