Question 1

When a surplus of rice occurs,

Accepted Answer

When there is a surplus of a product, it means that the quantity supplied is greater than the quantity demanded at the current price. As a result, suppliers will lower the price of the product in order to increase demand and reduce the surplus. Therefore, the price of rice falls when there is a surplus.

Question 2

If the price of carrots is below the equilibrium price, the

Accepted Answer

When the price of carrots is below the equilibrium price, the quantity demanded exceeds the quantity supplied, leading to a shortage, not a surplus.

Question 3

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (gallons of gasoline) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (gallons of gasoline) }
\end{array} \
\hline 3.73 & 337,982 & 441,074 \
3.68 & 396,398 & 428,008 \
3.65 & 412,031 & 412,031 \
3.62 & 417,899 & 391,665 \
\hline
\end{array}$$
-The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.65, then

Accepted Answer

At a price of $3.65, the quantity demanded and supplied are equal at 412,031 gallons, indicating that the gasoline market in Tulsa is in equilibrium.

Question 4

If there is a surplus of tacos, then the

Accepted Answer

When there is a surplus of tacos, it means there is an excess supply of tacos that is not being demanded by consumers. This indicates that the quantity of tacos demanded is less than the quantity of tacos supplied. Therefore, the best choice is option C.

Question 5

-The graph illustrates the supply of soda. If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Accepted Answer

When the price of soda rises, according to the law of supply, the quantity of soda supplied increases. This is because suppliers are more willing to produce and sell more at higher prices to increase profits.

Question 6

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (gallons of gasoline) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (gallons of gasoline) }
\end{array} \
\hline 3.73 & 337,982 & 441,074 \
3.68 & 396,398 & 428,008 \
3.65 & 412,031 & 412,031 \
3.62 & 417,899 & 391,665 \
\hline
\end{array}$$
-The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.73, then

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 7

Market equilibrium occurs when

Accepted Answer

Market equilibrium occurs when the quantity demanded by buyers equals the quantity of a good or service supplied by sellers, resulting in no excess supply or demand. It is the point where buyers and sellers are willing to trade at a mutually agreed-upon price, and it is the market-clearing price. Therefore, choice A is the correct option.

Question 8

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price, a

Accepted Answer

If the actual price is above the equilibrium price, it means that the price is too high and there is a surplus of oranges. This leads to a decrease in demand, and suppliers will lower the price to clear the surplus and restore equilibrium.

Question 9

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per gallon) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (gallons of gasoline) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (gallons of gasoline) }
\end{array} \
\hline 3.73 & 337,982 & 441,074 \
3.68 & 396,398 & 428,008 \
3.65 & 412,031 & 412,031 \
3.62 & 417,899 & 391,665 \
\hline
\end{array}$$
-The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.62, then

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 10

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Accepted Answer

The current price of $12 per pound is above the equilibrium price of $9 per pound, indicating a surplus. The excess supply of steak will lead to a decrease in price until it reaches the equilibrium price of $9 per pound, at which point quantity demanded and quantity supplied will be equal. This decrease in price will incentivize consumers to purchase more steak, increasing quantity demanded.

Question 11

Market equilibrium occurs when

Accepted Answer

Market equilibrium is a state where the quantity demanded by consumers equals the quantity supplied by producers at a specific price. In other words, there is no excess supply or demand. This point of balance is also known as the market-clearing price. Option B correctly defines the term.

Question 12

Market equilibrium i. can never occur because there are always people who want a good but cannot afford it.
Ii. occurs at the intersection of the supply and demand curves.
Iii. is the point where the price equals the quantity.

Accepted Answer

Market equilibrium occurs at the intersection of the supply and demand curves, where the quantity supplied equals the quantity demanded.

Question 13

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (dollars per } \
\text { cellular phone) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { demanded } \
\text { (thousands) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { supplied } \
\text { (thousands) }
\end{array} \
\hline 100 & 50 & 100 \
80 & 55 & 80 \
50 & 60 & 60 \
20 & 100 & 40 \
\hline
\end{array}$$
-Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is

Accepted Answer

The equilibrium quantity is the quantity where the quantity demanded and quantity supplied are equal. From the table, we can see that at a price of $50, quantity demanded is 60 and quantity supplied is 60, which means that this is the equilibrium price and equilibrium quantity. Therefore, the answer is C) 60,000 and $50.

Question 14

As a falling price eliminates a surplus in the jersey market,

Accepted Answer

When a price falls, it does not shift the demand or supply curves but moves along them. A lower price makes the product more attractive to consumers, increasing the quantity demanded.

Question 15

-The graph illustrates the supply of sweaters. A fall in the price of sweaters brings

Accepted Answer

A fall in the price of sweaters results in a movement along the supply curve to a point where the quantity supplied is lower, which is described by both A (a movement along the supply curve) and B (a decrease in the quantity supplied of sweaters).

Question 16

When there is a surplus of snowboards, the

Accepted Answer

A surplus occurs when the quantity supplied exceeds the quantity demanded, meaning there are more snowboards available than consumers want to buy at the current price.

Question 17

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

Accepted Answer

When the current price is below the equilibrium price, it means that the quantity demanded exceeds the quantity supplied, leading to a shortage. In response to a shortage, prices typically rise to reach equilibrium, and as prices rise, the quantity demanded decreases.

Question 18

A surplus of cardboard boxes means that

Accepted Answer

A surplus means that there is excess supply, which implies that the quantity supplied exceeds the quantity demanded at the current price. This option is only represented by choice B.

Question 19

If the price is below the equilibrium price,

Accepted Answer

When the price is below the equilibrium price, the quantity demanded exceeds the quantity supplied, leading to a shortage.

Question 20

When there is a shortage of parking spaces at your college, the

Accepted Answer

The answer of When there is a shortage of parking...

Quiz 4: Demand and Supply

When a surplus of rice occurs,

If the price of carrots is below the equilibrium price, the

If there is a surplus of tacos, then the

-The graph illustrates the supply of soda. If the price of soda rises from $0.50 a can to $1.50 a can, the quantity of soda supplied

Market equilibrium occurs when

Suppose the equilibrium price of oranges is $2.00 per pound. If the actual price is above the equilibrium price, a

Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a

Market equilibrium occurs when

Market equilibrium i. can never occur because there are always people who want a good but cannot afford it. Ii. occurs at the intersection of the supply and demand curves. Iii. is the point where the price equals the quantity.

As a falling price eliminates a surplus in the jersey market,

-The graph illustrates the supply of sweaters. A fall in the price of sweaters brings

When there is a surplus of snowboards, the

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound. What takes place?

A surplus of cardboard boxes means that

If the price is below the equilibrium price,

When there is a shortage of parking spaces at your college, the