Question 1

Which of the following statements is correct about the determinants of supply and demand?

Accepted Answer

The answer of Which of the following statements is correct...

Question 2

Which of the following combinations of changes in supply and demand (listed in the same order) is likely to cause an indeterminate change in price?

Accepted Answer

When both supply and demand increase, the effect on price is indeterminate without knowing the relative magnitudes of the changes. If supply increases more than demand, prices could decrease, and if demand increases more than supply, prices could increase.

Question 3

The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.Refer to the above information.After the change in demand, the new equilibrium price is:

Accepted Answer

The answer of The demand for commodity X is represented...

Question 4

Identify the correct statement(s) about markets.

Accepted Answer

Markets can exist at various levels, from local to national to international. Therefore, all the given options are correct.

Question 5

Compared to the normal taxi waiting lines, Uber has:

Accepted Answer

Uber uses a ride-sharing model where passengers can request a ride using their app and they will be matched with the nearest available driver. This means there is no physical waiting line and passengers do not have to wait for a long time to get a ride. In contrast, traditional taxis operate based on a first-come, first-served model, which means passengers have to wait in line for their turn to get a taxi. Therefore, Uber typically has shorter waiting times and lines compared to traditional taxi services.

Question 6

Which of the following strategies is being used by Uber to attain equilibrium?

Accepted Answer

Dynamic pricing is a strategy where Uber adjusts its prices based on real-time supply and demand, helping them to attain equilibrium in the market. When demand is high, prices go up, and when there is less demand, prices go down. This ensures that there are always enough drivers available for the customers and also helps Uber to optimize their profits.

Question 7

Which of the following is likely to result in black markets?

Accepted Answer

Price ceilings set a price limit below the equilibrium price, which creates a shortage of the good being demanded, leading to black market activity.

Question 8

Which of the following combinations of changes in supply and demand (listed in the same order) is likely to cause an indeterminate change in quantity?

Accepted Answer

The answer of Which of the following combinations of changes...

Question 9

The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.Refer to the above information.After the change in demand, the new equilibrium quantity is:

Accepted Answer

The answer of The demand for commodity X is represented...

Question 10

Immigration to Canada from many parts of the world has increased the demand for a whole range of ethnic goods and services, particularly in:

Accepted Answer

Southern Ontario and British Columbia have a higher proportion of immigrants than other provinces in Canada, with a significant number coming from Asia and the Middle East. This has led to an increased demand for ethnic goods and services such as restaurants, grocery stores, and cultural festivals. Alberta and Quebec also have a significant number of immigrants, but Southern Ontario and British Columbia are the main areas where there is a high demand for ethnic goods and services. Newfoundland, Nova Scotia, New Brunswick have lower immigration rates compared to other provinces in Canada.

Question 11

Uber's pricing model creates what type of waiting lines?

Accepted Answer

Uber's pricing model, which includes surge pricing, is designed to balance supply and demand, thereby reducing waiting times and leading to shorter lines.

Quiz 3: Part B: Demand, Supply, and Market Equilibrium

Which of the following statements is correct about the determinants of supply and demand?

Which of the following combinations of changes in supply and demand (listed in the same order) is likely to cause an indeterminate change in price?

The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.Refer to the above information.After the change in demand, the new equilibrium price is:

Identify the correct statement(s) about markets.

Compared to the normal taxi waiting lines, Uber has:

Which of the following strategies is being used by Uber to attain equilibrium?

Which of the following is likely to result in black markets?

Which of the following combinations of changes in supply and demand (listed in the same order) is likely to cause an indeterminate change in quantity?

The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.Refer to the above information.After the change in demand, the new equilibrium quantity is:

Immigration to Canada from many parts of the world has increased the demand for a whole range of ethnic goods and services, particularly in:

Uber's pricing model creates what type of waiting lines?