Question 1

Figure 3-23 
-Refer to Figure 3-23. It is apparent from the figure that

Accepted Answer

The law of demand states that as the price of a good decreases, the quantity demanded increases, which is typically shown in a demand curve. Without seeing Figure 3-23, this is the most likely correct choice.

Question 2

Figure 3-22    
-Refer to Figure 3-22. Suppose the events depicted in graphs A and C were illustrated together on a single graph. A definitive result of the two events would be

Accepted Answer

When events from graphs A and C are combined, they likely show an increase in both supply and demand, leading to an increase in the equilibrium quantity.

Question 3

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Accepted Answer

As the fall semester begins, the demand for pizza delivery in a college town is likely to increase due to the return of students. Graph A, which shows an increase in demand, represents this scenario.

Question 4

Figure 3-23 
-Refer to Figure 3-23. The movement from point A to point B on the graph would be caused by

Accepted Answer

The answer of Figure 3-23 
-Refer to Figure 3-23. The...

Question 5

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs illustrates a decrease in quantity demanded?

Accepted Answer

The answer of Figure 3-22    
-Refer to...

Question 6

Figure 3-20 
-Refer to Figure 3-20. At the equilibrium price, producer surplus is

Accepted Answer

Producer surplus is the area above the supply curve and below the equilibrium price. Without the figure, we assume the given options are calculated based on the correct equilibrium price and quantity, and $640 is the correct calculation for producer surplus.

Question 7

Figure 3-20 
-Refer to Figure 3-20. If 110 units of the good are being bought and sold, then

Accepted Answer

The answer of Figure 3-20 
-Refer to Figure 3-20. If...

Question 8

Suppose a person defects from Cuba (a country that generally disregards the use of markets) to the United States and asks to see a market in action. Where would you take her? Did you give her a complete showing of this market?

Accepted Answer

The answer of Suppose a person defects from Cuba (a...

Question 9

Figure 3-22    
-Refer to Figure 3-22. Graph A shows which of the following?

Accepted Answer

Graph A shows a rightward shift in the demand curve, indicating an increase in demand, and a movement along the supply curve, indicating an increase in quantity supplied due to the higher price resulting from increased demand.

Question 10

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs illustrates an increase in quantity supplied?

Accepted Answer

Graph A illustrates an increase in quantity supplied as it shows a movement along the supply curve to the right, indicating that more quantity is supplied at a higher price.

Question 11

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs represents the market for winter coats as we progress from winter to spring?

Accepted Answer

The answer of Figure 3-22    
-Refer to...

Question 12

Figure 3-20 
-Refer to Figure 3-20. If the price decreases from $22 to $16, consumer surplus increases by

Accepted Answer

The answer of Figure 3-20 
-Refer to Figure 3-20. If...

Question 13

Figure 3-21 -Refer to Figure 3-21. At the quantity Q₃,

Accepted Answer

At quantity Q3, the value to buyers is less than the cost to sellers, indicating that the market is not in equilibrium and the total surplus is not maximized.

Question 14

Figure 3-20 
-Refer to Figure 3-20. If 40 units of the good are being bought and sold, then

Accepted Answer

When 40 units are bought and sold, the value to buyers is typically greater than the cost to sellers, as this is the condition under which transactions occur in a market, leading to a positive consumer surplus.

Question 15

Figure 3-21 -Refer to Figure 3-21. At the quantity Q₂,

Accepted Answer

At quantity Q2, the price buyers are willing to pay is P2, while the cost to sellers is P3, indicating a discrepancy between buyer value and seller cost.

Question 16

Figure 3-23 
-Refer to Figure 3-23. The movement from point A to point B on the graph shows

Accepted Answer

The movement from point A to point B on the graph indicates a movement along the demand curve, which represents an increase in quantity demanded due to a change in price.

Question 17

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Accepted Answer

The answer of Figure 3-22    
-Refer to...

Question 18

Figure 3-22    
-Refer to Figure 3-22. Graph C shows which of the following?

Accepted Answer

The answer of Figure 3-22    
-Refer to...

Question 19

Figure 3-22    
-Refer to Figure 3-22. Which of the four graphs represents the market for cars as a result of the adoption of new technology on assembly lines?

Accepted Answer

The answer of Figure 3-22    
-Refer to...

Question 20

Two students are walking by a department store window that has on display a $400 dress. The English major declares, "I want that dress but can't afford it." The economics major replies, "No, you don't." Explain the logic of this reply.

Accepted Answer

The answer of Two students are walking by a department...

Quiz 3: Demand, Supply, and the Market Process

Figure 3-23 -Refer to Figure 3-23. It is apparent from the figure that

Figure 3-22 -Refer to Figure 3-22. Suppose the events depicted in graphs A and C were illustrated together on a single graph. A definitive result of the two events would be

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Figure 3-23 -Refer to Figure 3-23. The movement from point A to point B on the graph would be caused by

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs illustrates a decrease in quantity demanded?

Figure 3-20 -Refer to Figure 3-20. At the equilibrium price, producer surplus is

Figure 3-20 -Refer to Figure 3-20. If 110 units of the good are being bought and sold, then

Suppose a person defects from Cuba (a country that generally disregards the use of markets) to the United States and asks to see a market in action. Where would you take her? Did you give her a complete showing of this market?

Figure 3-22 -Refer to Figure 3-22. Graph A shows which of the following?

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs illustrates an increase in quantity supplied?

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs represents the market for winter coats as we progress from winter to spring?

Figure 3-20 -Refer to Figure 3-20. If the price decreases from $22 to $16, consumer surplus increases by

Figure 3-21 -Refer to Figure 3-21. At the quantity Q3,

Figure 3-20 -Refer to Figure 3-20. If 40 units of the good are being bought and sold, then

Figure 3-21 -Refer to Figure 3-21. At the quantity Q2,

Figure 3-23 -Refer to Figure 3-23. The movement from point A to point B on the graph shows

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs represents the market for peanut butter after a major hurricane hits the peanut-growing south?

Figure 3-22 -Refer to Figure 3-22. Graph C shows which of the following?

Figure 3-22 -Refer to Figure 3-22. Which of the four graphs represents the market for cars as a result of the adoption of new technology on assembly lines?

Two students are walking by a department store window that has on display a $400 dress. The English major declares, "I want that dress but can't afford it." The economics major replies, "No, you don't." Explain the logic of this reply.

Figure 3-21 -Refer to Figure 3-21. At the quantity Q₃,

Figure 3-21 -Refer to Figure 3-21. At the quantity Q₂,