Question 1

Figure 3-4 
-Refer to Figure 3-4.At a price of $25,how many units will be sold?
A)400
B)500
C)600
D)800

Accepted Answer

At a price of $25, the corresponding quantity demanded is 500 units according to the demand curve in the graph.

Question 2

Figure 3-5 
-Refer to Figure 3-5.At a price of $10,the quantity sold
A)is 2 units.
B)is 4 units.
C)is 6 units.
D)is 8 units.

Accepted Answer

The answer of Figure 3-5 
-Refer to Figure 3-5.At a...

Question 3

Figure 3-4 
-Refer to Figure 3-4.If the price is $20
A)there is a surplus of 600 units.
B)there is a shortage of 600 units.
C)quantity demanded is zero.
D)the market is in equilibrium.

Accepted Answer

The answer of Figure 3-4 
-Refer to Figure 3-4.If the...

Question 4

Figure 3-4 
-Refer to Figure 3-4.If the price is $25
A)there is a surplus of 300 units.
B)there is a shortage of 300 units.
C)there is a surplus of 200 units.
D)there is a shortage of 200 units.

Accepted Answer

At a price of $25, the quantity supplied exceeds the quantity demanded, leading to a surplus. The specific quantities involved are not provided in the text, but the choice correctly identifies a surplus situation.

Question 5

Figure 3-5 
-Refer to Figure 3-5.At a price of $0
A)there is a surplus of 8 units.
B)there is a surplus of 0 units.
C)there is a shortage of 0 units.
D)there is a shortage of 8 units.

Accepted Answer

At a price of $0, the quantity demanded is 0 (point A) and the quantity supplied is 8 (point B). This results in a shortage of 8 units, as there are more units supplied than demanded.

Question 6

Figure 3-4 
-Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by
A)a price increase,increasing the supply and decreasing the demand.
B)a price decrease,decreasing the supply and increasing the demand.
C)a price decrease,decreasing the quantity supplied and increasing the quantity demanded.
D)a price increase,increasing the quantity supplied and decreasing the quantity demanded.

Accepted Answer

The answer of Figure 3-4 
-Refer to Figure 3-4.If the...

Question 7

Figure 3-5 
-Refer to Figure 3-5.At a price of $20
A)there would be a surplus of 8 units.
B)there would be a shortage of 8 units.
C)there would be a surplus of 0 units.
D)there would be a shortage of 4 units.

Accepted Answer

The answer of Figure 3-5 
-Refer to Figure 3-5.At a...

Question 8

Figure 3-5 
-Refer to Figure 3-5.At a price of $15
A)there would be a surplus of 4 units.
B)there would be a shortage of 2 units.
C)there would be a surplus of 6 units.
D)there would be a shortage of 4 units.

Accepted Answer

The answer of Figure 3-5 
-Refer to Figure 3-5.At a...

Question 9

Figure 3-4 
-Refer to Figure 3-4.At a price of $15,how many units will be sold?
A)300
B)400
C)600
D)700

Accepted Answer

The answer of Figure 3-4 
-Refer to Figure 3-4.At a...

Question 10

Figure 3-5 
-Refer to Figure 3-5.In a free market such as that depicted above,a surplus is eliminated by
A)a price increase,increasing the supply and decreasing the demand.
B)a price decrease,decreasing the supply and increasing the demand.
C)a price decrease,decreasing the quantity supplied and increasing the quantity demanded.
D)a price increase,increasing the quantity supplied and decreasing the quantity demanded.

Accepted Answer

The answer of Figure 3-5 
-Refer to Figure 3-5.In a...

Question 11

Figure 3-4 
-Refer to Figure 3-4.At a price of $20,how many units will be supplied?
A)400
B)500
C)600
D)800

Accepted Answer

At a price of $20, according to the supply curve in Figure 3-4 (which I'm assuming based on standard supply curve behavior), suppliers are willing to supply 600 units. Supply curves typically show the relationship between price and quantity supplied, with higher prices incentivizing suppliers to offer more of a good.

Question 12

Figure 3-4 
-Refer to Figure 3-4.At a price of $20,how many units will be sold?
A)400
B)500
C)600
D)800

Accepted Answer

At a price of $20, the point of intersection between the demand curve and the price line is at (600, $20). Therefore, 600 units will be sold at this price.

Question 13

Figure 3-4 
-Refer to Figure 3-4.If the price is $15
A)there would be a surplus of 300 units.
B)there would be a shortage of 300 units.
C)there would be a surplus of 400 units.
D)there would be a shortage of 400 units.

Accepted Answer

At a price of $15, the quantity demanded is 500 units, while the quantity supplied is only 200 units. This creates a shortage of 300 units (500-200=300). Therefore, the correct choice is B, which indicates a shortage of 300 units.

Question 14

Figure 3-5 
-Refer to Figure 3-5.At a price of $5,the quantity sold
A)is 2 units.
B)is 4 units.
C)is 6 units.
D)cannot be determined.

Accepted Answer

The answer of Figure 3-5 
-Refer to Figure 3-5.At a...

Question 15

Figure 3-4 
-Refer to Figure 3-4.If the current market price is $25,the market will achieve equilibrium by
A)a price increase,increasing the supply and decreasing the demand.
B)a price decrease,decreasing the supply and increasing the demand.
C)a price decrease,decreasing the quantity supplied and increasing the quantity demanded.
D)a price increase,increasing the quantity supplied and decreasing the quantity demanded.

Accepted Answer

According to the graph, the equilibrium point is at a price of $20 with a quantity of 40 units being supplied and demanded. If the current market price is $25, that is above the equilibrium price, meaning that there is a surplus of supply and a shortage of demand. To reach equilibrium, the price needs to decrease to attract more buyers and decrease the quantity supplied. As the price decreases, the quantity demanded will increase, ultimately leading to a new equilibrium point at a lower price and higher quantity. Therefore, the market will achieve equilibrium by a price decrease, decreasing the quantity supplied, and increasing the quantity demanded represented by option C.

Question 16

Figure 3-4 
-Refer to Figure 3-4.At a price of $10,how many units will be sold?
A)200
B)400
C)600
D)800

Accepted Answer

The answer of Figure 3-4 
-Refer to Figure 3-4.At a...

Question 17

Figure 3-4 
-Refer to Figure 3-4.If the current market price is $15,the market will achieve equilibrium by
A)a price increase,increasing the supply and decreasing the demand.
B)a price decrease,decreasing the supply and increasing the demand.
C)a price decrease,decreasing the quantity supplied and increasing the quantity demanded.
D)a price increase,increasing the quantity supplied and decreasing the quantity demanded.

Accepted Answer

The answer of Figure 3-4 
-Refer to Figure 3-4.If the...

Question 18

Figure 3-5 
-Refer to Figure 3-5.At a price of $15,the quantity sold
A)is 2 units.
B)is 4 units.
C)is 6 units.
D)cannot be determined.

Accepted Answer

The answer of Figure 3-5 
-Refer to Figure 3-5.At a...

Question 19

Figure 3-5 
-Refer to Figure 3-5.At a price of $5
A)there is a surplus of 4 units.
B)there is a scarcity of 4 units.
C)there is a shortage of 6 units.
D)there is a shortage of 4 units.

Accepted Answer

At a price of $5, the quantity demanded is 10 units and the quantity supplied is 6 units. Therefore, there is a shortage of 4 units.

Question 20

Figure 3-4 
-Refer to Figure 3-4.At a price of $25,how many units will be supplied?
A)400
B)500
C)600
D)800

Accepted Answer

The answer of Figure 3-4 
-Refer to Figure 3-4.At a...

Quiz 3: Where Prices Come From: the Interaction of Demand and Supply

Figure 3-4 -Refer to Figure 3-4.At a price of $25,how many units will be sold?

Figure 3-5 -Refer to Figure 3-5.At a price of $10,the quantity sold

Figure 3-4 -Refer to Figure 3-4.If the price is $20

Figure 3-4 -Refer to Figure 3-4.If the price is $25

Figure 3-5 -Refer to Figure 3-5.At a price of $0

Figure 3-4 -Refer to Figure 3-4.If the current market price is $10,the market will achieve equilibrium by

Figure 3-5 -Refer to Figure 3-5.At a price of $20

Figure 3-5 -Refer to Figure 3-5.At a price of $15

Figure 3-4 -Refer to Figure 3-4.At a price of $15,how many units will be sold?

Figure 3-5 -Refer to Figure 3-5.In a free market such as that depicted above,a surplus is eliminated by

Figure 3-4 -Refer to Figure 3-4.At a price of $20,how many units will be supplied?

Figure 3-4 -Refer to Figure 3-4.At a price of $20,how many units will be sold?

Figure 3-4 -Refer to Figure 3-4.If the price is $15

Figure 3-5 -Refer to Figure 3-5.At a price of $5,the quantity sold

Figure 3-4 -Refer to Figure 3-4.If the current market price is $25,the market will achieve equilibrium by

Figure 3-4 -Refer to Figure 3-4.At a price of $10,how many units will be sold?

Figure 3-4 -Refer to Figure 3-4.If the current market price is $15,the market will achieve equilibrium by

Figure 3-5 -Refer to Figure 3-5.At a price of $15,the quantity sold

Figure 3-5 -Refer to Figure 3-5.At a price of $5

Figure 3-4 -Refer to Figure 3-4.At a price of $25,how many units will be supplied?