One point on a market supply curve represents $4 and 100 units quantity supplied. If there

One point on a market supply curve represents $4 and 100 units quantity supplied. If there are three suppliers, and at a price of $4 one of the suppliers supplies 23 units, then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

a.At $4, quantity supplied could be 40 units for one supplier and 27 for the other.

b.At $4, quantity supplied could be 33 units for one supplier and 27 for the other.

c.At $4, quantity supplied could be 40 units for one supplier and 37 for the other.

d.At $4, quantity supplied could be 77 units for one supplier and 10 for the other.

e.There is not enough information to answer this question.

 

 

 

134.The price of X was $10 in year 1 and $14 in year 2. Which of the following could be the correct reason for the rise in price?

a.The demand for X was higher in year 2 than in year 1, ceteris paribus.

b.The supply of X was lower in year 2 than in year 1, ceteris paribus.

c.The demand was higher, and the supply was lower, in year 2 than in year 1.

d.a and b

e.a, b, and c

 

 

 

135.Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?

a.If the price of labor falls, the supply of goods rises, and the prices of those goods fall.

b.If the price of labor falls, the quantity supplied of goods rises, and the prices of those goods fall.

c.If the price of labor falls, the demand for goods falls, and the prices of those goods fall.

d.If the price of labor falls, the demand for goods rises, and the prices of those goods fall.

e.If the price of labor falls, the supply of goods falls, and the prices of those goods fall.

 

 

 

136.One reads in the newspaper: "Today the president and Congress enacted a law which adds new requirements that child care providers must meet before they can offer their services for sale." As a result, an economist would predict that

a.the supply of child care services will increase, thus lowering the price of child care services.

b.the supply of child care services will be unaffected by the stiffer requirements and therefore the price of child care services will not change.

c.the demand for child care services will fall because people who buy child care services do not want stiffer requirements placed on child care providers.

d.the supply of child care services will decrease, thus raising the price of child care services.

e.none of the above

 

 

 

137.If the demand for a good increases by more than the supply of the good increases, then the good’s equilibrium price will __________ and its equilibrium quantity will __________.

a.rise; fall

b.rise; rise

c.fall; fall

d.fall; rise

 

 

 

138.If the demand for a good falls by less than the supply of the good rises, then the good’s equilibrium price will __________ and its equilibrium quantity will __________.

a.rise; fall

b.rise; rise

c.fall; fall

d.fall; rise

 

 

 

139.If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price will __________ and its equilibrium quantity will __________.

a.rise; fall

b.rise; rise

c.fall; fall

d.fall; rise

 

 

 

140.A change in price will lead to a change in __________ and to a change in __________, while a change in preferences will lead to a change in __________ and a change in the prices of relevant resources will lead to a change in __________.

a.quantity supplied; demand; income; supply

b.demand; quantity supplied; supply; quantity demanded

c.quantity supplied; supply; quantity supplied; demand

d.quantity supplied; quantity demanded; demand; supply

e.quantity supplied; quantity demanded; supply; demand

 

 

 

141.The equilibrium price in market A is $24. The current price in market A is $21. At this price, a(n) ________________________ exists in market A.

a.surplus

b.shortage

c.excess supply

d.excess demand

e.b and d

 

 

 

142.Which of the following statements is false?

a.At equilibrium in a market, scarcity does not exist.

b.If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit.

c.If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2.

d.If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price.