| D. | The costs are spread out among millions of people Assume the demand for sushi is Qd = 180 - 3P, where Qd is quantity demanded and P = price in dollars. The supply of sushi is Qs = 80 + 5P, where Qs is quantity supplied (and P is, again, price in dollars). What would be the equilibrium price? | A. | $15.50 | | B. | $12.50 | | C. | $10 | | D. | $15 | Price floors and ceiling prices: | A. | cause the supply and demand curves to shift until equilibrium is established. | | B. | both cause surpluses. | | C. | interfere with the rationing function of prices. | | D. A change in the price of a good leads to a change in ________, which leads to a ___________ | A. | quantity supplied; shift of the supply curve | | B. | supply; shift of the supply curve | | C. | quantity supplied; movement along the supply curve | | D. When the supply of a product increases, this implies that | A. | the price of the product first declined | | B. | more will be purchased at the same price | | C. | producers will be willing to accept a lower price for each unit sold | | D. | demand for the good must have increased | | E. | producers will offer less for sale at each possible price If there is a excess demand for product X: | A. | fewer resources will be allocated to the production of this good. | | B. | the price of the product will rise. | | C. | the supply curve will shift to the left and the demand curve to the right, eliminating the shortage. | | D. | the price of the product will decline. Which of the following will occur when there is a simultaneous decrease in demand and a decrease in supply? | A. | B and D both necessarily occur | | B. | An increase in equilibrium quantity | | C. | A and C both necessarily occur | | D. | An increase in price | | E. | A and D both necessarily occur | | F. | A decrease in price | | G. | A decrease in equilibrium quantity Velcro is becoming more and more popular for a variety of uses, including as fasteners for shoes. What should happen to the equilibrium price and quantity for shoelaces as a result? | A. | Both price and quantity should decrease. | | B. | Price should increase and quantity decrease. | | C. | Both price and quantity should increase. | | D. | Price should decrease and quantity increase. | | E. | Nothing. If the government imposes a ceiling price on apartment rents, we would expect to observe all of the following except one. Which is the exception? | A. | conversion of some apartment complexes to condos | | B. | a shortage | | C. | an increase in the number of new apartment complexes being built | | D. | lower maintenance of existing apartments | | E. | long waiting lists for apartment seekers | | | | | | supply; movement along the supply curve | | both cause shortages. | |