6. The demand for a tennis racket is given by P = 300 - 2QD. The supply is P = 60 + QS. What are the equilibrium price and output?
A. $80, 140
B. $140, 80
C. $300, 240
D. $250, 100
E. $300, 160
7. Assume that at the current market price is $4 per cup of coffee, you are willing and able to buy 30 cups. Last month at a price of $4 per cup, you would have purchased 20 cups. What has most likely happened over the last month?
A. Supply has decreased
B. Quantity supplied has increased
C. Demand has decreased
D. Supply has increased
E. Demand has increased
8. In the figure below, which graph represents what would happen if there was an increase in the price of the metal used in the production of a bike?
A. A
B. B
C. C
D. D
E. Both [C] and [E] would happen
9. If the price elasticity of supply = 2.5 and price decreases by 3 percent, then
A. supply will decrease by 75 percent
B. total output will increase
C. quantity supplied will increase by 83 percent
D. quantity supplied will increase by 1.2.
E. quantity supplied will decrease by 7.5 percent
10. When the price increases from $4 to $6 and the quantity demanded decreases by 2 units, the price elasticity of demand is
A. -25
B. -1.5
C. -1
D. -2.5
E. Cannot be determined from the information given
6. The demand for a tennis racket is given by P = 300 - 2QD. The supply is P = 60 + QS. What are the equilibrium price and output?
A. $80, 140
B. $140, 80
C. $300, 240
D. $250, 100
E. $300, 160
7. Assume that at the current market price is $4 per cup of coffee, you are willing and able to buy 30 cups. Last month at a price of $4 per cup, you would have purchased 20 cups. What has most likely happened over the last month?
A. Supply has decreased
B. Quantity supplied has increased
C. Demand has decreased
D. Supply has increased
E. Demand has increased
8. In the figure below, which graph represents what would happen if there was an increase in the price of the metal used in the production of a bike?
A. A
B. B
C. C
D. D
E. Both [C] and [E] would happen
9. If the price elasticity of supply = 2.5 and price decreases by 3 percent, then
A. supply will decrease by 75 percent
B. total output will increase
C. quantity supplied will increase by 83 percent
D. quantity supplied will increase by 1.2.
E. quantity supplied will decrease by 7.5 percent
10. When the price increases from $4 to $6 and the quantity demanded decreases by 2 units, the price elasticity of demand is
A. -25
B. -1.5
C. -1
D. -2.5
E. Cannot be determined from the information given
Related textbook solutions
Related questions
Who bears the primary costs of a rent control program?
| A. | landlords | |||||||||||||
| B. | renters that get rent-controlled apartments | |||||||||||||
| C. | taxpayers | |||||||||||||
| D. | the wealthy 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). A price of $20 would result in:
|
US agricultural price supports are politically popular because
| A. | They have no adverse impacts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. | The US would have food shortages without them | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| C. | The benefits accrue to a large number of voters and the costs are paid by a small number of voters | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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?
Price floors and ceiling prices:
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