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Assignment Print View Page 1 of36 award : 1. 10.00 points A factor market is any place or process where C:.' _.r, Finished goods are bought and sold . Land, labor, or capital is bought and sold. { Finished services are bought and sold. <:, None of the choices are correct. A factor market is where the factors of production (land , labor, or capital) are bought and sold . Multiple Choice Difficulty: 1 Easy Learning Objective: 03-03 How market prices and quantities are established. award: 2. 10.00 points ·····susiness firms.sup.ply .goods.and seiVices. to·= . and. purchase 'iactors.ofp.roduction in=:. . . .. r factor markets; product markets n national markets; factor markets -.G C:. product markets; factor markets factor markets; national markets A factor market is where the factors of production (land , labor, or capital) are bought and sold. A product market is where finished goods and services are bought and sold. A pair of shoes is a finished good. Multiple Choice Difficulty: 1 Easy http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03~03 How market prices and quantities are established. 9/17/2013 Assignment Print View 3. Page 2 of36 award: 10.00 points lndividuai 'cons'umers supply ·= ·anifj)li'rchase"~~ .................................................. . _,Q factors of production; final goods and services Ca intermediate goods; final goods and services (" final goods and services; factors of production (:'jj national goods and services; factors of production Individual consumers supply factors of production such as their own labor and purchase final goods and services such as groceries. Multiple Choice Difficulty: 1 Easy Learning Objective: 03-03 How market prices and quantities are established . award: 4. 10.00 points r;.. _,CJ C 0 Increases as its price rises, ceteris paribus. Increases as its price falls, ceteris paribus. Decreases as its price falls, ceteris paribus. Does not change when price changes. Quantity demanded of an item and price of the same item are inversely related. Multiple Choice Difficulty: 1 Easy Learning Objective: 03-01 The nature and determinants of market demand. award: 5. 10.00 points According to the law of demand, a demand curve _.c.; C Has a negative slope. Is a horizontal or flat line. [' Has a positive slope. C Exceeds the economy's ability to produce. Because price and quantity demanded are inversely related, the demand curve is downward-sloping (has a negative slope) . Multiple Choice Difficulty: 1 Easy http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-01 The nature and determinants of market demand. 9117/2013 Assignment Print View Page 3 of36 award: 6. 10.00 points an . in.crease.Tii.. the·q·uiinii't}i.d'eman'ded ofpeifu·m-e? Ceteiis.paribus;··which ..ot.iilli.toliowing.is ..m.osi.iii<eiy to ..eause.. - C A decrease in the price of perfume. Q A decrease in tastes for perfume. CJ An increase in income. CJ An increase in the price of electricity. Quantity demanded and price are inversely related . Tastes and income changes would cause a change in demand (a shift), and the price of electricity would impact the supply of perfume. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-01 The nature and determinants of market demand. award: 7. 10.00 points . .....................VVhiCh···ot the··fOfiOW·i·ng··is··n·OfheiCfCtii-iStanF·aiOfiQ··a··giV·en demand ·cliiVe·tor a good? _r::;, Price. ( ' Consumer's income. CJ The price of substitutes. Consumer tastes. The demand curve reflects the quantity demanded at different price levels, which therefore cannot be held constant. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-01 The nature and determinants of market demand. award: 8. 10.00 points ·····ceieiis./:>ari6us;··wi1·i·ci1.oi.ii1e.toliowin·9-woi:i'icf.9eii.eraiiy..calis·e--an ..increase.rn·ii1·e·-aemand··c:uiVe .ior··r;ew·--···· automobiles? Q A decrease in the price of new automobiles. -+W An increase in consumers' income. 0 The new models being perceived as ugly compared with old models. Q Consumer expectations that the price of new automobiles will be lower next year. A decrease in the price of new automobiles would cause a movement along the demand curve. Perceived ugliness and expectations of lower prices would decrease the demand. An increase in consumers' income would increase the demand for goods. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-01 The nature and determinants of market demand. 9/17/2013 Assignment Print View Page 4 of36 award: 9. 10.00 points · ········ceieris'parlbus;wtiich ofttiefoliowii19''wouid you expect to have 'no.effecfon'ifle..demarid cuiVi:do'r new···············.. ·· automobiles? rei A rise in the price of gasoline. C G _.r Consumer expectations that the price of new automobiles will be lower next year. Consumer expectations that a significant recession will develop and last for a year. An increase in the price of new automobiles. An increase in the price of new automobiles will cause a movement along the demand curve. The entire curve would not change. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-01 The nature and determinants of market demand. award : 10. 10.00 points ···-··················· ·······ceterrs·panEus·;·w·t;-uye·rs··ex·p·ect·the··price··ot··ai·rl·in·e·tic·kets·· to··raii. i.n·th'e·tutu·re:··thfin···riQht··naw·th·ere··sho'i.i·ia·· b'e················ (:_. An increase in the demand for airline tickets. C:: A decrease in the supply of airline tickets. ->L;;~ A decrease in the demand for airline tickets. <: No change in the supply of or demand for airline tickets because the price is not changing right now. Expectations that prices will fall will cause consumers to buy fewer tickets now and wait to purchase airline tickets later, when the price actually falls. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-01 The nature and determinants of market demand. award : 11. 10.00 points ··························· ···Whlch··determl·r;-ant··ot· ciema·r,-a··chan·ge·s·· ~·r;- ·th·e ··p·erso·;;·ai··co·m·puter··rriarket··as ··m·ore·· i·n·dr~i'idU·a·is··be·cc;me··inte·restea ······ in "surfing the Internet"? r- Cost of factors of production. 0 r _.,r;; Income. Expectations. Number of buyers. As individuals become interested in "surfing the Internet," more people will be willing and able to buy personal computers. Multiple Choice Difficulty: 3 Hard http://ezto.mhecloud.mcgraw-hill.com!hm.tpx Learning Objective: 03-01 The nature and determinants of market demand. 9/17/2013 Assignment Print View Page 5 of36 award: 12. 10.00 points Assume that pencils and pens are substitutes. If the price of pencils rises, then we will see -+C. An increase in the demand for pens . .0 A decrease in the demand for pens. r An increase in the supply of pens. ('"., A decrease in the supply of pens. Consumers will substitute the relatively cheaper pens when the price of pencils rises, thereby causing the demand for pens to increase. Multiple Choice Difficulty: 3 Hard Learning Objective: 03-01 The nature and determinants of market demand. award: 13. 10.00 points . . . .H.itiere. are··c;il·iy.two.airi'iries.ttiat fly.'betwe·e·n·oa'iias·a·ii·a·New. brleails;·:wilai·:w·iii. hai'il.en iil. tile ma.ri<ei.tor. oile. . . ... airline if the other one goes out of business? -+r The demand curve will shift to the right. Q; C There will be a movement to the right along the initial demand curve. r There will be a movement to the left along the initial demand curve. The demand curve will shift to the left. If one airline goes out of business, the number of consumers willing and able to buy from the other airline will increase, causing demand to increase. Multiple Choice Difficulty: 3 Hard Learning Objective: 03-01 The nature and determinants of market demand. award: 14. 10.00 points Assume a series of forest fires reduces the supply of lumber, which is an input in the production of wooden bats. Baseballs and wooden bats are complements. If the price of wooden bats increases, we can expect the ---+(" Demand for baseballs to decrease. G Supply of baseballs to decrease. C Demand for baseballs to increase. G Supply of baseballs to increase. Bats and baseballs are complements. When the price of bats increases, the demand for baseballs will decrease. Multiple Choice Difficulty: 3 Hard http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-01 The nature and determinants of market demand. 9117/2013 Assignment Print View Page 6 of36 award: 15. 10.00 points A change in demand means there.ha·s been' a sti'iffin.the. demand .C'urve·,.. and a"ctiang'e in.quantitY ..dema.nded ....... . . La Results from a change in price of other goods. 0 Means a shortage or surplus will result from holding prices constant. Cj Also means demand has shifted. - 0 Means that price has changed and there is movement along the demand curve. Movements along a demand curve are a response to price changes for that good. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-01 The nature and determinants of market demand. award : 16. 10.00 points ··· . . ··............ ·.... 'A. ctiai19e. in.ttie.llrice ·c;ra··9c;o·a·.... · ............ · .............. · ............ · .............. · ............ · .............. · ............ · .............. · ............................ · ............ · .............. · ............ · .. .. ~ _ c;, C. Causes a shift in the supply curve. Results in a change in quantity supplied. Results in a change in supply. Q Is a determinant of supply. Because the supply curve shows the quantity supplied at different price levels, when the price changes, we can track changes in quantity supplied along the supply curve. Multiple Choice Difficulty: 1 Easy Learning Objective: 03-02 The nature and determinants of market supply. award: 17. 10.00 points ···········ceieris.iJa'r iiiiis•.wtii'cil··c;i·tl1e.toHowin·9·is··n:;c;si ii'i<eiy .to ..calise.an ..iil.crease.. iii. iti'e.qua·nfiiY .sli'i>i>i.ieci"of perfume? Q An improvement in perfume-making technology. An increase in the salaries paid to perfume makers. - C. An increase in the price of perfume. An increase in the number of sellers of perfume. If the price of a product is the only variable changing , then we can track changes in quantity supplied along the supply curve. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.com!hm. tpx Learning Objective: 03-02 The nature and determinants of market 9/17/2013 Assignment Print View Page 7 of36 award: 18. 10.00 points ···········c·eteris·paribUS, which ot the··fO.IiOWii19..iS'JTlOSi·i·i·keiy·to··cause··a·aecrease··in··the··su·p·piy··or··s·kateb·oa·ra·s·?········· (d An increase in the price of skateboards. -+U An increase in the cost of materials used to produce skateboards. l ' An improvement in skateboard-making technology. G All of the choices are correct. An increase in costs of production causes supply to decrease. An increase in price causes a decrease in the quantity supplied, whereas an improvement in skateboard-making technology would increase supply. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-02 The nature and determinants of market supply. award : 19. 10.00 points The law of supply implies that C Supply curves are flat. -+Cl C Supply curves are upward-sloping to the right. Supply curves are downward-sloping to the right. A change in a determinant of demand shifts the supply curve. The law of supply says that larger quantities will be offered for sale at higher prices, thereby causing the supply curve to be upward-sloping to the right. Multiple Choice Difficulty: 1 Easy Learning Objective: 03-02 The nature and determinants of market supply. award : 20. 10.00 points · · · · · ceieris./JariEus;··it.the . s'lii>sidies. 9.iilen. to . corn.syrui> . i>roClucers··aecrease·;. iilen··-we·can. exii·ecf·· · · ·. . · C -+C A decrease in the demand for corn syrup. A decrease in the supply of corn syrup. (', An increase in the demand for corn syrup. (j1 An increase in the supply of corn syrup. A reduction in subsidies will reduce the incentive to produce corn syrup, thus decreasing the supply of corn syrup. Multiple Choice Difficu lty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-02 The nature and determinants of market supply. 9/17/2013 Assignment Print View Page 8 of36 award: 21. 10.00 points ······ · ·VJhicil..of ttiEdoiiowii19 ·a\ients ·wolilcfcause.. a ·ri9il!Ward ..shitt "iil"itie mai-kei"sup.i)iY"cuiVEdor ·ali'iomotiiles?..... - G A technological improvement that reduces the cost of production. ('] An increase in the wages of autoworkers. 0 G A higher sales tax on automobiles. A decrease in the number of sellers. Technological improvements that reduce the cost of production will improve profit margins at every price level, which increases supply. An increase in wages and a decrease in the number of sellers will decrease supply, and a higher sales tax will decrease demand. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-02 The nature and determinants of market supply. award: 22. 10.00 points ·················· · · · · ····rt·corn··iina··w·heat··are··aHernativ·e ··pursu·iis··tor··a··ta·rmer~·-·~i'-chan·ge··in··the··su·p·pi;;·ot··corrl"·wiii"·take··p·iacEi.W'hen·~·-ceteris· paribus, G _g The price of corn changes. The price of wheat changes. Q The demand for corn changes. C Consumers want to buy more corn at the same price. A change in the price of wheat will make corn production relatively more or less profitable, thereby causing the supply of corn to change. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-02 The nature and determinants of market supply. award : 23. 10.00 points .......WifC'h"Of the··roiiOWhlQ . ca·n. C'hang·e. Without shlft'i·ng·ei-ther: d9111'8'rld"O'i su·ppi'~i~ . CeteriS"jj'Bfibus? - C G G The price of the good itself. The prices of other goods. Incomes. (' Expectations. A change in the price of a good causes a movement along the demand and the supply curves. It will not cause the demand or supply to shift. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-02 The nature and determinants of market supply. 9/17/2013 Assignment Print View Page 9 of36 award: 24. 10.00 points ..........ceieiis./Jaiiiilis;·wil.id1··c;ntie.toiiowin·9··is ·;n·c;·st iikei:Y .to ..stiifi.hotti.ifle··ae;m·ana ·a·na·tfle ..sup·p·i:y··c:uiVes?··············· ( Technology. ---+("• Expectations. <: The price of the good itself. (". Income. Expectations cause both demand and supply to change. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-02 The nature and determinants of market supply. award: 10.00 25. points .............................................................................................................................................................................................................................................................................................................................................. When a surplus exists for a product, O r Producers increase supply. Consumers increase demand. [" Government purchases decrease. ---+,C; Producers reduce the level of output and reduce price. A surplus occurs when quantity supplied exceeds quantity demanded. Businesses will decrease their prices to get rid of excess inventories and begin to reduce production. Multiple Choice Difficulty: 1 Easy Learning Objective: 03-04 What causes market prices to change. ----------~-----~~~·~---- award: 26. 10.00 points (" There are too many tickets to the event. ---+r,. The price for the tickets is below the equilibrium price. C The tickets must be very expensive. C";;; There is a surplus of tickets. When a price is below equilibrium price, a shortage will occur. Tickets selling almost instantly imply that everyone who is willing and able to go may not be able to obtain tickets. Multiple Choice Difficulty: 3 Hard http://ezto.mhecloud.mcgraw-hill.comlhrn.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Assignment Print View Page 10 of36 award: 27. 10.00 points A riQhtwara·· shHl''in··a··aem·and''C'lJ'iVe ·an·a·a·lenwara·· shHl''iii''a··suppiy··cun;e·i)Oth''resu·lt'i'il''8'' ' ' [ ; Lower equilibrium price. C Lower equilibrium quantity. ~0 Higher equilibrium price. G Higher equilibrium quantity. An increase in demand causes equilibrium price and equilibrium quantity to increase. A decrease in supply causes equilibrium price to increase and equilibrium quantity to decrease. Multiple Choice Difficulty: 1 Easy Learning Objective: 03-04 What causes market prices to change. award: 28. 10.00 points . ... . ·· ···· · · ······· ·ceieri.s··iJa.riEils.".an·T;;·c;:ease . i.n."ffle . iili.m"b.er. Cifseiiers··c;frliiliil"il9 ·s"ho.es·ca-use·s·e·Ci·uriib"rilim.i>ri"ce.to. .. ·· · ···· · · ~C Decrease and equilibrium quantity to increase. <::; Decrease and equilibrium quantity to decrease. r Increase and equilibrium quantity to increase. [l Increase and equilibrium quantity to decrease. An increase in supply causes equilibrium price to fall and equilibrium quantity to increase. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-04 What causes market prices to change. award: 29. 10.00 points . . . .Whe·r;··iti·e-<iemaiid.ior.coifee. iilcre~i's.es: · ceieris.iJarihlis·;·'ti1e. eCiliiii5rilim.i>rice.wTii .aiso.ii1cre.ase.tiecal.lse·· · · ~r A shortage exists at the old equilibrium price. [' There must be a surplus of the good. C The market supply and demand curves do not intersect. C Market demand must be upward-sloping. When demand increases, if the equilibrium price doesn't change, quantity demanded will be greater than quantity supplied, causing a shortage. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-04 What causes market prices to change. 9117/2013 Assignment Print View Page 11 of36 award: 30. 10.00 points ..Assume·mHi<"is.lisea··to .p.rodlice.. ice ..crea'iTi·:· ceie.ris.iJaribus:a··d'ecrease iil. tile·p·i ke"of rriiii<..wiil calise.til'e" equilibrium price of ice cream to C Increase and the equilibrium quantity of ice cream to increase. 0 Increase and the equilibrium quantity of ice cream to decrease. --+G Decrease and the equilibrium quantity of ice cream to increase. Q Decrease and the equilibrium quantity of ice cream to decrease. If the cost of producing ice cream decreases, the supply of ice cream will increase. An increase in supply causes equilibrium price to fall and equilibrium quantity to increase. Multiple Choice Difficulty: 3 Hard Learning Objective: 03-04 What causes market prices to change. award: 31. 10.00 points If a price ceiling is to be binding or effective, it should be set --+U Below the equilibrium price, and it will create a market shortage. u Below the equilibrium price, and it will create a market surplus. Q Above the equilibrium price, and it will create a market shortage. C Above the equilibrium price, and it will create a market surplus. Price ceilings set above the equilibrium price will not be binding or effective because the market price will tend toward the equilibrium price. Therefore, in order for a price ceiling to be binding, it must be set below the equilibrium price. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-05 How government price controls affect market outcomes. 9/17/2013 Assignment Print View Page 13 of36 award: 32. 10.00 points http://ezto.mhecloud.mcgraw-hill.com/hm.tpx 9/17/2013 Page 14 of36 Assignment Print View Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Supply ~curve (leftward) supply curve (rightward) LJJ LJJ 0: 0: u u 0.. 0.. QUANTITY QUANTITY (a) (b) Demand Curve (rightward) Demand Curve (leftward) w w u u a: 0:. Q. Q. QUANTITY QUANTITY (c) (d) Figure 3.1 Shifts of Supply and Demand Designer clothes: consumer confidence in the economy improves. rA Ct B. c c. --+\ D. An improvement in consumer confidence increases demand for goods and services. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Assignment Print View Page 16 of36 award: 33. 10.00 points http://ezto.mhecloud.mcgraw-hill.comlhm.tpx 9/17/2013 Page 17 of36 Assignment Print View Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Suppl,y Curve (rightward) Supp'IY Curve (leftward) UJ UJ u u a:0.. 0::: 0.. QUANTITY QUANTITY (a) (b) Demand Curve Demand Curve (leftward) (rightward) l.U Ll.! u a:: u - lr 0.. 0.. QUANTITY '(d) QUANTI TV (c) Figure 3.1 Shifts of Supply and Demand Steel: the government introduces environmental restrictions on the dumping of wastes from producing steel. . . . .c A. r s. [', C. C::: D. Environmental restrictions on dumping wastes will increase the cost of producing steel, which will cause the supply of steel to decrease. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Assignment Print View Page 19 of36 award : 34. 10.00 points ........................................ http://ezto.mhecloud.mcgraw-hill.comlhm.tpx 9/17/2013 Page 20 of36 Assignment Print View Complete Table 3.1 . Then answer the indicated question. Quantity Demanded by Ben Alejandro Carl 4 2 8 4 12 4 Price $8.00 6.00 4.00 2.00 20 22 4 4 Market 6 6 Quantity Supplied by Avery Brandon Cassandra 60 4 6 42 4 4 4 24 2 6 4 0 Price $8.00 $6.00 $4.00 $2.00 Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if the price is $4, the market will -.C. G, Be in equilibrium. Experience a surplus of 30 units. Q Experience a shortage of 22 units. ( Experience a surplus of 56 units. Quantity demanded (30) is equal to quantity supplied (30) at a price of $4. Refer to Table 3.1 : Answer. Price Quantity Demanded by Alejandro Ben Carl $8.00 6.00 4.00 2.00 Price 8 12 20 22 4 4 2 4 4 6 6 4 Market 14 20 30 32 Quantity Supplied by Avery Brandon Cassandra $8.00 $6.00 $4.00 $2.00 22 30 16 12 18 14 20 6 12 0 0 10 70 50 30 10 Table 3.1: Answer Individual Demand and Supply Schedules Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Assignment Print View Page 22 of36 award : 35. 10.00 points http://ezto.mhecloud.mcgraw-hill.com/hm.tpx 9117/2013 Page 23 of36 Assignment Print View Complete Table 3.1. Then answer the indicated question. Quantity Demanded by Ale jandro Ben Carl $8.00 6.00 8 12 4 4 2 4.00 20 22 4 4 6 6 Price 2.00 Market 4 Quantity Supplied by Price $8.00 $6.00 $4.00 $2.00 Avery Brandon Cassandra 60 42 24 6 4 4 4 4 6 4 2 0 Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if the price is $2 , the market will G Be in equilibrium. ("' Experience a surplus of 30 units. ~r C: Experience a shortage of 22 units. Experience a surplus of 56 units. Quantity demanded (32) is greater than quantity supplied (1 0) by 22 (32 - 10) when the price is $2 . Refer to Table 3.1: Answer. Quantity Demanded by Market Alejand ro 8 Ben 4 Carl 2 4.00 12 20 4 4 4 6 14 20 30 2.00 22 4 6 32 Price $8.00 6.00 Quantity Supplied by Price $8.00 $6.00 Avery 30 Brandon 18 Cassandra 22 70 16 12 14 6 20 12 50 30 0 0 10 10 $4.00 $2.00 Table 3.1 : Answer Individual Demand and Supply Schedules Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-04 What causes market prices to change . 9117/2013 Assignment Print View Page 25 of36 award : 36. 10.00 points http://ezto.rnhecloud.mcgraw-hill.com/hm.tpx 9/17/2013 Page 26 of36 Assignment Print View Complete Table 3.1. Then answer the indicated question. Quantity Demanded by Alejandro Ben Carl 8 4 2 12 4 4 6 20 4 4 6 22 Price $8.00 6.00 4.00 2.00 Market Quantity Supplied by Avery Brandon Cassandra 60 4 6 4 4 42 24 4 2 4 6 0 Price $8.00 $6.00 $4.00 $2.00 Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if the price is $8, the market will Q Be in equilibrium. <:: Experience a surplus of 30 units. C'] ...... ( Experience a shortage of 22 units . Experience a surplus of 56 units. Quantity demanded (14) is less than quantity supplied (70) by 56 (70- 14) when the price is $8. Refer to Table 3.1: Answer. Price $8.00 6.00 4.00 2.00 Price $8.00 $6.00 $4.00 $2.00 Quantity Demanded by Alejandro Ben Carl 8 4 2 12 4 4 4 20 6 4 6 22 Ma~ket 14 20 30 32 Quantity Supplied by Avery Brandon Cassandra 30 16 12 0 18 14 6 0 22 20 1!2 10 70 50 30 10 Table 3.1 : Answer Individual Demand and Supply Schedules Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-04 VVhat causes market prices to change. 9/17/2013 Assignment Print View Page 28 of36 award : 37. 10.00 points http://ezto .mhecloud.mcgraw-hill.comlhm. tpx 9117/2013 Page 29 of36 Assignment Print View Complete Table 3.1. Then answer the indicated question. Quantity Demanded by Alejandro Ben Carl Price $8.00 6.00 4.00 2.00 8 12 4 4 2 4 20 4 4 6 6 22 Market Quantity Supplied by Price $8.00 $6.00 $4.00 $2.00 Avery Brandon Cassandra 60 42 4 6 4 4 24 4 2 6 4 0 Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if government held the price at $3, C: The government would be setting an effective price floor. c;; The shortage would be the same as the quantity demanded . ........ [" There would be a shortage. C The market would be in equilibrium. A price below equilibrium will create a shortage. Refer to Table 3.1: Answer. Quantity Demanded by Price Alejandro Ben Carl Market 8 12 20 22 4 2 4 14 20 6 6 30 $8.00 6.00 4.00 2.00 4 4 4 32 Quantity Supplied by Price $8.00 $6.00 $4.00 $2.00 Avery 30 16 12 0 Brandon 18 Cassandra 22 14 6 20 0 110 1i2 70 50 30 10 Table 3.1: Answer Individual Demand and Supply Schedules Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-05 How government price controls affect market outcomes. 9/17/2013 Page 30 of36 Assignment Print View award: 38. 10.00 points ----······------,-·-·······-······ $15 1- -z I 1 I I I UJ 0.. ' I I I I I . I I I I I I : J ' I I I I -------.--------~ I : t I I I I I I I I I • -------~------- 1 I I 0 I f --------,-------I I I I I I I I t I I I I f I I I I $3 I --------~ : l I a: 0 I I I -------~--------·------' I $6 I I I I I I I c./') :3 __, I I I I $12 $9 I I I t t _______ ,_______ I ::J a: I I -------~I I I I I I --------·--------,--------·-------I . 20 30 1 I I ' I 0 10 J I • I I I ' I 1 40 so QUANTITY Figure 3.2 Supply and Demand ---.Q There would be a surplus of 40 units. C There would be a surplus of 20 units. '[] There would be a shortage of 40 units. There would be a shortage of 20 units. At a price of $15, the quantity supplied is 50 while the quantity demanded is 10. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm. tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Page 31 of36 Assignment Print View award : 39. 10.00 points · · ···· · ··· · · · · · · · ·Whi.Ch . pane·i··ar··Fig·urti ·3-:3··re·prese·n"ts··the··chang·e·s··~n·Ihe··market··tor·'beef'·wh·en··the··price··ot·oo·rn···tcatti·e ··te·ed)··rise·s··· and the people become more fearful of mad cow disease? !:: z :::> a:: UJ a.. w u a:: -a.. QUANTITY (b) QUANTITY (a) z- -f-z 1- ::> a:: w Q.. w ::> a:: w Q.. w u -a:: u ....... a:: a.. a.. QUANTITY QUANTfTY (c) (d) Figure 3.3 Shifts of Supply and Demand C A. ,C B. c -c c. D. An increase in costs causes supply to decrease, and the fear of disease will cause the demand to decrease. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Page 32 of36 Assignment Print View award: 40. 10.00 points ....WhiCii···panefof Figure·i3.re.prese.nts. the. changes in the market for.dga.rettes· when .tile .govern.menfincreases ·· subsidies for the production of tobacco and at the same time bans smoking in public buildings? !::: :z ::;) a::: w c.. ' w - u a::: c.. , ., ' ' ' ., ' '/ · Jit., ·o· , ' l QUANTITY QUANTITY (a) (b) s t:: z ::> a: LU ,, ',, ,.~l· ' ,~ '' 0... w z- 1- :> a:: w a.. ' LLJ u a:: u a:: a.. a.. QUANTITY (c) ' ' ,, ,< , ', ,, '' QUANTITY (d) Figure 3.3 Shifts of Supply and Demand A. B. C. D. A subsidy will encourage more production, causing supply to increase, and the ban on smoking will cause a decrease in demand. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Page 33 of36 Assignment Print View award : 41. 10.00 points ···VVilich'l>anei"Cii.i=i9ure.i3.re.i>reseiiis"tile·c:ilan9es.in.ihe··r:nari<ei.tor.stli'deni.tiou.sin9.wileil . unhiersiiY.enro.iime.ilf·· increases and at the same time the university destroys several older residence halls and apartment buildings? 1-- z ::> a::: UJ c.. UJ u a::: c.. - QUANTITY QUANTITY (a) s ' -z 1- :J a:: w 0.. w u a:: (b) • l .,, 'A."· ~ ' , ' .,. ' , '' . z- 1- :::> a:: w 0.. w ............ u ,..... 0.. 0.. a: ,, ' ,< ' ," , '' ' ' QUANTITY QUANTITY (c) (d) Figure 3.3 Shifts of Supply and Demand A. B. --.t'J c. D. The increase in enrollment increases the number of buyers, causing demand to increase. The destruction of residence halls and apartment buildings causes supply to decrease. Multiple Choice Difficulty: 2 Medium http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Page 34 of36 Assignment Print View award: 42. 10.00 points $15 1- -z $12 :J a= IJ,J a.. $9 V') a: ::s _, $6 0 0 $3 10 0 20 30 40 50 QUANTIITV Figure 3.2 Supply and Demand There would be a surplus of 40 units. There would be a surplus of 20 units. There would be a shortage of 40 units. There would be a shortage of 20 units. At a price of $6, quantity demanded will be 40 and quantity supplied will be 20, which will result in a shortage of 20 (40- 20). Multiple .Choice Difficulty: 2 Medium http://ezto .mhecloud.mcgraw-hill.comlhm. tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Page 35 of36 Assignment Print View award: 43. 10.00 points ............Wilicti.. ot iile..toiiCiiN'ii19 .siateme.ii'is a·b'out .mari<ets..is iioi'true? --.Q C rJ Markets necessarily have a physical location. Markets have both a demand side and a supply side. The two types of markets include the factor and product markets . .{] Every market transaction involves an exchange of money for goods or resources or a direct exchange of goods or resources without money called barter. Markets exist wherever and whenever an exchange takes place, even in cyberspace. Multiple Choice Difficulty: 2 Medium Learning Objective: 03-03 How market prices and quantities are established . awa rd : 44. 10.00 points ······························ ............................................................................................................ If the wages of corn farmers decrease, then the --.C Supply curve for corn will shift right. (J Supply curve for corn will shift left. G. Demand curve for corn will shift left. None of the choices are correct. If the cost of production decreases, the supply of the good will increase. Multiple Choice Difficulty: 3 Hard Learning Objective: 03-04 What causes market prices to change. award: 45. 10.00 points If the price of "X" increases and you buy more "Y," then G CJi --.C: d "X" and "Y" are complements, and the price of "Y" will increase. "X" and "Y" are complements, and the price of "Y" will decrease. "X" and "Y" are substitutes, and the price of "Y" will increase. "X" and "Y" are substitutes, and the price of "Y" will decrease. Substitutes are competitive goods. They will have similar prices if not the same price in the same location. Multiple Choice Difficulty: 3 Hard http://ezto.mhecloud.mcgraw-hill.comlhm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013 Page 36 of36 Assignment Print View award : 46. 10.00 points If the price of "X" increases and you buy less "Y," then C "X" and "Y" are complements, and the price of "Y" will increase. ~r:. "X" and "Y" are complements, and the price of "Y" will decrease. f'i "X" and "Y" are substitutes, and the price of "Y" will increase. (" "X" and "Y" are substitutes, and the price of "Y" will decrease. When the price of "X" goes up (such as cars) and you buy less "Y" (such as gasoline), that means these goods are complements. Multiple Choice Difficulty: 3 Hard Learning Objective: 03-04 What causes market prices to change. award: 47. 10.00 points ······················· ·······An·· ,·rl'crease··i·n·ih·e· price··ot·ga·soiine··wHi····················································· . ······· . ·····································.................................................................................................. l'; Shift the gasoline supply curve to the right. C Shift the gasoline demand curve to the right. .(;. Shift the automobile supply curve to the left. ~C;;; Shift the automobile demand curve to the left. A change in the price of gasoline will only move along the fixed gasoline supply and demand lines. However, since gasoline and automobiles are complements, an increase in the price of gasoline will shift the demand curve for cars to the left. Multiple Choice Difficulty: 3 Hard http://ezto.mhecloud.mcgraw-hill.com/hm.tpx Learning Objective: 03-04 What causes market prices to change. 9/17/2013