Question 1

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, the equilibrium market price is
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$

Accepted Answer

The equilibrium market price is the price at which the quantity demanded equals the quantity supplied. In this case, the quantity demanded is 14 units at a price of $6.00, and the quantity supplied is also 14 units at a price of $6.00. Therefore, the equilibrium market price is $6.00.

Question 2

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. Figure 3.1 Shifts of Supply and Demand Candy bars: People become more health-conscious and prefer power bars instead of candy bars.

Accepted Answer

The answer of Choose the letter of the diagram in...

Question 3

In a market economy, which of the following is an incentive for producers to produce efficiently?

Accepted Answer

In a market economy, producers are motivated by the desire to maximize profits. Producing efficiently and minimizing costs helps to increase profits by allowing producers to sell their goods at a lower price while still maintaining a healthy profit margin. Government laws and regulations, the production possibilities curve, and the public's welfare may also play a role in influencing producer behavior, but they are not as direct of incentives for producers to produce efficiently as the desire for profits.

Question 4

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. Figure 3.1 Shifts of Supply and Demand Flat-screen TVs: the technology required for flat-screen TVs production becomes cheaper.

Accepted Answer

This situation represents a shift in supply, as the technology becoming cheaper will likely encourage more producers to enter the market and increase the quantity supplied at each price level. This shift would cause the supply curve to shift to the right, as depicted in diagram B.

Question 5

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if government held the price at $3,
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$

Accepted Answer

At a price of $3, which is not explicitly shown in the table but can be inferred to be between the prices of $2.00 and $4.00, the quantity demanded would be higher than the quantity supplied. This is because, as price decreases, the quantity demanded typically increases, while the quantity supplied decreases. Since the government is holding the price at $3, it is preventing the market from reaching equilibrium, where quantity demanded equals quantity supplied, thus creating a shortage.

Question 6

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. Figure 3.1 Shifts of Supply and Demand Steel: the government introduces environmental restrictions on the dumping of wastes from producing steel.

Accepted Answer

The answer of choose the letter of the diagram in...

Question 7

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, the equilibrium market quantity is
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$

Accepted Answer

To find the equilibrium market quantity, we need to find the price where the quantity demanded equals the quantity supplied. First, we complete the table by summing the individual quantities demanded and supplied at each price level.For the demand side at each price:- At $8.00: 8 + 4 + 2 = 14- At $6.00: 12 + 4 + 4 = 20- At $4.00: 20 + 4 + 6 = 30- At $2.00: 22 + 4 + 6 = 32For the supply side at each price:- At $8.00: 60 + 4 + 6 = 70- At $6.00: 42 + 4 + 4 = 50- At $4.00: 24 + 4 + 2 = 30- At $2.00: 6 + 4 + 0 = 10The equilibrium market quantity is where the quantity demanded equals the quantity supplied, which is 30 units at a price of $4.00.

Question 8

If the government places a price ceiling on cancer-treating drugs, then

Accepted Answer

Placing a price ceiling on cancer-treating drugs would limit the amount that drug companies could charge, which would likely result in a decrease in the supply of these drugs. It may also lead to a decrease in the research and development of new cancer treatments. While this may make the drugs more affordable for some consumers, it could also limit access to treatment for others, resulting in fewer cancer-treating drugs being available overall.

Question 9

The price ceiling that the federal government placed on human organs caused

Accepted Answer

The price ceiling on human organs would have caused the price of organs to be lower than the market equilibrium price. This would have resulted in an increase in demand for organs, but a decrease in supply, leading to a shortage. Therefore, the best choice is C.

Question 10

Suppose a hurricane hits Florida, causing widespread damage to houses and businesses.The governor of Florida places price ceilings on all building materials to keep the prices reasonable.Which of the following is the most likely result?

Accepted Answer

When price ceilings are placed on building materials, it reduces the incentives for suppliers to provide more of those materials, resulting in a decreased supply. Additionally, it creates a situation where demand for the materials exceeds supply, leading to shortages. This means that fewer people will be able to purchase the materials needed to repair their homes and businesses, slowing down the recovery from the storm.

Question 11

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if the price is $8, the market will
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$

Accepted Answer

The answer of Complete Table 3.1.Then answer the indicated question....

Question 12

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. Figure 3.1 Shifts of Supply and Demand Designer clothes: consumer confidence in the economy improves.

Accepted Answer

The answer of Choose the letter of the diagram in...

Question 13

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if the price is $2, the market will
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$

Accepted Answer

At a price of $2, the total quantity demanded is 32 units (22+4+6), and the total quantity supplied is 10 units (6+4+0), resulting in a shortage of 22 units (32-10).

Question 14

In a market economy, the people who receive the goods and services produced are those who

Accepted Answer

In a market economy, goods and services are distributed based on their market price. Those who are willing and able to pay the market price will receive the goods and services, regardless of need or want. The market price is determined by supply and demand, which reflects the preferences and choices of consumers. Therefore, choice D is the best answer.

Question 15

The equilibrium price and quantity in Figure 3.2 are, respectively,Figure 3.2 Supply and Demand

Accepted Answer

The answer of The equilibrium price and quantity in Figure...

Question 16

If a price ceiling is to be effective, it should be set

Accepted Answer

A price ceiling is a legal maximum price set by the government, which is below the equilibrium price. This creates a shortage in the market as the quantity demanded exceeds the quantity supplied at the ceiling price. The shortage will generally lead to rationing and discrimination among potential buyers. This is why the effective price ceiling must be set below the equilibrium price to have any effect.

Question 17

Complete Table 3.1.Then answer the indicated question. Table 3.1 Individual Demand and Supply Schedules In Table 3.1, if the price is $4, the market will
Quantity Demanded by
$\begin{array}{rccc}
\text { Price } & \text { Alejandro } & \text { Ben } & \text { Carl } & \text { Market} \
\hline \$8.00& 8 & 4 & 2 &\_\_\_\
6.00 & 12 & 4 & 4 &\_\_\_\
4.00 & 20 & 4 & 6 &\_\_\_\
2.00 & 22 & 4 & 6&\_\_\_\
\end{array}$ Quantity Supplied by 
$\begin{array}{lccc}
\text { Price } & \text { Avery } & \text { Brandon } & \text { Cassandra } \
\hline \$ 8.00 & 60 & 4 & 6 &\_\_\_\
\$ 6.00 & 42 & 4 & 4&\_\_\_ \
\$ 4.00 & 24 & 4 & 2 &\_\_\_\
\$ 2.00 & 6 & 4 & 0&\_\_\_\
\end{array}$

Accepted Answer

The answer of Complete Table 3.1.Then answer the indicated question....

Question 18

When economists talk about "optimal outcomes" in the marketplace, they mean that

Accepted Answer

The term "optimal outcomes" implies that the allocation of resources by the market is the best possible given income and resource constraints. It does not necessarily mean that all consumer desires are satisfied or that everyone who wants a good or service can have it. The market may not always be perfect, but optimal outcomes can still be achieved within its limitations.

Question 19

Price ceilings are intended to address the problem of

Accepted Answer

Price ceilings are implemented to make essential goods and services more affordable to lower-income consumers, addressing inequity in the distribution of goods and services by preventing prices from rising too high.

Question 20

The federal government placed an upper limit on human organ prices, which is called a

Accepted Answer

The upper limit on human organ prices is a government-imposed maximum price, which is a type of price ceiling.

Quiz 3: Supply and Demand