Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
185. An effective price ceiling will lower the equilibrium price and cause a surplus.
186. If the government sets a price floor below what would be the competitive market price of
a product, a shortage of the product will develop.
187. A headline reads “Storms destroy half of the lettuce crop.” This situation would lead to
a(n):
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
188. What will happen to the equilibrium quantity and price of sushi in a competitive market
when there is an equal decrease in demand and supply?
189. A television station reports that the price of orange juice has declined but the quantity
traded has increased. This situation could be caused by a(n):
190. If there’s a huge increase in the number of Americans travelling to Europe (say, for the
Olympics), then the effect on the foreign exchange market is that the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
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191. In the dollar-yen foreign exchange market, if Japanese companies sharply increase their
importation of U.S. products, then the:
Assume that the graphs show a competitive market for the product stated in the question.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
192. Select the graph above that best shows the change in the market specified in the
following situation: In the market for gasoline, when the price of oil, which is used to produce
gasoline, increases because of reduced production by major oil-producing nations.
193. Select the graph above that best shows the change in the market specified in the
following situation: In the market for Florida oranges, when a major frost damages the orange
crop in California.
194. Select the graph above that best shows the change in the market specified in the
following situation: In the market for wheat, when the cost of fertilizer decreases.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
195. What would best explain why the equilibrium price of pink salmon decreased and the
equilibrium quantity increased?
196. If the price of oil increases significantly, buyers and sellers of gasoline will both expect
the price of gasoline to also increase. If sellers of gasoline act on their expectations more than
the buyers do, then:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
197. Refer to the above graph. Given this market, if the government pre-sets the price at $20,
then this action results in a:
198. Refer to the above graph. Given this market, if the government pre-sets the price at $60,
then this action results in a:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
199. Refer to the above graph. What price will eliminate a surplus or shortage in this market?
200. When tickets are “scalped,” then in this market transaction:
201. The scalping of tickets for an event is a sign that at the stated price on the ticket, the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
202. The scalping of tickets for an event is a sign that the stated price on the ticket is:
203. From an economic perspective, when a person purchases a ticket to a popular sports
event from a ticket scalper, it results in a:
204. In the market for sushi, an equal increase in supply and demand will increase the
equilibrium quantity, but have no effect on the equilibrium price.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
205. In the market for sushi, an increase in the price of fish along with an increase in the
preference for sushi among consumers will cause the equilibrium quantity to increase, but the
effect on the equilibrium price is indeterminate.
206. In the market for gasoline, if the change in demand due to the start of the summer driving
season is greater than the change in supply due to disruptions in the refinery operations in the
Gulf, then the equilibrium quantity will increase.
207. In the market for gasoline, if the change in demand due to the start of the summer driving
season is greater than the change in supply due to disruptions in the refinery operations in the
Gulf, then the equilibrium quantity will increase.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
208. In the foreign exchange market, if Canadian companies import more products from the
U.S., then the demand for Canadian dollars will increase.
209. In the foreign exchange market, if Americans significantly increase their investments in
securities in British financial markets, one effect is that the dollar will tend to depreciate
against the pound.
210. If the organizers of a major sports event set the ticket price above the equilibrium level,
then scalping will develop in a secondary market for tickets.
211. The presence of ticket scalpers in popular events like concerts will hurt consumers who
buy from the scalpers.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
212. If the government pre-sets a price that turns out to be above the actual equilibrium price,
a surplus will develop in the market.