Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
194. A price ceiling means that:
195. If an effective ceiling price is placed on hamburgers then:
196. If a legal ceiling price is set above the equilibrium price:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
197. An effective price floor on wheat will:
198. Which of the following is a consequence of rent controls established to keep housing
affordable for the poor?
199. Which of the following statements is true about price ceilings?
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
200. (Consider This) Ticket scalping refers to:
201. (Consider This) Ticket scalping:
202. (Consider This) Ticket scalping implies that:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
203. (Consider This) Ticket scalping is likely to:
204. (Consider This) Suppose that salsa manufacturers sell 2 million bottles at $3.50 in one
year, and 3 million bottles at $3 in the next year. Based on this information we can conclude
that the:
205. (Consider This) Suppose that coffee growers sell 200 million pounds of coffee beans at
$2 per pound in 2007, and sell 240 million pounds for $3 per pound in 2008. Based on this
information we can conclude that the:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
206. (Last Word) A market for human organs (rather than the current volunteer-donor system)
would be expected to:
207. (Last Word) A market-based system of buying and selling human organs for transplant
would:
208. (Last Word) A major objection to creating a legal market for human organs is that such a
market would:
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
209. Surpluses drive market prices up; shortages drive them down.
210. If demand increases and supply simultaneously decreases, equilibrium price will rise.
211. The rationing function of prices refers to the fact that government must distribute any
surplus goods that may be left in a competitive market.
212. An increase in quantity supplied might be caused by an increase in production costs.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
213. An increase in demand accompanied by an increase in supply will increase the
equilibrium quantity but the effect on equilibrium price will be indeterminate.
214. A government subsidy per unit of output increases supply.
215. Consumers buy more of normal goods as their incomes rise.
216. Toothpaste and toothbrushes are substitute goods.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
217. Producing a good in the least costly way is known as allocative efficiency.
218. A market that achieves productive efficiency is producing the quantity of goods most
desired by society.
219. A market that is achieving allocative efficiency must also be achieving productive
efficiency.
220. A government tax per unit of output reduces supply.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
221. If market demand increases and market supply decreases, the change in equilibrium price
is unpredictable without first knowing the exact magnitudes of the demand and supply
changes.
222. A decrease in supply of X increases the equilibrium price of X, which reduces the
demand for X and automatically returns the price of X to its initial level.
223. In a competitive market, every consumer willing to pay the market price can buy a
product and every producer willing to sell the product at that price can sell it.
224. A price floor in a competitive market will result in persistent shortages of a product.
Chapter 03 – Demand, Supply, and Market Equilibrium (+ Appendix)
225. A ceiling price in a competitive market will result in persistent surpluses of a product.