BNAD 301 - HW 2
Which of the following can be true in a competitive market (mark all that apply)? - ANS-Different
buyers pay different prices
-Buyers are unsure about sellers prices
-Some sellers are large relative to the market
-Different sellers are selling different products
-Some buyers are large relative to the market
Based on the discussion in class, which feature of the retail market for regular (i.e., 87 octane)
gasoline causes the most important violation of the assumptions of a competitive market? -
ANSThe cost of traveling to a distant gasoline station is significant.
Many economists believe that ______ sometimes provide an exception to the Law of Supply. -
ANSlabor markets
Many economists believe that ______ sometimes provide an exception to the Law of Demand. -
ANSstatus goods
Suppose that the market supply curve can be described by the equation QS=(p/4)-3 and market
demand can be described by the equation QD=42-p, where p is the market price. Then, in
equilibrium (i.e., at the intersection of the curves), the market price is
________
and the quantity traded is _________ - ANSmarket price=36, quantity traded=6
If the market price is $6, then the quantity supplied is closest to: - ANS20
If the market price is $6, then the quantity demanded is closest to: - ANS100
If the market price is $14, then the excess _____ (choose "Supply" or "Demand") equals ______
- ANSSupply, 80
If the market price is $11, then the quantity traded is closest to: - ANS50
Which of the following market prices causes the largest quantity to be traded? - ANS10
At approximately what market price would there be an excess demand of 60? - ANS7
For this question only, assume that the diagram represents the labor market, and P represents
the hourly wage. Suppose that the government forces the market wage to be $11 (for example,
through a minimum wage law). If the unemployment rate is defined to be the excess supply
divided by the quantity supplied, then the unemployment rate lies in what range? - ANS25-30%
Which of the following can be true in a competitive market (mark all that apply)? - ANS-Different
buyers pay different prices
-Buyers are unsure about sellers prices
-Some sellers are large relative to the market
-Different sellers are selling different products
-Some buyers are large relative to the market
Based on the discussion in class, which feature of the retail market for regular (i.e., 87 octane)
gasoline causes the most important violation of the assumptions of a competitive market? -
ANSThe cost of traveling to a distant gasoline station is significant.
Many economists believe that ______ sometimes provide an exception to the Law of Supply. -
ANSlabor markets
Many economists believe that ______ sometimes provide an exception to the Law of Demand. -
ANSstatus goods
Suppose that the market supply curve can be described by the equation QS=(p/4)-3 and market
demand can be described by the equation QD=42-p, where p is the market price. Then, in
equilibrium (i.e., at the intersection of the curves), the market price is
________
and the quantity traded is _________ - ANSmarket price=36, quantity traded=6
If the market price is $6, then the quantity supplied is closest to: - ANS20
If the market price is $6, then the quantity demanded is closest to: - ANS100
If the market price is $14, then the excess _____ (choose "Supply" or "Demand") equals ______
- ANSSupply, 80
If the market price is $11, then the quantity traded is closest to: - ANS50
Which of the following market prices causes the largest quantity to be traded? - ANS10
At approximately what market price would there be an excess demand of 60? - ANS7
For this question only, assume that the diagram represents the labor market, and P represents
the hourly wage. Suppose that the government forces the market wage to be $11 (for example,
through a minimum wage law). If the unemployment rate is defined to be the excess supply
divided by the quantity supplied, then the unemployment rate lies in what range? - ANS25-30%
