ECP3704 Exam #1 Review Questions with Complete Solutions 100% Verified|
Latest Update Graded A+
Let Qd = 10 - 2P and Qs = 3P be the demand and supply curves for used econ books. The
equilibrium combination (P* and Q*) in the market is ______.
-P* = 2; Q* = 5
-P* = 5; Q* = 0
-P* = 2; Q* = 6
-P* = 6; Q* = 2 P* = 2; Q* = 6
To say that the U.S. possesses a comparative advantage over Japan in the production of certain
types of music implies that (for a similar quality of music) the:
-opportunity cost of production is less in Japan.
-absolute cost of production is less in the U.S.
-absolute cost of production is less in Japan.
-opportunity cost of production is less in the U.S. opportunity cost of production is less in
the U.S.
Assume the market for hammers is perfectly competitive and the current price is $15. If, at this
price, the quantity of hammers demanded is 15,000, while the quantity supplied is 25,000, then
-the market for hammers is in equilibrium.
-the price of hammers is likely to increase.
-the price of hammers is likely to decrease.
-there would be no change in price. the price of hammers is likely to decrease.
Use the following graph to answer Questions 17-20. Assume the demand curve intercepts the
y-axis at $4.00.
, *Supply & Demand graph with Equilibrium at 50 units $2.50*
Compute the number of units purchased and the price at which those units will be exchanged
when there is a $3 per unit price floor.
-35 units and $2.50 per unit
-35 units and $3.00 per unit
-50 units and $2.50 per unit
-50 units and $3.00 per unit
-30 unit and $2.50 per unit
-30 unit and $3.00 per unit 35 units and $3.00 per unit
A $3 per unit price floor will result in a
-Shortage of 30 unit
-Surplus of 30 units
-Shortage of 35 units
-Surplus of 35 units
-Shortage of 65 units
-Surplus of 65 units Surplus of 30 units
Compute the surplus consumers received when an $3 per unit price floor is imposed on the
market.
$17.50
$35.00
$37.50
$75.00 $17.50
Compute the dead weight loss when an $3 per unit price floor is imposed on the market.
Latest Update Graded A+
Let Qd = 10 - 2P and Qs = 3P be the demand and supply curves for used econ books. The
equilibrium combination (P* and Q*) in the market is ______.
-P* = 2; Q* = 5
-P* = 5; Q* = 0
-P* = 2; Q* = 6
-P* = 6; Q* = 2 P* = 2; Q* = 6
To say that the U.S. possesses a comparative advantage over Japan in the production of certain
types of music implies that (for a similar quality of music) the:
-opportunity cost of production is less in Japan.
-absolute cost of production is less in the U.S.
-absolute cost of production is less in Japan.
-opportunity cost of production is less in the U.S. opportunity cost of production is less in
the U.S.
Assume the market for hammers is perfectly competitive and the current price is $15. If, at this
price, the quantity of hammers demanded is 15,000, while the quantity supplied is 25,000, then
-the market for hammers is in equilibrium.
-the price of hammers is likely to increase.
-the price of hammers is likely to decrease.
-there would be no change in price. the price of hammers is likely to decrease.
Use the following graph to answer Questions 17-20. Assume the demand curve intercepts the
y-axis at $4.00.
, *Supply & Demand graph with Equilibrium at 50 units $2.50*
Compute the number of units purchased and the price at which those units will be exchanged
when there is a $3 per unit price floor.
-35 units and $2.50 per unit
-35 units and $3.00 per unit
-50 units and $2.50 per unit
-50 units and $3.00 per unit
-30 unit and $2.50 per unit
-30 unit and $3.00 per unit 35 units and $3.00 per unit
A $3 per unit price floor will result in a
-Shortage of 30 unit
-Surplus of 30 units
-Shortage of 35 units
-Surplus of 35 units
-Shortage of 65 units
-Surplus of 65 units Surplus of 30 units
Compute the surplus consumers received when an $3 per unit price floor is imposed on the
market.
$17.50
$35.00
$37.50
$75.00 $17.50
Compute the dead weight loss when an $3 per unit price floor is imposed on the market.
