At a product's equilibrium price

Selected
Answer:

any buyer who is willing and able to pay the price will find a
seller for the product.

Question 2
1 out of 1 points

To affect the market outcome, a price floor

Selected Answer:

must be set above the equilibrium price.

Question 3
1 out of 1 points

The minimum wage is an example of

Selected Answer:

a price floor.

Question 4
1 out of 1 points

The area above the market supply curve and below the market price
Selected
Answer:

is equal to the total amount of producer surplus in a

market.

Question 5
0 out of 1 points

Figure 3-2

Refer to Figure 3-2. An increase in the expected future price of the

product would be represented by a movement from
Selected Answer:

S1 to S2.

Question 6
0 out of 1 points

Figure 3-5

Refer to Figure 3-5. At a price of $5,

Selected Answer:

there would be a surplus of 4 units.

Question 7
0 out of 1 points

Figure 3-7

Refer to Figure 3-7. Assume that the graphs in this figure represent
the demand and supply curves for blu-ray discs. Which panel best
describes what happens in this market if there is a substantial
increase in the price of blu-ray players?
Selected Answer:

Panel (d)

Question 8
0 out of 1 points

Brett buys a new cell phone for $100. He receives consumer surplus of
$80 from the purchase. How much does Brett value his cell phone?
Selected Answer:

$20

Question 9
0 out of 1 points

The law of demand implies, holding everything else constant, that as

the price of yogurt
Selected Answer:

decreases, the demand for yogurt will increase.

Question 10
1 out of 1 points

Figure 4-3

Figure 4-3 shows the market for granola. The market is initially in
equilibrium at a price of P1 and a quantity of Q1. Now suppose
producers decide to cut output to Q2 in order to raise the price to P2.
Refer to Figure 4-3. What area represents the deadweight loss at
P2?
Selected Answer:

C+E

Question 11

0 out of 1 points

Figure 4-3

Figure 4-3 shows the market for granola. The market is initially in
equilibrium at a price of P1 and a quantity of Q1. Now suppose
producers decide to cut output to Q2 in order to raise the price to P2.
Refer to Figure 4-3. What area represents consumer surplus at P2?
Selected Answer:

A+B

Question 12
1 out of 1 points

Figure 4-3

Figure 4-3 shows the market for granola. The market is initially in
equilibrium at a price of P1 and a quantity of Q1. Now suppose
producers decide to cut output to Q2 in order to raise the price to P2.
Refer to Figure 4-3. What area represents producer surplus at P2?
Selected Answer:

B+D

Question 13
0 out of 1 points

Which of the following would cause both the equilibrium price and
equilibrium quantity of barley (assume that barley is an inferior good)
to increase?
Selected
Answer:

unusually good weather that results in a bumper

crop of barley

Question 14
0 out of 1 points

If in the market for bananas the supply curve has shifted to the right,
then
Selected Answer:

the quantity of bananas supplied has increased.

Question 15
1 out of 1 points

The difference between the ________ for a good and the ________ is
called consumer surplus.
Selected
Answer:

highest price a consumer is willing to pay; price the

consumer actually pays

Question 16
0 out of 1 points

An ________ is represented by a rightward shift of the demand curve

while an ________ is represented by a movement along a given
demand curve.
Selected Answer:

increase in demand; decrease in demand

Question 17
0 out of 1 points

In recent years the cost of producing wines in the U.S. has increased
largely due to rising rents for vineyards. At the same time, more and
more Americans prefer wine over beer. Which of the following best
explains the effect of these events in the wine market?
Selected
Answer:

Both the supply and demand curves have shifted to the

right. As a result, there has been an increase in the
equilibrium price and an uncertain effect on the
equilibrium quantity.

Question 18
1 out of 1 points

Figure 3-3

Refer to Figure 3-3. The figure above shows the supply and demand
curves for two markets: the market for original Michelangelo
sculptures and the market for Ray Ban sunglasses. Which graph most
likely represents which market?
Selected
Answer:

Graph B represents the market for original Michelangelo

sculptures and Graph A represents the market for Ray
Ban sunglasses.

Question 19
0 out of 1 points

Figure 4-5

Figure 4-5 shows the market for apartments in Bay City. Recently, the
government imposed a rent ceiling at R0.

Refer to Figure 4-5. What is the area that represents consumer

surplus after the imposition of the ceiling?
Selected Answer:

A+B+D+F

Question 20
0 out of 1 points

Figure 4-9

Figure 4-9 shows the market for cigarettes. The government plans to
impose a unit tax in this market.