ECO/365T PRINCIPLES OF MICROECONOMICS The Latest Version A+ Study Guide **********************************************
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ECO 365T Wk 2 Apply Quiz (2021 New) 1. Charlie is willing to pay $16 for a T-shirt that is priced at $12. If Charlie buys the T-shirt, then his consumer surplus is
2. Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade is, respectively, $2.50, $2.25, $2.00, and $1.75. If the actual price of lemonade is $1.25 per glass, then consumer surplus in this market will be
3. In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Consumer expectations that the price of X will fall soon will
4. Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $190. Amanda experiences
5. In the market for a particular pair of shoes, Geri is willing to pay $75 for a pair, while Jane is willing to pay $85 for a pair. The actual price that each has to pay for a pair of these shoes is $65. What is the total amount of the two women’s combined consumer surplus?
6.
Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be
7. Jennifer buys a piece of costume jewelry for $30, for which she was willing to pay $35. The minimum acceptable price to the seller, Nathan, was $15. Jennifer experiences a
8.
Refer to the above table. Equilibrium will occur when the price is
9. Refer to the above diagram for the milk market. If the price were $2.00 per gallon, then there would be
10. Answer the question based on the given supply and demand data for wheat.
Equilibrium price in this market is
11. The minimum acceptable price for a product that producer Sam is willing to receive is 10. The price he could get for the product in the market is 15. How much is Sam’s producer surplus?
12.
Refer to the provided table. What is the total producer surplus in the market for all producers A, B, C, D, and E?
13. Which of the following statements is ? If supply decreases and demand decreases, equilibrium price is indeterminate.
If supply decreases and demand decreases, equilibrium price will rise. If supply decreases and demand decreases, equilibrium price will fall. If supply decreases and demand decreases, equilibrium quantity will rise. If supply decreases and demand remains constant, equilibrium price is indeterminate.
14. Suppose product X is an input in the production of product Y. Product Y in turn is a substitute for product Z. A decrease in the price of X can be expected to decrease the demand for Z. increase the demand for Z. have no effect on the demand of product Z. decrease the supply of Z. increase the supply of Z.
15.
Refer to the provided table. The surplus for Producer B is
16. In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Removing the subsidy placed on product X years ago will
Refer to the above diagram of the market for corn. If the price in this market is $2 per bushel, then there will be Multiple Choice •
a shortage of 8 thousand bushels.
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a shortage of 4 thousand bushels.
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a surplus of 12 thousand bushels.
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a surplus of 8 thousand bushels.
The minimum acceptable price for a product that producer Sam is willing to receive is 5. The price he could get for the product in the market is 9. How much is Sam’s producer surplus? Multiple Choice •
5
•
14
•
4
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more than $9
•
45
Jennifer buys a piece of costume jewelry for $30, for which she was willing to pay $35. The minimum acceptable price to the seller, Nathan, was $15. Jennifer experiences a Multiple Choice
• consumer surplus of $5, and Nathan experiences a consumer surplus of $5. • producer surplus of $65, and Nathan experiences a producer surplus of $50. • consumer surplus of $5, and Nathan experiences a producer surplus of $15.
• consumer surplus of $15, and Nathan experiences a producer surplus of $20. • producer surplus of $5, and Nathan experiences a consumer surplus of $15.
Producer Minimum Acceptable Price Actual Price (Equilibrium Price) A $ 6 $ 19 B 7 19 C 9 19 D 11 19 E 13 19
Refer to the provided table. What is the total producer surplus in the market for all producers A, B, C, D, and E? Multiple Choice •
$19
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$32
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$6
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$44
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$49
Suppose product Y is an input in the production of product Z. Product Z in turn is a substitute for product X. An increase in the price of Y can be expected to Multiple Choice •
increase the demand for X.
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decrease the demand for X.
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have no effect on the demand for product X.
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decrease the supply of X.
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increase the supply of X.
Price Per Unit Per Year $ 5 2,000 0 10 1,800 300
Quantity Demanded Per Year Quantity Supplied
15 1,600 600 20 1,400 900 25 1,200 1,200 30 1,000 1,500
Refer to the above table. A shortage of 1,500 units will occur when the price is Multiple Choice •
$10.
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$20.
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$15.
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$5.
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$25.
(1) Qd (2) Qd (3) Price (4) Qs (5) Qs 50 40 $ 10
70 80
60 50 9
60 70
80 60 8
50 60
90 70 7 100
40 50
80 6
30 40
Refer to the table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be Multiple Choice •
$9 and 60 units.
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$10 and 60 units.
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$8 and 80 units.
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$8 and 60 units.
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$9 and 70 units.
Charlie is willing to pay $16 for a T-shirt that is priced at $12. If Charlie buys the T-shirt, then his consumer surplus is Multiple Choice •
$28.
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$192.
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more than $12.
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$4.
•
Refer to the above diagram for the milk market. There would be equilibrium whenever the price is Multiple Choice •
$1.50 per gallon.
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less than $1.50 per gallon.
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more than $2.00 per gallon.
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less than $1.00 per gallon.
Which of the following statements is ? Multiple Choice •
If supply decreases and demand decreases, equilibrium quantity will fall.
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If supply decreases and demand decreases, equilibrium quantity will rise.In
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If demand decreases and supply increases, equilibrium price will rise.
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If supply decreases and demand remains constant, equilibrium price will fall.
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If supply increases and demand remains constant, equilibrium price will rise.
Answer the question based on the given supply and demand data for wheat.
Bushels Demanded Per Month Price Per Bushel Bushels Supplied Per Month 45 $ 5 45 50 4 42 56 3 39 61 2 36 67 1 33
Equilibrium price in this market is Multiple Choice •
$5.
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$4.
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$3.
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$2.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.
Removing the excise tax on product X will Multiple Choice
•
increase S, decrease P, and increase Q.
•
decrease S, decrease P, and increase Q.
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decrease S, increase P, and increase Q.
•
increase D, increase P, and decrease Q.
Producer Minimum Acceptable Price Actual Price (Equilibrium Price) A $ 6 $ 13 B 7 13 C 9 13 D 11 13 E 13 13
Refer to the provided table. The surplus for Producer E is Multiple Choice •
$26.
•
$13.
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$0.
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$4.
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$7.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.
A decrease in the price of a product that is a complement to X will Multiple Choice •
increase D, increase P, and increase Q.
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increase D, decrease P, and increase Q.
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increase D, increase P, and decrease Q.
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decrease S, decrease P, and increase Q.
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shift D left with no change in P and Q.
Amanda buys a ruby for $240 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $190. Amanda experiences Multiple Choice •
a consumer surplus of $100, and Tony experiences a producer surplus of $50.
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a producer surplus of $100, and Tony experiences a consumer surplus of $190.
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a consumer surplus of $580, and Tony experiences a producer surplus of $200.
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a consumer surplus of $100, and Tony experiences a consumer surplus of $150.
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a producer surplus of $200, and Tony experiences a consumer surplus of $100.
Refer to the above diagram for the milk market. If the price were more than $1.50 per gallon, then there would be Multiple Choice •
equilibrium in the market.In
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a shortage in the market.
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a surplus in the market.
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no buyers in the market.