ecohw1 (50-100)

ecohw1 (50-100) - 50. Holding all else constant, if butter...

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50. Holding all else constant, if butter and margarine are substitute goods, as the price of butter rises: a. the demand for margarine will fall b. the demand for margarine will rise c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good 51. The law of supply states that the quantity supplied of a good and: a. the price of a key input are inversely related b. its price are inversely related c. the price of a key input are positively related d. its price are positively related e. the price of an alternate good are positively related 52. An increase in quantity supplied can be caused by a(n): a. increase in quantity demanded b. rise in resource input prices c. increase in price d. decrease in the number of firms in the market e. tax levied on the producer 53. When a market is in equilibrium: a. quantity demanded equals quantity supplied b. quantity demanded exceeds quantity supplied c. the demand curve is identical to the supply curve d. the economy must be at a point along the production possibilities frontier e. the law of demand is equivalent to the law of supply
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Use the following table showing demand and supply schedules for socks for questions 54 through 56. Price Quantity Quantity per Pair Demanded Supplied $2 18 3 4 14 4 6 10 5 8 6 6 10 2 8 54. The equilibrium price of socks is: a. $2 b. $4 c. $6 d. $8 e. $10 55. A price of $4 results in: a. equilibrium b. a surplus (excess supply) of 10 units c. a shortage (excess demand) of 14 units d. a shortage (excess demand) of 10 units e. a shortage (excess demand) of 18 units 56. A price of $10 results in: a. equilibrium b. a shortage (excess demand) of 6 units c. a surplus (excess supply) of 14 units d. s surplus (excess supply) of 6 units e. a shortage (excess demand) of 14 units Use the following graph for questions 57 and 58. 57. If the current market price is $16, firms would produce ____ units and consumers would buy ____ units. a. 10,000; 10,000 b. 10,000; 21,000 c. 15,000; 15,000 d. 21,000; 10,000 e. 21,000; 21,000 P 20 15,000 S D 16 10,000 21,000 Q
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58. A $16 price would result in: a. an excess supply (surplus) of 6,000 units b. an excess supply (surplus) of 11,000 units c. an excess demand (shortage) of 5,000 units
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ecohw1 (50-100) - 50. Holding all else constant, if butter...

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