Chapter 4 hw1

Principles of Macroeconomics: A Study Guide

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4: The Price System and Demand and Supply Multiple Choice
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1. According to the concept of price rationing, the price system serves as a rationing device particularly when: Quantity supplied exceeds quantity demanded. Quantity demanded exceeds quantity supplied. Market equilibrium exists. Price is above equilibrium price. 2. Refer to the graph below. At what price level is price rationing necessary? At $3.25. At $2.50.
Background image of page 2
At $1.75 3. Refer to the graphs below. Which of these graphs depicts this statement: "When supply is lower, the price system ensures that supply is rationed to those who are willing and able to pay the higher price." A B C D None of the above. 4. Refer to the graph below. At what price level is quantity demanded too low for equilibrium?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
At P 0 At P 1 At P 2 There is no price level in this graph for which the quantity demanded is too low for equilibrium. 5. Refer to the graph below. When is the price level in this market under pressure to fall?
Background image of page 4
At P 0 At P 1 At P 2 There is no price level in this graph where quantity demanded is too low for equilibrium. 6.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This homework help was uploaded on 02/01/2008 for the course EBGN 312 taught by Professor Sosa during the Fall '02 term at Mines.

Page1 / 13

Chapter 4 hw1 - Chapter 4: The Price System and Demand and...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online