3 Homework - 1 ,. . curves.#1,

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1. Refer to the above graph, which shows the market for bicycles. S1 and D1 are the original  supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply  curves. Starting from the initial equilibrium point (#1), what point on the graph is most likely to  result from the introduction of technological improvements in bicycle assembly, and publicity  campaigns by the government on the virtues of bicycling to work? A) 3 B) 4 C) 5 D) 6 2.
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Refer to the above diagram illustrating the market for corn. The equilibrium price and quantity  in this market are: A) $4 and 10,000 bushels B) $3 and 8,000 bushels C) $2 and 4,000 bushels D) $2 and 11,000 bushels 3.
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Refer to the above diagram illustrating the market for corn. If the price in this market were to  be fixed at $4 per bushel, the part of the line marked A would represent a: A) Surplus of 8,000 bushels B) Shortage of 8,000 bushels C) Surplus of 7,000 bushels D) Shortage of 7,000 bushels 4.
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Refer to the above table. In a free-market economy, the market price and quantity will adjust 
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This note was uploaded on 04/22/2010 for the course ECO 112 taught by Professor Smith during the Spring '10 term at Bowling Green.

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3 Homework - 1 ,. . curves.#1,

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