ECON 2301-Exam 2
Which of the following would most likely increase the price of chicken, a normal good?
A) a reduction in the price of grains used to produce chicken feed
B) a reduction in the price of beef, a substitute for chicken
C) unusually hot weather that kills millions of chickens before they are ready for market
D) a decrease in consumer income
Which of the following is the correct way to describe equilibrium in a market?
A) At equilibrium, demand equals supply.
B) At equilibrium, quantity demanded equals quantity supplied.
C) At equilibrium, market forces no longer apply.
D) Equilibrium is a tendency for price to change, a state of perpetual motion.
E) At equilibrium, the "fairest" price for output is achieved.
A price ____ set ____ the equilibrium price will lead to a shortage.
A) ceiling; above
B) ceiling; below
C) floor; above
D) floor; below
4. Table 5-1
PRICE per large pepperoni pizza
QUANTITY DEMANDED of large
QUANTITY SUPPLIED of large
. At a price of $4, there is a ____ of ____ pizzas.
A) shortage; 4,500
B) surplus; 4,500
C) shortage; 6,500
D) surplus; 6,500
E) shortage; 9,500
5. Figure 5-1
The diagram below represents the market for butter.