Problem%20Set%20Chp.4

Problem%20Set%20Chp.4 - Problem Set Chp.4: Demand and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

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

Unformatted text preview: Problem Set Chp.4: Demand and Supply Applications MULTIPLE CHOICE: Choose the one alternative that best completes the statement or answers the question. 1. The adjustment of ________ is the rationing mechanism in free markets. A. price. B. quantity. C. supply. D. demand. 2. It is necessary to ration a good whenever __________ exists. A. excess demand B. excess supply C. a surplus 3. Consider a market that has many buyers but only one seller. Assume the seller has only one unit of the product to sell. Then the market demand curve will be ________ and the seller's supply curve will be ________. A. downward sloping; upward sloping. B. horizontal; horizontal. C. downward sloping; vertical. D. vertical; upward sloping. 4. When government imposes price ceilings and price floors in a market A. price no longer serves as a rationing device. B. efficiency in the market is increased. C. shortages and surpluses are eliminated. D. buyers and sellers are both better off. 5. The government wants to protect consumers from rising food prices....
View Full Document

Page1 / 3

Problem%20Set%20Chp.4 - Problem Set Chp.4: Demand and...

This preview shows document pages 1 - 2. Sign up to view the full document.

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