c23 - Cowen,Microeconomics,Chapter3completed...

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Cowen, Microeconomics, Chapter 3 completed Total score: 15 out of 20, 75%  A surplus occurs when:   A. the quantity supplied is less than the quantity demanded.  B. the quantity supplied is greater than the quantity demanded.  C. the quantity supplied equals the quantity demanded.  D. demand does not exist. 1 out of 1 Correct. A surplus is a situation in which the quantity supplied is greater than the quantity demanded.   If there is a shortage in the market for iPods:   A. the price of iPods will rise.  B. the price of iPods will fall.  C. the supply of iPods will rise.  D. the demand for iPods will rise. 1 out of 1 Correct. Competition pushes prices up when there is a shortage.   Equilibrium occurs when:   A. the quantity demanded is greater than the quantity supplied.  B. the quantity demanded is less than the quantity supplied.  C. the quantity demanded is equal to the quantity supplied.  D. None of the above. 1 out of 1 Correct. Equilibrium occurs when the quantity supplied equals the quantity demanded.   Refer to the following diagram.  At market equilibrium:
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 A. price equals $6 and quantity equals 55 units.  B. price equals $5 and quantity equals 55 units.  C. price equals $5 and quantity equals 40 units.  D. price equals $6 and quantity equals 40 units. 1 out of 1 Correct. Market equilibrium occurs when the quantity supplied equals the quantity demanded.   Refer to the following diagram. When the price equals $4, there is a:  A. surplus of 15 units.
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 B. surplus of 30 units.  C. shortage of 15 units.  D. shortage of 30 units. 1 out of 1 Correct. A shortage occurs when the market price is below equilibrium.  The shortage is 70-40=30 units.   Refer to the following diagram. If the price equals $4, market competition will:  A. push up the market price.  B. push down the market price.  C. keep the market price stable at that level.
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