4. Suppose you are considering producing and selling a new product and you have surveyed all the potential consumers in your market. The following table represents the demand curve you have derived for your product along with your supply curve. Based on this information, which of the following statements is true? 1.Equilibrium price is $340. 2.If price is $320, there exists excess supply in the amount of 3000 in this market. 3.If price is $330, there exists excess supply in the amount of 1000 in this market. 4.If price is $340, there exists excess supply in the amount of 3000 in this market. 5.If price is $350, there exists excess demand in the amount of 6000 in this market. 5. The price of gasoline has increased significantly over the last year. However, suppliers still sell the same quantity of gasoline as last year. Which one of the following is a possible explanation for this market outcome? 1.The magnitude of a decrease in demand is greater than the magnitude of an increase in supply. 2.The magnitude of a decrease in demand is smaller than the magnitude of a decrease in supply. 3.An increase in demand and a decrease in supply are of the same magnitude. 4.An increase in demand and an increase in supply are of the same magnitude. 5.None of the above. 6. Due to a change in market supply equilibrium price changed from $1 to $2 and equilibrium quantity changed from 10 units to 5 units. Which of the following statement is correct about this market?
7. Suppose that gasoline price is $3/gallon and you buy 30 gallons of gasoline per month. When gas price has risen to $3.6/gallon, your gas consumption decreased to 27 gallon per month. What is the price elasticity of your gasoline demand? 8. John is running a furniture retail shop. One day, He found good antique chairs at a wholesale store, and the price per chair was $120. He decided to buy 20 chairs at this price. However, the price went up to $160 in a few days because David, another retail shop owner, also wanted to buy them. As a result, John decided to buy only 14 chairs. What is John's price elasticity of demand for the antique chair? 9. A fall in the price of lemons from $10.5 to $9.0 per bushel increases quantity demanded from 100 bushels to 170 bushels. What is the price elasticity of demand for lemons? 1.4.9 2.‐4.9 3.46.7 4.‐46.7 5.‐0.2