Question 1

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Accepted Answer

A)  price will be $20 and quantity will be 10
B)  price will be $20 and quantity will be 40
C)  price will be $10 and quantity will be 20
D)  price will be $40 and quantity will be 20E) A) and C)
F) None of the above

Question 2

There are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered?

Accepted Answer

A)  oligopolistic
B)  monopolistic
C)  perfectly competitive
D)  monopolistically competitiveE) None of the above
F) A) and B)

Question 3

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto workers negotiate higher wages?

Accepted Answer

A)  price will fall and the effect on quantity is ambiguous
B)  price will rise and the effect on quantity is ambiguous
C)  quantity will fall and the effect on price is ambiguous
D)  quantity will rise and the effect on price is ambiguousE) B) and C)
F) A) and D)

Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Correct Answer
verified

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto workers negotiate higher wages?

Correct Answer
verified

There are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered?

Correct Answer
verified

Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Correct AnswerverifiedShow Answer

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto workers negotiate higher wages?

Correct AnswerverifiedShow Answer

There are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified