Biology Forums - Study Force

A decrease in demand with the supply held constant leads to:
 a. an increased equilibrium price and an increased equilibrium quantity.
  b. a decreased equilibrium price and a decreased equilibrium quantity.
  c. a decreased equilibrium price and an increased equilibrium quantity.
  d. an increased equilibrium price and a decreased equilibrium quantity.

QUESTION 2

Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town had been steady at 600, but then the college expanded enrollment from 10,000 to 12,000 . Suddenly there is a shortage of rental housing at the prevailing price of 600 . Which of the following is most likely to be true?
 a. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and more rental units available on the market.
  b. The shortage occurred because supply increased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.
  c. The shortage occurred because demand decreased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.
  d. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and fewer rental units available on the market.

QUESTION 3

At the equilibrium price, deadweight loss is minimized.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Deadweight loss results from too few or too many resources used in a given market.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

The deadweight loss equals the consumer surplus minus the producer surplus resulting from a non-equilibrium price.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Deadweight loss results from a misallocation of resources.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

Total producer surplus is the area below the equilibrium price and above the supply curve.
 a. True
  b. False
  Indicate whether the statement is true or false

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