Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market? Suppose the current price is 12.00.
What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.
Ques. 2Suppose bad weather decreases the wheat harvest by 12 percent. If the price elasticity of demand for wheat is 0.6, how would the crop failure affect the price of wheat? Would the crop failure benefit or harm wheat farmers?
What will be an ideal response?
Ques. 3In a perfectly competitive market that is in long-run equilibrium, a rightward shift in the market demand curve results in
A) the price falling in the short run.
B) the firms' economic profits falling in the short run.
C) firms leaving the industry in the long run.
D) none of the events listed above.
Ques. 4When a group is discriminated against, its
A) wages fall but its employment does not.
B) employment and its wages decrease.
C) employment decreases but its wages do not.
D) employment and its wages are unaffected.
Ques. 5What are the four types of markets? Give a brief description of each type.
What will be an ideal response?
Ques. 6Pat's Catering finds that when it caters 20 meals a week, its total cost is 6,000. If Pat has total variable cost of 5,000, what is Pat's total fixed cost?
A) 50
B) 250
C) 1,000
D) 6,000
Ques. 7In the used car market without warranties, adverse selection results in
A) sellers of lemons claiming that their car is a lemon.
B) only lemons being available for sale.
C) the market price of used cars equal to that of good used cars.
D) all of the above.
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