CFA #7 (Supply, Demand, Equ, & PF, PC)

Suppose that the market for coats is described as follows: What is the equilibrium price of coats?

• 120

• 100

• 80

• 60

When a price ceiling is in place keeping the price below the market price, what’s larger: quantity demanded or quantity supplied?

• Quantity demanded

• Quantity supplied.

• Indeterminate with the given information.

• Neither

Suppose the government sets a price ceiling of $80. How large will the shortage be?

• 5 million coats

• 4 million coats

• 3 million coats

• 2 million coats

Between 2000 and 2008, the price of oil increased from $30 per barrel to $140 per barrel, and the price of gasoline in the United States rose from about $1.50 per gallon to over $4.00 per gallon. Unlike in the 1970s when oil prices spiked, there were no long lines outside gas stations. Why?

• Government intervened to prevent lines

• Government intervened to enact gasoline rations

• There was no price control on gasoline at the time

What is the equilibrium quantity in this graph?

• $1.50
• $1.00
• 600
• 800

At the price of 1.00 there is a 

• shortage of 200
• surplus of 200
• shortage of 400
• surplus of 400

An effective price floor must be set above equilibrium, resulting in:

• a shortage
• a surplus
• limited choices
• None of the above

If the government creates a price floor of $80, which one of the following statements is correct?

• The quantity demanded = 60
• The quantity supplied = 180
• There is a shortage of 140
• There price floor is ineffective

What would result if the price were set at $1.75

• Surplus, Quantity Supplied is greater

• Shortage, Quantity Demanded is greater

• Quantity Supplied = Quantity Demanded

• $1.75

a person or company that makes, grows, or supplies goods to sell is called the?

• damand
• price
• producer
• shortage