Microeconomics Review B

Suppose the government sets the price for chocolate bars at $2.00.

Which of the following statements best describes the effect of this price control?

• There would be a surplus of 400 chocolate bars.

• There would be a shortage of 200 chocolate bars.

• The price would remain at equilibrium.

Suppose the government sets the price for chocolate bars at $0.80.

Which of the following statements best describes the effect of this price control?

• There would be a surplus of 100 chocolate bars.

• There would be a shortage of 200 chocolate bars.

• The price would remain at equilibrium.

Jamie owns an auto repair shop. Which option will NOT change the supply curve?

• Consumers in the area decide they want their oil changed instead of having their tires rotated.

• Jamie has to pay her workers a higher wage.

• Technology advances for oil changes.

• The number of auto repair shops in her area

Organize these options into the right categories

Groups:

(a) substitutes

,

(b) complements

• cereal and milk

• books and magazines

• ice cream and frozen yogurt

• pork and beef

• bread and butter

• coffee and coffee makers

Unlimited liability is a disadvantage of a (a)  

• sole proprietorship
• partnership
• corporation
• monopoly

A corporation raises money by (a)   .

• selling stocks or shares of the company
• hoping for the best
• donating to charity