Economics Final Review, Part 2

A shortage of hamburgers would result if the actual market price were

• $2.00 per hamburger

• Any price above $2.00 per hamburger

• Any price below $2.00 per hamburger

• Any price below $2.50 per hamburger

A surplus of hamburgers would result if the actual market price were

• $2.00 per hamburger

• Any price above $2.00 per hamburger

• Any price below $2.00 per hamburger

• Any price below $2.50 per hamburger

If the price of a good is mistakenly set by the producer above the equilibrium price but is free to move, we can expect

• The price to fall

• The quantity demanded to increase

• The quantity supplied to decrease

• All of the above

A change in which the following would cause a movement along the demand curve (change quantity demanded) for Ford trucks, but not a shift in the demand curve (change in demand) for Ford trucks

• Consumer income

• Chevy prices

• Ford prices

• Consumer tastes

If D1 is the current demand curve, the equilibrium price of boots is:

• P1

• P2

• P3

• Q2

At P1, the quantity supplied of boots is:

• Q1

• Q2

• Q3

• S1

If country clothes were to go out of style, which shift would occur?

• D1 to D2

• D2 to D1

• D1 to S1

• P1Q1 to P3Q3

At P3, the market for boots is a:

• Shortage

• Surplus

• Equilibrium

• Balance

Which of the following would be considered an effective price floor (minimum wage)?

• P1

• P2

• P3

• Q1

Which of the following would be considered an effective price ceiling (rent control)?

• P1

• P2

• P3

• Q1