3.3 Test Bank – Flashcards

Which of the following is the correct way to describe equilibrium in a market?

At a product's equilibrium price

Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market?

In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many orange growers were not able to supply fruit to the market. At the pre-hurricane equilibrium price (i.e., at the initial equilibrium price), we would expect to see

Refer to Figure 3-4. If the price is $10,

Refer to Figure 3-4. At a price of $10, how many units will be sold?

Refer to Figure 3-4. If the current market price is $10, the market will achieve equilibrium by

Refer to Figure 3-4. If the price is $15,

Refer to Figure 3-4. At a price of $15, how many units will be sold?

Refer to Figure 3-4. If the current market price is $15, the market will achieve equilibrium by

Refer to Figure 3-5. At a price of $15

Refer to Figure 3-5. At a price of $5, the quantity sold

Refer to Figure 3-5. At a price of $20

Refer to Figure 3-5. At a price of $10, the quantity sold

Refer to Figure 3-5. In a free market such as that depicted above, a surplus is eliminated by

Assume there is a shortage in the market for digital music players. Which of the following statements correctly describes this situation?

In a perfectly competitive market, there are ________ buyers and ________ sellers.

Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the market price is $35. Which of the following statements is true?

Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the price of tote bags is $15. At this price

Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Compare the conditions in the market when the price is $50 and when the price is $35. Which of the following describes how the market differs at these prices?

If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until

Which of the following is evidence of a surplus of bananas?

Which of the following is evidence of a shortage of walnuts?

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. Which of the following events would cause the price differences in these letters to get smaller?

Auctions in recent years have resulted in higher prices paid for letters written by John Wilkes Booth than those written by Abraham Lincoln. What is a reason for this difference in price?