Supply and Demand
Draw a properly labeled graph and draw the change based on the following scenario.
Suppose that aluminum is a key production input in the production of bicycles. If the price of aluminum rises, and all other variables are held constant.
Decrease in supply
Total revenue falls as the price of a good increases if price elasticity of demand is...
Elastic
What is the definition of producer surplus?
The difference between the price received by a seller and the amount they were willing to sell it for.
Assume a market is in equilibrium. What happens to consumer surplus if a binding price ceiling is imposed?
Increase
Most correct wins. 60 seconds
What are the four words in the English language that end in “dous”?
horrendous, stupendous, hazardous, tremendous
Draw a graph with a demand curve for doughnuts.
Show what happens to the demand for doughnuts when the price of muffins decreases.
Decrease in demand (substitute good becomes cheaper)
Suppose a fall in the price of blueberries from $6 to $4 per bushel increases the quantity demanded from 3,000 to 5,000 bushels. Calculate the PED and determine if demand is elastic, inelastic or unit elastic.
2, elastic
Identify the equilibrium price and quantity
$60; 400 units
Calculate the total consumer surplus with the price floor at $70.
$1000
Most correct wins the points. 60 seconds
In order from left to right, what color are the rings on the Olympic flag.
Blue Yellow Black Green Red
Draw a properly labeled graph with a supply curve for coffee.
Show the change on the graph if the government grants coffee producers a $5000 subsidy for every pound of coffee sold.
Increase in Supply
Assume that the price for mid-sized bulldozers increased from $250,000 to $300,000 and the quantity supplied increased from 2,000 to 2,200. Calculate the price elasticity of supply coefficient and determine if supply is elastic, inelastic or unit elastic.
.5 inelastic
How much total consumer surplus do all the buyers receive when the market is at equilibrium?
$4000
Calculate the deadweight loss with the price floor at $70.
$3500
What sport was the first spot to ever be broadcast on television?
Baseball
Studies have shown that a virus has flared up in Central and South America. So far no one has contracted the disease in the U.S., but there is growing concern it will spread throughout the country. Companies that produce insect repellent products have experienced issues with their suppliers in China as they won't open up production until mid-January, so new orders won't be delivered until early February.
Given the scenario:What will likely happen to the equilibrium price and equilibrium quantity of insect repellent products?
Price would increase; Quantity would be indeterminate.
Suppose that a decrease in the price from $20 to $10 of Good G resulted in a decrease in the quantity demanded from 1,000 to 800 of Good F. Calculate the cross price elasticity of demand and state if they are complements or substitutes.
.4; Substitutes
How much total producer surplus do all the sellers receive when the market is at equilibrium?
$6000
Calculate the total producer surplus with the price floor at $70.
$8500
Closest Wins!
John Cena holds the record for fulfilling the most Make-A-Wish requests. How many requests has he fulfilled?
650
The apple market is in equilibrium. Suppose we observe the apple growers are using more pesticides to increase apple production. At the same time, we hear that the price of pears, a substitute for apples is rising. What will happen to the price and quantity of apples?
Price Indeterminate
Quantity Increase
Suppose that Sean received an increase in his income from $6,000 to $18,000 of Good L. This increase in income resulted in a decrease in the quantity demanded from 2,000 to 1,500 of Good O. Calculate the income elasticity of demand and state if they are normal or inferior goods.
-.125; inferior
At a price of $75, there would be a ___________ of video games. The amount would be ______
Surplus; 500 video games
If the government were to impose the following excise tax. Identify the following: amount of the tax, amount consumers pay, amount sellers receive, total amount government receives in tax revenue.
Amount of tax: $25
Consumers pay: $70
Sellers Receive: $45
Tax Revenue: $5000
How many U.S. state capitals have the word “City” in their name?
Jefferson City, Oklahoma City, Carson City, Salt Lake City