CoronaQuiz #10

The table above shows the quantity of gasoline supplied and demanded at various prices in a country. If the government sets a price floor of $2.75 on a gallon of gasoline, what is the price per gallon?

• $2.75

• $3.00

• $3.25

• $3.75

Which of the following is true for both a monopolistically competitive firm and a perfectly competitive firm in long-run equilibrium?

• Marginal cost is greater than marginal revenue.

• Price is greater than marginal cost.

• Price is equal to average total cost.

• Price is equal to marginal cost.

Which of the following will most likely happen in the market for good X if the price of good X decreases?

• The supply of good X will decrease.

• The demand for good X will increase.

• The quantity demanded for good X will increase.

• The demand will decrease and the supply will increase.

The amount of product Z that must be forgone in order to obtain some amount of product Y is called:

• factor payments

• opportunity cost

• marginal product

• income effect

Which of the following would shift the supply curve of strawberries?

• A decrease in the consumption of strawberries.

• An increase in the price of strawberries.

• A strike by all farm workers.

• An increase in household incomes.

Which of the following indicates that a firm is experiencing economies of scale?

• The firm's long-run supply curve is horizontal.

• The firm's long run marginal cost curve increases as output increases.

• The firm's long-run average total cost curve decreases as output increases.

• The firm's long-run total cost decreases as output increases.

Consumer surplus exists because of the

• Surplus of money that wealthy consumers hold.

• Willingness of some consumers to pay a price higher than the market price for some units of a good.

• Additional utility that households obtain when the prices of substitutes fall.

• Increase in the availability of goods when income rises.

Which of the following is true of the cross-price elasticity of demand?

• It can indicate if a good is a necessity or a luxury.

• It is greater than zero for two goods that are substitutes.

• It is close to zero if the two goods are closely related.

• It increases as income increases.

If shirts and ties are complements and if the price of shirts increases due to an increase in the price of cotton, which of the following is most likely to occur in the market for ties in the short run?

• The equilibrium price and quantity of ties will increase.

• The equilibrium price and quantity of ties will decrease.

• The equilibrium price of ties will increase and the equilibrium quantity will decrease.

• The demand for ties will increase.

Collusion, price leadership, and price wars are usually observed in which of the following market structures?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly