Transcript Supply and Demand

Supply and Demand
Quiz 2
(You may identify more than one
correct answers to each questions.)
1.Which of the following would result in
an increase in demand for music CDs?
a. An increase in the price of CD players
b. A decrease in the price CD players
c. An increase in the price of CDs
d. A decrease in the price of CDs
e. A technological improvement that
lowers the cost of CD production.
f. The unavailability of cassette players in
most new cars.
2. Which of the following (ceteris paribus) would
cause an increase in the equilibrium price of gasoline
but a reduction in its equilibrium quantity?
a. An in crease in the demand for gasoline due to the increased number
of SUVs on the road
b. A reduction in the crude oil price due to the discovery of new oil
reserves
c. An increase in demand due to increased consumers’ interest in larger
SUVs and trucks along with a reduction the crude oil prices that have
resulted in a significant increase in the supply of gasoline.
d. A new environmental law results in a significant increase in the cost
of gasoline production.
3. If New York State gave a $2000 cash grant to each person who
enrolls, as a full-time student, in one of SUNY colleges,
a. Demand for education at SUNY schools would increase
b. Quantity demanded for education at SUNY schools would
increase
c. Demand for education at New York private colleges might decrease
d. Supply of private college education would increase
e. Supply of public education by SUNY colleges would increase
f. Both supply of and demand for private college education would
increase
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Q
4. The above diagram represents (daily) supply of and demand for seats
in the only movie theatre in small town.
What price or prices would guarantee that all the seats in the
theatre would be sold?
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100 150 200 250 300 350
Q
5. The above diagram represents (daily) supply of and demand for seats
in the only movie theatre in small town.
At what price will 100 seats of the theatre go unsold?