1. If external benefits are taken into account in the market the demand curve wo
ID: 1202073 • Letter: 1
Question
1.
If external benefits are taken into account in the market
the demand curve would shift to the left.
the supply curve would become vertical.
the demand curve would shift to the right.
the supply curve would shift to the left.
2.
Suppose that consumer income decreases and that hamburger is an inferior good. Which of the following will occur in the market for hamburger?
Market clearing price will fall, and equilibrium quantity will rise.
Market clearing price will rise, and equilibrium quantity will fall.
Market clearing price will rise, and equilibrium quantity will rise.
Market clearing price will fall, and equilibrium quantity will fall.
3.
Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is
environmental restrictions on lumbering in the Pacific Northwest were relaxed.
government prevented price gouging during the reconstruction period.
prices of construction materials fell in the Midwest.
greed by suppliers of construction materials increased.
4.
All of the following are characteristics of public goods EXCEPT
The good can be consumed by everyone at the same time without reducing what is available for anyone else.
Public goods can be used by more people at no additional cost.
The goods are perfectly divisible.
the exclusion principle
the demand curve would shift to the left.
the supply curve would become vertical.
the demand curve would shift to the right.
the supply curve would shift to the left.
2.
Suppose that consumer income decreases and that hamburger is an inferior good. Which of the following will occur in the market for hamburger?
Market clearing price will fall, and equilibrium quantity will rise.
Market clearing price will rise, and equilibrium quantity will fall.
Market clearing price will rise, and equilibrium quantity will rise.
Market clearing price will fall, and equilibrium quantity will fall.
3.
Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is
environmental restrictions on lumbering in the Pacific Northwest were relaxed.
government prevented price gouging during the reconstruction period.
prices of construction materials fell in the Midwest.
greed by suppliers of construction materials increased.
4.
All of the following are characteristics of public goods EXCEPT
The good can be consumed by everyone at the same time without reducing what is available for anyone else.
Public goods can be used by more people at no additional cost.
The goods are perfectly divisible.
the exclusion principle
Explanation / Answer
1. the demand curve would shift to the right.
2. Market clearing price will fall, and equilibrium quantity will fall.
3. government prevented price gouging during the reconstruction period.
4. The goods are perfectly divisible.
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