Whenever there is a shortage at a particular price, the quantity sold at that price will equal:
a. the quantity demanded at that price.
b. the quantity supplied at that price.
c. the quantity supplied minus the quantity demanded.
d. quantity demanded plus quantity supplied.

Table

$$\begin{matrix} \text{Price} & \text{Qd} & \text{Qs}\\ \text{\$120} & \text{50} & \text{36}\\ \text{\$150} & \text{40} & \text{40}\\ \text{\$180} & \text{32} & \text{48}\\ \text{\$210} & \text{28} & \text{56}\\ \text{\$240} & \text{24} & \text{70}\\ \end{matrix}$$

shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands. a. What is the quantity demanded and the quantity supplied at a price of $210? b. At what price is the quantity supplied equal to 48,000? c. Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity? d. If the price was$120, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?

Because the market supply curve is the sum of individual producers' supply curves, an increase in the number of producers will cause which of the following? a. the supply curve to shift to the left b. the supply curve to shift to the right c. a movement to the right along the supply curve d. a movement to the left along the supply curve e. the supply to decrease

At the current price, there is a shortage of the product. We would expect the price to:

a) increase, quantity demanded to increase, and quantity supplied to decrease

b) increase, quantity demanded to decrease, and quantity supplied to increase

c) increase, quantity demanded to increase, and quantity supplied to increase

d) decrease, quantity demanded to increase, and quantity supplied to decrease

With reference to Table BP-3:

a. Use the information from the table to create the demand and supply equations.

TABLE BP-3

The table below shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands.

$$\begin{array}{l|l|l} \hline {\text { Price }} &{\text { Qd }} & {\text { Qs }} \\ \hline \$ 120 & 50 & 36 \\ \hline \$ 150 & 40 & 40 \\ \hline \$ 180 & 32 & 48 \\ \hline \$ 210 & 28 & 56 \\ \hline \$ 240 & 24 & 70 \\ \hline \end{array}$$

Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity?

Choose the correct option.

The ________ is where the quantity demanded and quantity supplied are equal at a certain price.

A) surplus

B) supply schedule

C) equilibrium

At the current price there is a shortage of a product. We would expect price to:

A) increase, quantity demanded to increase, and quantity supplied to decrease

B) increase, quantity demanded to decrease, and quantity supplied to increase

C) increase, quantity demanded to increase, and quantity supplied to increase

D) decrease, quantity demanded to increase and quantity supplied to decrease

Complete the statement: the nature of demand indicates that as the price of a good increases:

Consider the following demand and supply schedules for coffee:

What is the price when the market is in equilibrium?

With reference to Table BP-3:

b. Use your demand and supply equations to solve for equilibrium.

TABLE BP-3

In economics, the demand for a good refers to the amount of the good that people:

a. will buy at alternative income levels.

b. need to achieve a minimum standard of living.

c. will buy at various prices.

d. would like to have if the good were free.

Suppose the cost of acquiring a skill increases and the value of marginal product of skill increases. Draw demand-supply graphs of the labor markets for high-skilled and low-skilled labor to explain what happens to the equilibrium wage rate of low-skilled labor, the equilibrium wage rate of highskilled labor, and the number of high-skilled workers employed.

Are markets always in equilibrium?

A) No, they never 'settle down' into a stable price and quantity.

B) No, but if there is no outside interference, they tend to move toward equilibrium.

C) Yes, because very few things tend to alter supply and demand.

D) Yes, they are always at the equilibrium point, or very close to it.