Question : The following table shows the market demand schedule and supply : 1377330

 

 

The following table shows the market demand schedule and supply schedule for notebooks.

 

Price ($/unit)

Quantity Demanded (units)

Quantity Supplied (units)

1

20

4

2

16

6

3

14

10

4

12

12

5

10

14

6

7

17

7

4

20

8

2

22

9

1

25

 

11) Refer to the table above. What is the shortage in the market when the price of a notebook is $1?

A) 0 units

B) 10 units

C) 14 units

D) 16 units

12) Refer to the table above. What is the shortage in the market when the price of a notebook is $3?

A) 4 units

B) 10 units

C) 16 units

D) 20 units

13) Refer to the table above. What is the surplus in the market when the price of a notebook is $9?

A) 16 units

B) 20 units

C) 24 units

D) 26 units

14) Refer to the table above. Which of the following statements is true?

A) There is a surplus of 4 notebooks in the market when the price of one notebook is $5.

B) There is a surplus of 10 notebooks in the market when the price of one notebook is $8.

C) There is a shortage of 4 notebooks in the market when the price of one notebook is $6.

D) There is a shortage of 12 notebooks in the market when the price of one notebook is $4.

15) Refer to the table above. At what price does the market for notebooks clear?

A) $2

B) $3

C) $4

D) $5

16) Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if there is an increase in the school enrollment rate, everything else remaining unchanged?

A) The equilibrium price and quantity remain unchanged.

B) Both the equilibrium price and quantity of notebooks decrease.

C) Both the equilibrium price and quantity of notebooks increase.

D) The equilibrium price increases, but the equilibrium quantity of notebooks decreases.

17) Refer to the table above. Assume that the market for notebooks is in equilibrium.Which of the following is likely to happen if a few sellers of notebooks decide to exit the market, everything else remaining unchanged?

A) Both the equilibrium price and quantity of notebooks remain unchanged.

B) Both the equilibrium price and quantity of notebooks decrease.

C) The equilibrium price of notebooks increases, but the equilibrium quantity decreases.

D) The equilibrium price of notebooks decreases, but the equilibrium quantity increases.

The following figure shows the demand and supply curves for erasers. D is the demand curveand S1 is the initial supply curve.

18) Refer to the figure above. When the demand curve for erasers is D and the supply curve of erasers is S1, the equilibrium price is:

A) $3.

B) $4.

C) $5.

D) $7.

19) Refer to the figure above. When the demand curve for erasers is D and the supply curve of erasers is S1, the equilibrium quantity is:

A) 10 units.

B) 20 units.

C) 40 units.

D) 60 units.

20) Refer to the figure above. When the demand curve for erasers is D and the supply curve of erasers is S1, what is the surplus in the market if the price is $7?

A) 10 units

B) 20 units

C) 50 units

D) 60 units