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    Tutorial 3 Questions

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    Amelia Ilo
    This document contains an introduction to economics tutorial with multiple choice and short answer questions about concepts like supply and demand, equilibrium price and quantity, substitutes and complements. It also includes calculations involving constructing demand and supply graphs from data and determining equilibrium price and surplus or shortage from total demand and supply schedules.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Tutorial 3 Questions

    Uploaded by

    Amelia Ilo
    20 views4 pages
    This document contains an introduction to economics tutorial with multiple choice and short answer questions about concepts like supply and demand, equilibrium price and quantity, substitutes and complements. It also includes calculations involving constructing demand and supply graphs from data and determining equilibrium price and surplus or shortage from total demand and supply schedules.

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    This document contains an introduction to economics tutorial with multiple choice and short answer questions about concepts like supply and demand, equilibrium price and quantity, substitutes and complements. It also includes calculations involving constructing demand and supply graphs from data and determining equilibrium price and surplus or shortage from total demand and supply schedules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views4 pages

    Tutorial 3 Questions

    Uploaded by

    Amelia Ilo
    This document contains an introduction to economics tutorial with multiple choice and short answer questions about concepts like supply and demand, equilibrium price and quantity, substitutes and complements. It also includes calculations involving constructing demand and supply graphs from data and determining equilibrium price and surplus or shortage from total demand and supply schedules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Introduction to Economics EC100

    Lekima Nalaukai Semester I, 2023


    Tutorial 3 Questions

    A. Multiple Choice

    1. If the demand for a product increases, then we would expect equilibrium price
    A. to increase and equilibrium quantity to decrease.
    B. to decrease and equilibrium quantity to increase.
    C. and equilibrium quantity both to increase.
    D. and equilibrium quantity both to decrease.

    2. If the supply of a product decreases, then we would expect equilibrium price


    A. to increase and equilibrium quantity to decrease.
    B. to decrease and equilibrium quantity to increase.
    C. and equilibrium quantity to both increase.
    D. and equilibrium quantity to both decrease.

    3. Suppose that demand for a good decreases and, at the same time, supply of the good
    decreases. What would happen in the market for the good?
    A. Equilibrium price would decrease, but the impact on equilibrium quantity would be
    ambiguous.
    B. Equilibrium price would increase, but the impact on equilibrium quantity would be
    ambiguous.
    C. Equilibrium quantity would decrease, but the impact on equilibrium price would be
    ambiguous.
    D. Equilibrium quantity would increase, but the impact on equilibrium price would be
    ambiguous.
    Introduction to Economics EC100
    Lekima Nalaukai Semester I, 2023
    Tutorial 3 Questions

    Table 3-10

    The following table shows the number of cases of water each seller is willing to sell at the
    prices listed.

    Price per case Alpine Springs Brook Mountain Cascade Waters Dew Good
    $0.00 0 cases 0 cases 0 cases 0 cases
    $3.00 100 cases 40 cases 60 cases 100 cases
    $6.00 200 cases 80 cases 120 cases 200 cases
    $9.00 300 cases 120 cases 180 cases 300 cases

    4. Refer to Table 3-10. If Alpine Springs and Dew Good are the only two suppliers in this
    market, by how much does the market quantity supplied change with each $3 increase
    in price?
    A. -200 cases
    B. -100 cases
    C. 100 cases
    D. 200 cases

    5. When the price of a good is higher than the equilibrium price,


    A. a shortage will exist.
    B. buyers desire to purchase more than is produced.
    C. sellers desire to produce and sell more than buyers wish to purchase.
    D. quantity demanded exceeds quantity supplied.

    6. If there is a shortage of farm laborers, we would expect


    A. the wage of farm laborers to increase.
    B. the wage of farm laborers to decrease.
    C. the price of farm commodities to decrease.
    D. a decrease in the demand for substitutes for farm labor.
    Introduction to Economics EC100
    Lekima Nalaukai Semester I, 2023
    Tutorial 3 Questions

    B. Short Answers

    1. Define the following


    a. Quantity Demanded
    b. Law of Supply

    2. What is the difference between substitutes and complimentary goods?

    3. List the determinants of Demand


    Introduction to Economics EC100
    Lekima Nalaukai Semester I, 2023
    Tutorial 3 Questions

    C. Calculations

    1. The table below sets the demand and supply schedules for dairy milk in Honiara.

    Price per Liter ($) Quantity Demanded per Quantity Supplied per
    day (liters) day
    (liters)
    5 10 1
    6 8 4
    7 6 6
    8 4 8
    9 1 10

    A. Plot a demand and supply curve based on the information above. (Label your
    graph).
    B. What is the equilibrium price and quantity?
    C. Comment if there is a shortage or surplus when the price is $8 per liter.

    2. Suppose the total demand for wheat and the total supply of wheat per month in the
    Australian grain market are as follows:

    Thousands Price Thousand Surplus (+)


    of bushels per of bushels or
    demanded bushel supplied shortage (-)
    85 $3.40 72 _____
    80 3.70 73 _____
    75 4.00 75 _____
    70 4.30 77 _____
    65 4.60 79 _____
    60 4.90 81 _____

    A. What is the equilibrium price? What is the equilibrium quantity? Fill in the surplus-
    shortage column and use it to explain why your answers are correct.
    B. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of
    your graph correctly. Label equilibrium price P and the equilibrium quantity Q.
    C. Why will $3.40 not be the equilibrium price in this market? Why not $4.90?
    “Surpluses drive prices up; shortages drive them down.” Do you agree?

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