ECON 101 Study Guide - Midterm Guide: Deadweight Loss, Economic Surplus, Economic Equilibrium
ECON 101 Full Course Notes
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1. Which of the following would shift a supply curve in a perfectly competitive market for a good?
A. | a change in the number of buyers | |
B. | a change in input prices | |
C. | a change in price of a consumption complement | |
D. | a change in the good's price |
2. Which of the following would not occur in the short run if a binding price floor were raised in perfectly competitive market?
A. | an increase in total surplus | |
B. | a decrease in consumer surplus | |
C. | a decrease in the quantity actually traded | |
D. | an increase in gap between quantity demanded and quantity supplied |
3. What is price discrimination?
A. | selling products that are similar to, but not exactly the same as a competitor's products | |
B. | selling the same product to different consumers at different prices | |
C. | selling a good at a price above marginal cost | |
D. | selling a good at a price above average variable cost |
4. Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity? (Answers must be within 0.10 of the actual value to be counted as correct.)
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