The diagram below represents the market for butter. Refer to Figure 5-1. The equ

Question

The diagram below represents the market for butter. Refer to Figure 5-1. The equilibrium price of butter is: $5. $3. $2. $I. 50 cents. Refer to Figure 5-1. If the current price of butter equals $5, you would expect to find: a. the market in equilibrium at 2,000 pounds per year. the market in equilibrium at 8,000 pounds per year. that the market is not in equilibrium, and that the quantity supplied is greater than the quantity demanded. that the market is not in equilibrium, and that the quantity demanded is greater than the quantity supplied. Refer to Figure 5-1. At a market price of $4, there exists a: shortage equal to 4,000 pounds of butter. surplus equal to 4,000 pounds of butter. shortage equal to 7,000 pounds of butter. surplus equal to 7,000 pounds of butter. market equilibrium. Refer to Figure 5-1. At a market price of $1, there exists a: shortage equal to 5,000 pounds of butter. surplus equal to 5,000 pounds of butter. shortage equal to 11,000 pounds of butter. surplus equal to 11,000 pounds of butter. market equilibrium. Refer to Figure 5-1. If a price floor of $4 is imposed, units of butter will be sold. 7,000 5,000 4,000 3,000 2,000

Explanation / Answer

5 B 6 C 7 B 8 C 9 D The Answers are very much self-explanatory If you have any specific question, I will be glad to answer.

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