Demand and Supply Analysis

The government imposes a tax on a good, resulting in a reduction in both consumer and producer surplus. What type of tax is it likely to be?

If the cross-price elasticity of demand between two goods is -1.8, how would you interpret this value?

In a market characterized by perfect competition, a technological advancement reduces production costs for all firms. What would be the expected impact on market equilibrium price and quantity?

In a monopolistic market, a firm maximizes profit where marginal revenue equals:

In a monopolistic market, if marginal revenue is positive, what can be inferred about the elasticity of demand?

How does the elasticity of supply affect the slope of the supply curve?

If the price elasticity of demand for a good is -2.5, how would you interpret this value?

In a perfectly competitive market, what is the relationship between marginal revenue and price?

A luxury car manufacturer reduces its prices by 20%, leading to a 30% increase in quantity demanded. What can be inferred about the price elasticity of demand for these luxury cars?

If the price of coffee increases significantly, what would be the expected impact on the market for tea, assuming tea is a substitute for coffee?

A consumer experiences a 10% increase in income and, as a result, buys 8% more hamburgers and 5% more hot dogs. What can be inferred about the goods?

In a perfectly competitive market, the demand curve is given by Qd​=100−2P, and the supply curve is Qs​=5P. What is the equilibrium price and quantity?

The government imposes a price ceiling below the equilibrium price in the market for apartments. What is the likely consequence?

A 10% increase in the price of a necessity results in a 5% decrease in quantity demanded. What is the price elasticity of demand for this good?

Suppose there is a sudden increase in consumer income in the market for smartphones. What would be the likely impact on the equilibrium price and quantity of smartphones?

If the government imposes a tax on the production of a good, how does this affect the market supply curve?

If the price elasticity of demand is calculated to be -2.5, what does this imply about the demand for the good?

In a market where the quantity demanded equals the quantity supplied, what term is used to describe this point?

A technological advancement that allows firms to produce a good more efficiently is likely to result in:

If the price of a good decreases and, as a result, the quantity demanded increases, this is indicative of: