57) 57) Supply Pa Price Q 2 Quantity Refer to the above graph showing the market for a product. Which of the following could not explain the indicated increase in equilibrium price from P , to P2? A) an increase in the price of a substitute product B) an increase in production costs C) an increase in consumer incomes D) a decrease in the price of a complementary product 58) Black markets are associated with 58) A) ceiling prices and the resulting product surpluses. B) price floors and the resulting product shortages. C) price floors and the resulting product surpluses. D) ceiling prices and the resulting product shortages. 59) If many people in a community get flu shots, the whole community benefits, including 59) those that did not get flu shots. Therefore, not enough people may decide to get the shots. This is one illustration of A) monopoly power due to lack of competition. B) supply-side market failure. C) demand-side market failure. D) the market allocating resources efficiently. 60) If the market price of a product increases, then the total 60) A) revenues of sellers will definitely decrease. B) consumer surplus will increase. C) revenues of sellers will definitely increase. D) consumer surplus will decrease.53) Duckistan Production Possibilities 53) D E A B C 0 Civilian Goods 20 18 14 4 0 2 3 Military Goods Herbania Production Possibilities E A B C D 0 Civilian Goods 40 36 26 14 Military Goods 0 2 3 4 Refer to the tables. Opportunity costs of producing military goods are A) larger in Duckistan than in Herbania. B) increasing in Duckistan but constant in Herbania. C) smaller in Duckistan than Herbania. D) constant in both Duckistan and Herbania. 54) In a market system, resources will move away from an industry when 54) A) profits of firms in the industry are rising. B) profits of firms in other industries are falling. C) the production of output in the industry is rising. D) demand for the industry's product is decreasing. 55) If competitive industry Z is making substantial economic profit, output will A) expand in industry Z, but no new firms will enter the market. 55) B) fall in industry Z and firms will likely leave the market. C) fall in all industries except industry Z. D) expand in industry Z, as more resources will move to that industry. 56) Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental economic question? 56) A) Who is to receive the output? B) How can the system accommodate change? C) How is the output to be produced? D) Which output will be produced? 16