Exam 4: Demand, supply, and Market Equilibrium

An increase or decrease in population will increase or decrease demand.

Suppose that the price of apples decreases and the quantity of apples in the market decreases.Suggest two reasons why this might have happened.

Figure 4.4 -Figure 4.4 illustrates the demand for guitars.An increase in the demand for guitars is represented by the movement from:

When Mary's income increases,she purchases fewer hamburgers.We can conclude that for Mary,hamburger is a(n)________ good.

If an increase in income results in a decrease in the demand for Honda Civics,then Honda Civics are considered:

From the Application,we can infer that the wine lakes will disappear if:

If the equilibrium price of a good increases and the equilibrium quantity of the good decreases,we can conclude that:

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.A decrease in the supply of guitars is represented by a movement from:

Suppose that the price of oranges increases and the quantity of oranges in the market decreases.Suggest two reasons why this might have happened.

Rent control is an example of the government imposing:

Figure 4.6 -Figure 4.6 illustrates a set of supply and demand curves for a product.When the market moves from point A to point B,there has been:

Suppose you have 2 goods,X and Y.If the price of X decreases and you buy more Y,then X and Y are:

Figure 4.7 -If demand and supply rise in Figure 4.7,then the equilibrium:

If the price of crude oil (an input to the production of gasoline)increases,then we will expect to see:

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.An increase in the price of rosewood,which is used to make guitars,would most likely cause a movement from:

Suppose that the government requires that farms use only animals instead of machinery when planting and harvesting corn.This will result in a(n):

If at a price of $1000,8 different laptop manufacturers are willing to sell 20 laptops each.If the 8 manufacturers are the only sellers of laptops in the market,then at a price of $1000,there are ________ laptops supplied in the market.

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.If the government offered a subsidy to guitar manufacturers for each guitar they produce,this would most likely cause a movement from:

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.If firms expect the price of guitars to go up after Christmas,then before Christmas this would most likely cause a movement from:

Suppose that consumers expect that the price of a product will increase in the future.The result is that: