Exam 4: Demand, supply, and Market Equilibrium

If the government imposes a price ceiling that is above the equilibrium price,then the market will experience:

Figure 4.4 -Figure 4.4 illustrates the demand for guitars.Assume guitars are an inferior good.An increase in income would bring about a movement from:

What is the difference between a "shift in the supply curve" and a "movement along the supply curve"?

If a computer company will sell a laptop only if the price is $400 or higher,then $400 is known as:

An increase in the amount of subsidies that a public university receives would result in:

Suppose that in October the price of a cup of cafe latte was $1.50 and 400 lattes were consumed.In November the price of a latte was $2.00 and 200 lattes were consumed.What might have caused this change?

Figure 4.2 -In Figure 4.2,which of the panels depicts a market in which there is an excess demand for a product?

Figure 4.6 -Figure 4.6 illustrates a set of supply and demand curves for a product.Suppose that the market is currently in point A.If the price of the input of the product decreases,the market will move to point:

In the application,when the government lowered the price of cigarettes by lowering the tax rates,the response of the consumer was:

Suppose that the population of a country increases.Assuming that people in that country enjoy eating steak,we would predict that the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________ in that country.

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $50,we would expect the price of blue jeans to ________,the quantity demanded of blue jeans to ________,and the quantity supplied of blue jeans to ________.

People will buy more of a normal good when their income decreases.

If a government imposes a tax on the producers of a product,in addition to making the product more costly and less profitable,the tax will ________.

The law of demand can be defined as:

If the government imposes a price floor that is below the equilibrium price,then the market will experience:

Name at least three variables that can affect the demand for a product and the market equilibrium.

When consumers are willing to buy more than producers are willing to sell:

Figure 4.6 -Figure 4.6 illustrates a set of supply and demand curves for a product.If the good were inferior and the consumer's income decreases,then this can be illustrated as moving from point:

Bananas and apples are substitutes.When the price of bananas falls,the equilibrium quantity of apples will ________ and the equilibrium price of apples will ________.

A decrease in demand for coffee can be caused by: