Exam 4: Demand, supply, and Market Equilibrium

Suppose that a product benefits from a successful advertising campaign.The result is that:

Suppose that a new advertising campaign extolling the virtues of apple juice is successful and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

Suppose that the equilibrium rent for apartments in San Francisco is $1200 per month.If the City of San Francisco legislates that apartment owners cannot charge rent higher than $1900,then the apartment market in San Francisco will experience:

Suppose that people expect that the price of orange juice will fall next month.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________ this month.

A supply curve is defined as the relationship between:

As the price of a product rises,the quantity supplied increases.

Figure 4.1 -Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,if the market quantity demanded is 9 the price must be:

Why is the market supply curve positively sloped?

A decrease in the tuition (i.e. ,price)that a public university charges would result in:

Use the supply and demand model to explain why it is difficult to find an on-campus parking space during peak mid-day times,although it is much easier to find a parking space during less popular evening hours.

Assume that butter and margarine are substitutes.When the price of butter increases:

At a price of $1000,Dell Computer Co.is willing to sell 20 laptops and Compaq is willing to sell 40 laptops.IBM will only sell laptops if the price is $1300 or higher.At $1000,the market supply for laptops is:

Suppose that in 2006,12 million cars were purchased at $15,000 each,while in 2007,10 million cars were purchased at $12,000 each.What might have caused this change?

What does a decrease in population do to the demand for a product?

In the application,what was the reason why the government decreased the tax rates of cigarettes?

Suppose that there are only three consumers of a product.At a price of $3 per unit,the first consumer would buy 6 units of the product,the second consumer would buy 5 units,and the third consumer would buy 7 units of the product.If you drew a market demand curve for this product,the quantity demanded at a price of $3 would be:

If a competitive market operates perfectly,it relies on:

From the Application,we can infer that if the government stops intervening in the market,then the:

Suppose that the price for fully electric vehicle made by Toyota increases.The quantity of fully electric cars sold in the market will:

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