Exam 4: Demand, supply, and Market Equilibrium

Figure 4.2 -Figure 4.2 depicts three market situations.Which of the panels depicts a market in which the price is likely to rise?

If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

In the Application,what did the Justice Department identify as the explanation for why (illegal)drug prices have been dropping?

If a government imposes a tax on a product produced by a company,the tax will ________.

On the "supply side" of a market,producers indicate to consumers what they are willing to sell,in what quantity,and at what price.

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 $1000,then the apartment market in San Francisco will experience:

If the price of hotdogs are expected to decrease in the future,then:

As consumers prefer smaller and more fuel-efficient cars,the:

The market supply curve for a particular good:

If a market is in equilibrium,there is not any pressure to change the price upward or downward.Is this a true or false assumption?

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 3 the price must be:

Figure 4.7 -If demand falls in Figure 4.7,then the equilibrium:

Judy demands more peanuts as her income increases.From this,we can conclude that,for Judy:

Figure 4.7 -If supply increases in Figure 4.7,then the equilibrium:

If the price of hotdogs are expected to increase in the future,then:

Figure 4.4 -Figure 4.4 illustrates the demand for guitars.Assume that guitars and guitar strings are complements.A decrease in the price of guitar strings would bring about a movement from:

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

If the law of supply holds,then the supply curve can never:

A perfectly competitive market is a market that has:

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 6,the price must be: