Exam 4: Demand, supply, and Market Equilibrium

When a consumer's income decreases,the consumer:

When consumers find their incomes increasing,they tend to buy more ________.

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

If incomes increase and electricity is a normal good,then:

When there is a change in the quantity demanded it means that the:

If incomes increase and Honda Civics are considered inferior goods,then:

Suppose that ramen noodles are an inferior good.When income decreases,the equilibrium quantity of ramen noodles will ________ and the equilibrium price of ramen noodles will ________.

Assume that compact discs and compact disc players are complements.When the price of compact disc players decreases:

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

Typically,a demand curve will represent what relationship?

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.An increase in the number of guitar manufacturers would most likely cause a movement from:

Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________.

Figure 4.4 -Figure 4.4 illustrates the demand for guitars.An increase in the number of guitar players in the market would bring about a movement from:

Suppose that the price of fertilizer,an input in the production of corn,rises.We would predict that the equilibrium quantity of corn will ________ and the equilibrium price of corn will ________.

The purpose of advertising products to consumers is to:

When the price of apples goes up:

Suppose that consumption of oat bran is found to reduce cholesterol and improve health.The result is that:

If a technological advance makes it possible to produce bananas at a lower cost:

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

Which of the following is the most likely complement for hamburgers?