Exam 4: Demand, supply, and Market Equilibrium

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

Suppose that steak is a normal good.When income decreases,the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________.

Flour is used to produce bread.If the price of flour increases:

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

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.From the point of view of IBM,$1300 is the:

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

The law of demand states that the quantity demanded of a product increases as:

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

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

If incomes increase and hotdogs are inferior goods,then:

What is the difference between "an increase in supply" and "an increase in quantity supplied" of a good?

Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium quantity of spinach will ________.

The market supply curve is:

If the number of beer producers decreases:

According to the Application,which of the following is the most likely reason for the falling prices of wool worldwide?

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans.If the actual price of blue jeans is $50,there is:

A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers.This is sometimes called a:

If the population increases,what will this do for the market demand for most products?

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

What is the "law of demand"?