Exam 4: The Market Forces of Supply and Demand

Which of the following would definitely result in a higher price in the market for solar panels?

Suppose that the Canadian Medical Association announces that men who shave their heads are less likely to die of heart failure. What could we expect to happen?

Figure 4-5 -Refer to the Figure 4-5. Which of the four graphs represents the market for toboggans in August?

Figure 4-4 -Refer to the Figure 4-4. If the price is $10, what would happen?

New iPhones are normal goods. What will happen to the equilibrium price and quantity in the market for iPhones if the price of Android phones fall, the wages of iPhone chip makers increase, some buyers exit the market for iPhones, and the price of iPhone batteries increase?

Which of the following would be an example of a monopoly?

Figure 4-7 -Refer to the Figure 4-7. What does the movement from point B to point A on the graph show?

Figure 4-2 -Refer to the Figure 4-2. What would happen at the equilibrium price?

A movement along a supply curve is called a change in supply while a shift of the curve is called a change in quantity supplied.

What are the forces that make market economies work?

Suppose that the number of buyers in a market increases and a technological advancement occurs. What would we expect to happen in the market?

Figure 4-5 -Refer to the Figure 4-5. Which of the four graphs represents the market for oranges after a deep freeze impacts much of the Florida orange harvest?

Which of the following best resembles a perfectly competitive market?

Figure 4-10 -Refer to the Figure 4-10. What would cause the movement from point B to point A on the graph?

Market demand is given as Qd = 80 - 2P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

If suppliers of cell phone batteries expect the price of their product to fall in the future, what will they do?

How do demand and supply for banana cream pie change if the price of bananas increased?

Market demand is given as Qd =400 - 2P. Market supply is given as Qs = 3P + 100. What would result if the market price were $30?

Whenever a determinant of demand other than price changes, the demand curve shifts.

What does a demand curve illustrate?