Exam 4: The Market Forces of Supply and Demand

If a good is "normal," what will an increase in income result in?

Pens are normal goods. What will happen to the equilibrium price of pens if the prices of pencils falls, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to fall in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers decrease?

Which best describes the relationship shown by a demand table?

What is a demand curve?

If cigarettes and marijuana had been found to be substitutes, what would a tax placed on cigarettes do?

Fill in the accompanying table, showing whether equilibrium price and equilibrium quantity go up, down, or stay the same.

What are the roles of buyers and sellers in a perfectly competitive market?

What will a technological advancement do?

Suppose that demand increases and supply decreases. What would we expect to happen in the market?

What is the side of the market that deals with the willingness and ability to produce and sell?

Figure 4-4 -Refer to the Figure 4-4. If the price is $25, what would the quantity demanded be?

There are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered?

What is the price where quantity supplied equals quantity demanded?

Most studies indicate that low cigarette prices are associated with greater use of marijuana. What type of goods does this indicate that cigarettes and marijuana are?

What is the market demand?

If the demand for a product increases, what would we expect?

Flour is the main input in the production of bread. All else equal, if the price of flour decreases, what would we expect?

On what basis is a good considered either a normal good or an inferior good?

A local utilities company might be a monopolist.

Basketballs and basketball nets are substitute goods.