Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 300 - 0.5P. Market supply is given as Qs = 50 + 2P. What would result if the market price were $140?

What does supply-and-demand analysis involve?

Figure 4-1 -Refer to the Figure 4-1. What is the movement from S to S1 called?

New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline falls, the price of steel increases, public transportation becomes more expensive and less comfortable, auto workers receive higher wages, and automobile insurance becomes less expensive?

If buyers now wanted to purchase larger quantities of cereal, what do we know about its demand curve?

Smart phones are normal goods. What will happen to the equilibrium price and quantity of smart phones if phone plans become cheaper, more firms start producing smart phones, and smart phone users experience an increase in income?

What is the amount of the good buyers are willing and able to purchase?

A reduction in an input price will cause a change in quantity supplied, but not a change in supply.

If Nick receives an increase in his pay, what would we expect?

What does the law of demand imply?

What might cause a movement along the supply curve?

Market demand is given as Qd = 95 - P. Market supply is given as Qs = 3P + 15. In a perfectly competitive equilibrium, what will be the quantity?

What is an example of complementary goods?

For a seller, which of the following is NOT positively related?

Market demand is given as Qd =150 - P. Market supply is given as Qs = 4P. What would result if the market price were $40?

Which would NOT be a role that prices play in a market economy?

Market demand is given as Qd = 150 - P. Market supply is given as Qs = 4P. What would result if the market price were $15?

What will happen to the equilibrium price of new textbooks if more students attend university, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?

What represents the behaviour of buyers?

What would happen if both supply and demand increase?