Exam 4: The Market Forces of Supply and Demand

What could be one result of a cold snap in Florida?

In a competitive market, why does each seller have limited control over the price of his product?

Refer to the following: A. What is the difference between a "change in supply" and a "change in quantity supplied"? (Graph your answer). B. For each of the following changes, determine whether there will be a change in quantity supplied or a change in supply. a. a change in the resource cost b. a change in producer expectations c. a change in price d. a change in technology e. a change in the number of sellers

Market demand is given as Qd = 400 - 2P. Market supply is given as Qs = 3P + 100. In a perfectly competitive equilibrium, what will be price and quantity?

If 50-inch flat screen TVs became cheaper and buyers expected Netflix subscription prices to fall next year, what could we safely conclude would happen to the equilibrium price of a new Netflix subscription?

If a decrease in income increases the demand for a good, what is the good called?

Suppose that the incomes of buyers in a particular market for a normal good increase and there is also an increase in input prices. What would we expect to occur in this market?

Market demand is given as Qd = 80 - 2P. Market supply is given as Qs = 2P. What would result if the market price were $25?

Suppose that a decrease in the price of X results in less of good Y sold. What are X and Y called?

What will happen if the price of a good is low?

How is a market supply curve constructed?

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

A supply curve slopes upward because, all else equal, a higher price means a greater quantity supplied.

Smart phones are normal goods. What will happen to the equilibrium price and quantity of smart phones if phone plans become more expensive, fewer firms produce smart phones, and smart phone users experience a decrease in income?

A dress manufacturer is expecting higher prices for dresses in the near future. What would we expect?

Figure 4-2 -Refer to the Figure 4-2. What would happen at a price of $35?

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

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

Why do markets move toward equilibrium 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 $50?