Exam 4: Demand, Supply, and Market Equilibrium

The use of generators to irrigate rice fields in Thailand became economically profitable because the price of rice increased.

A decrease in the amount of subsidies that a public university receives would result in:

An inferior good is defined as a good for which demand decreases when:

Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer. We would predict that the equilibrium quantity of orange juice will _______ and the equilibrium price of orange juice will _______.

When a consumer's income decreases, that consumer tends to buy more _______.

Figure 4.1 -Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant. Assuming Mary and Tom are the only consumers in the market, if the market quantity demanded is 3 the price must be:

Recall Application 1, "Hurricane Katrina and the Baton Rouge Housing Prices," to answer the following questions: -Hurricane Katrina in 2005 caused housing prices to rise in nearby areas like Baton Rouge due to

Recall Application 5, "Droughts in Australia and the Price of Rice," to answer the following questions: -The drought in Australia has caused a shift in the:

Additional factors beyond supply and consumer purchasing desire can affect demand.

If a government imposes a tax on a product produced by a company, the tax will _______.

Suppose you have 2 goods, X and Y. If the price of X decreases and you buy more Y, then X and Y are:

Suppose that a natural disaster substantially increases the cost of producing cheese. We would predict that the equilibrium quantity of cheese will _______and the equilibrium price of cheese will _______.

As the price of a product rises, the quantity supplied increases.

Recall Application 4, "The Bouncing Price of Vanilla Beans," to answer the following questions: -If after a cyclone strikes a vanilla- producing area, farmers in several new countries plant vanilla, we would expect that over time as the damaged vanilla area is replanted to see a(n)

Recall Application 2, "Honeybees and the Price of Ice Cream," to answer the following questions: -According to the application, the increase in the price of ice cream is caused by:

If there is an advance in the technology used to produce a product, what is the likely effect it may have on the supply?

If we observe that the price is rising in the sugar market, it could be due to:

Judy demands more peanuts as her income increases. From this, we can conclude that, for Judy:

Figure 4.5 -Figure 4.5 illustrates the supply of guitars. An increase in the number of guitar manufacturers would most likely cause a movement from:

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