Exam 4: Demand, Supply, and Market Equilibrium

Figure 4.7 -If demand decreases and supply increases in Figure 4.7, then the equilibrium:

If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that:

A decrease in the cost of labor or some other input will make the production of a product less costly and more profitable at a given price, so producers will supply more of it. This is an example of _______.

If the price of hotdogs are expected to decrease in the future, then:

The purpose of advertising products to consumers is to

Assume that butter and margarine are substitutes. When the price of butter increases:

The market equilibrium price and quantity can be affected if:

A decrease in demand for coffee can be caused by:

Suppose that consumers expect the price of a product to decrease in the future. The result is that:

If incomes increase and hotdogs are inferior goods, then:

Suppose that the price of fertilizer, an input in the production of corn, rises. We would predict that the equilibrium quantity of corn will _______ and the equilibrium price of corn will _______ .

On the "supply side" of a market, producers indicate to consumers what they are willing to sell, in what quantity, and at what price.

Peaches and cream are complements. When the price of peaches falls and the price of raw milk (used to make cream) rises:

Use the supply and demand model to explain why it is difficult to find an on- campus parking space during peak mid- day times, although it is much easier to find a parking space during less popular evening hours.

_______ occurs in a market when consumers are willing to buy more than producers are willing to sell, or can supply

A change in the quantity demanded of a product cannot be the result of a change in:

Suppose that ramen noodles are an inferior good. When income increases, the equilibrium quantity of ramen noodles will _______ and the equilibrium price of ramen noodles will _______ .

A surplus occurs when producers are willing to sell more than consumers are willing to buy. This is called an _______.

The law of demand can be defined as:

Suppose that ramen noodles are an inferior good. When income decreases, the equilibrium quantity of ramen noodles will _______ and the equilibrium price of ramen noodles will _______.