Exam 4: Demand, Supply, and Market Equilibrium

The market demand curve is:

When a consumer's income decreases, the consumer:

Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price above $5 per unit:

Typically, a demand curve will represent what relationship?

Suppose that a market for a product is in equilibrium at a price of $5 per unit. At any price below $5 per unit:

In considering the relationships between price and quantity demanded, certeris paribus means economists assume that:

If the price of crude oil (an input to the production of gasoline) increases, then we will expect to see:

When a supply curve is drawn, which of the following is not held constant?

Recall Application 3, "The Supply and Demand for Cruise Ship Berths," to answer the following questions: -Based on the application, an increase in the supply of cruise ships (all else equal) would cause the equilibrium price of cruise ship berths to:

Recall Application 1, "Hurricane Katrina and the Baton Rouge Housing Prices," to answer the following questions: -Why did Hurricane Katrina affect the price of housing in Baton Rouge?

Suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza. We would expect that:

Suppose that the current price in a market for Pizza is $9. At that price, the quantity demanded is 519 and the quantity supplied is 400. At the current price, the market is experiencing:

Define a "normal good" as it relates to markets.

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

The model of supply and demand is the most important tool of economic analysis.

Figure 4.5 -Figure 4.5 illustrates the supply of guitars. A technological advancement that makes guitars cheaper to produce would most likely cause a movement from:

The market demand curve shows the relationship between the price and the quantity demanded by all consumers, everything else being equal.

If the government imposes a price floor that is below the equilibrium price, then the market will experience:

Excess demand in an unregulated market will cause the price of a product to fall.

At a price of $1000, Dell Computer Co. is willing 20 laptops and Compaq is willing to sell 40 laptops. IBM will only sell laptops if the price is $1300 or higher. At $1000, the market supply for laptops is: