Exam 4: Demand, Supply, and Market Equilibrium

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $50, we would expect the price of blue jeans to_______ , the quantity demanded of blue jeans to _______, and the quantity supplied of blue jeans to _______.

A table that shows the price of a product and the quantity of that product that a seller is willing to sell is called the:

Draw a graph to illustrate the effect of an increase in demand on the price and quantity in a market.

The law of demand states that the quantity demanded of a product increases as:

When Mary's income increases, she purchases fewer hamburgers. We can conclude that for Mary, hamburger is a(n) _______ good.

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

Figure 4.4 -Figure 4.4 illustrates the demand for guitars. If people expect the price of guitars to decrease in the near future, this would most likely bring about a movement from:

The droughts in Australia resulted in an increase in demand for rice, causing an increase in the equilibrium price.

Figure 4.4 -Figure 4.4 illustrates the demand for guitars. A successful advertising campaign to sell guitars would bring about a movement from:

The price of compact discs has fallen dramatically. Which of the following is likely to happen?

If the government imposes a price ceiling that is above the equilibrium price, then the market will experience:

Figure 4.3 -Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $50, there is:

When the price of apples goes up:

Assume that chicken and beef are substitutes. When the price of beef increases:

Suppose that steak is a normal good. When income increases, the equilibrium quantity of steak will _______and the equilibrium price of steak will _______.

Suppose that people expect that the price of orange juice will rise next month. We would predict that the equilibrium quantity of orange juice will _______ and the equilibrium price of orange juice will _______ this month.

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 the affected area due to

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

Suppose that consumption of oat bran is found to reduce cholesterol and improve health. The result is that:

Suppose that in 2006, 8 million cars were purchased at $15,000 each, while in 2007, 10 million cars were purchased at $12,000 each. What might have caused this change?