Exam 4: Demand, Supply, and Market Equilibrium

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

Why is the market supply curve positively sloped?

The quantity of a product that consumers are willing and able to buy at a given price is called the

Figure 4.4 -Figure 4.4 illustrates the demand for guitars. An increase in the demand for guitars is represented by the movement from:

Recall Application 1, "Hurricane Katrina and the Baton Rouge Housing Prices," to answer the following questions: -If the government mandated that the average price of houses in Baton Rouge stay at $136,000 after Hurricane Katrina, we would expect that the housing market in Baton Rouge would experience:

If the population increases, what will this do for the market demand for most products?

Bananas and apples are substitutes. When the price of bananas rises and a technological advance in apple production occurs at the same time:

Suppose that the equilibrium rent for apartments in San Francisco is $1200 per month. If the City of San Francisco legislates that apartment owners cannot charge rent higher than $1900, then the apartment market in San Francisco will experience:

Recall Application 1, "Hurricane Katrina and the Baton Rouge Housing Prices," to answer the following questions: -The change in the housing prices in Baton Rouge caused by Hurricane Katrina in 2005 can be illustrated as an increase in demand because:

Decreases in the demand for products can be caused by which of the following?

Figure 4.4 -Figure 4.4 illustrates the demand for guitars. An increase in price of guitars would bring about a movement from:

Figure 4.5 -Figure 4.5 illustrates the supply of guitars. A decrease in the supply of guitars is represented by a movement from:

Suppose that in 2006, 12 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?

Assume that compact discs and compact disc players are complements. When the price of compact disc players decreases:

Suppose that the price for fully electric vehicle made by Toyota increases. The quantity of fully electric cars sold in the market will:

Suppose that there are only three consumers of a product. At a price of $3 per unit, the first consumer would buy 6 units of the product, the second consumer would buy 5 units, and the third consumer would buy 7 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $3 would be:

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

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, what is the market quantity demanded at a price of $10?

Recall Application 2, "Honeybees and the Price of Ice Cream," to answer the following questions: -Using supply and demand analysis, if the "colony collapse disorder (CCD)" of honey bees caused a leftward shift of the supply curve for ice cream, then which of the following must be true?

Bananas and apples are substitutes. When the price of bananas rises, the equilibrium quantity of apples will _______ and the equilibrium price of apples will _______.