Exam 4: Supply and Demand An Initial Look

Both demand and supply curves usually have positive slopes.

An increase in price will decrease demand.

What are the major problems that will tend to arise if there are legal limits on the movement of prices?

Figure 4-20 -Refer to Table 4-1.What is the equilibrium price in the example above?

A demand curve shows the relationship between price and quantity demanded only so long as all other things are held constant.

An individual's demand schedule

Figure 4-4 -In Figure 4-4,an increase in population will change demand from

What factors are held constant along a given demand curve for a good?

Figure 4-12 -Normally an increase in the supply of a good will cause

The price of one good produced by a multiproduct industry rises.For another good produced by that industry

American consumers decide to boycott grapes in support of the farm workers' union.Everything else being equal,the

A supply curve slopes upward because quantity supplied is higher when price is higher.

The U.S.government banned cigarette advertising on radio and television after January,1971.You would expect to find that after the ban took effect the price of magazine ads for

Figure 4-18 -In Figure 4-18,there would be a surplus of T-shirts if the price were

Figure 4-19 -Equilibrium in a market is

Price ceilings will likely

Figure 4-12 -The silverware industry has been in serious decline since the 1980s.Family dining habits are less formal so people purchase less silverware.Also,in 2006-2008,the price of silver increased from $5 to $20 per ounce.Which graph in Figure 4-12 best illustrates these developments?

Figure 4-20 -Refer to Table 4-1.At $4,what is the shortage?

A change in the income of buyers will normally change demand.

If demand increases,the equilibrium price and equilibrium quantity will both fall,everything else being equal.