Exam 4: Supply and Demand

When quantity demanded is greater than quantity supplied, the resulting shortage causes the price to fall.

How would a decline in demand for imported commodities by the Chinese affect the market for cargo transportation to China?

The effect of higher gasoline prices is most likely to:

When the going rate is $10.00 per hour, Ann wants to babysit 6 hours each week and Pat wants to babysit 4 hours each week. If the rate goes up to $12.00, Ann and Pat both double the number of hours they are willing to babysit each week. Based on this information, a combined supply curve will pass through the points:

Which of the following would be expected to cause an increase in the supply of desktops?

According to the law of demand, an increase in the price of baseball trading cards causes:

Refer to the graphs shown. Assume the graph reflects demand in the automobile market. Which arrow best captures the impact of increased gasoline prices on the automobile market?

If cigar prices tripled while sales of cigars rose 30 percent, this would likely be due to a shift in demand.

If the price of movies on DVD rises while the price of movies purchased on demand through the Internet remains the same, the law of demand predicts that consumers will:

The use of the phrase "other things constant" in supply and demand analysis indicates that:

Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:

A change in the price of carrots will cause a movement along the demand curve for carrots and a shift in the demand for substitute vegetables.

The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of:

When the drug Vioxx was pulled from the market by pharmaceutical company Merck due to its association with heart problems, the demand for other pain medications:

Suppose that the table shown shows the demand and supply schedules for pork bellies. Which of the following statements is true? Price ( \/ lb.) Quantity demanded (lbs.) Quantity Supplied (lbs.) \ 0.10 30,000 5,000 \ 0.20 25,000 10,000 \ 0.50 20,000 20,000 \ 0.75 15,000 30,000 \ 0.95 5,000 40,000

Suppose when you are offered $8.00 per hour to work in the campus library, you choose not to work, but when you are offered $12.00 per hour, you accept a part-time position. Your behavior can best be explained by the fact that your supply of labor curve is:

If the price in a market is above its equilibrium level, there will be a:

A demand curve is downward-sloping because as the price of a good falls, demanders will substitute some other good for that good whose price has fallen.

If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the:

Honey and jam are substitute products. If the price of honey increases, the demand for: