Exam 4: Demand, Supply, and Markets

If both demand and supply increases in a market that is initially in equilibrium,price will:

Consider a market for coffee that is initially in equilibrium.If tea harvest is bad in a particular year,then identify the most likely impact on the equilibrium price and quantity of coffee.

Studies show that the demand curve for peas has shifted over the years.Which of the following explanations would you reject first?

Markets tend to increase the costs of time and information required for exchange.

Which of the following will lead to an increase in quantity supplied of a given good?

Consider the market for wheat that is initially in equilibrium.In which of the following situations will the equilibrium price of wheat increase and the change in the equilibrium quantity of wheat be indeterminate?​

If butter and margarine are substitute goods,an increase in the price of butter is most likely to:

Which of the following is likely to change the quantity supplied of wheat?

Which of the following is most likely to be a normal good?

The table given below shows the quantity supplied and the quantity demanded for a good at different prices.If the market price of the good is $1.20,there will be a _____. $\begin{array}{l}\text { Table } 4.1\\\begin{array} { | r | r | r | } \hline { \text { Price(\$) } } & { \begin{array} { l } \text { Quantity } \\\text { demanded }\end{array} } & { \begin{array} { l } \text { Quantity } \\\text { supplied }\end{array} } \\\hline 1 & 100 & 10 \\\hline 1.2 & 90 & 30 \\\hline 1.4 & 80 & 50 \\\hline 1.5 & 70 & 70 \\\hline 1.6 & 60 & 90 \\\hline\end{array}\end{array}$

Which of the following statements about a demand curve is true?

The explanation for the law of demand begins with:

Figure 4.3 shows the supply curves for baby formula.In the figure given below,which of the following changes is likely to result from an increase in the number of firms producing baby formula?

If the price of vanilla ice cream decreases,it is likely that:

Saccharin and aspartame are both low-calorie substitutes for sugar.If saccharin is found to cause cancer,then:

Which of the following would shift the supply curve of a good to the left?

In which of the following situations is the change in the equilibrium price of a good indeterminate?

Two events occur simultaneously in the market for automobiles: (1)an improvement in assembly line technology and (2)a recession in the economy that decreases consumers' income.Which of the following can be predicted about this market with certainty?

The table given below shows the quantity supplied and the quantity demanded for a good at different prices.If the price of the good described in the table given below is $1.60,then there is a: $\begin{array}{l}\text { Table } 4.1\\\begin{array} { | r | r | r | } \hline { \text { Price(\$) } } & { \begin{array} { l } \text { Quantity } \\\text { demanded }\end{array} } & { \begin{array} { l } \text { Quantity } \\\text { supplied }\end{array} } \\\hline 1 & 100 & 10 \\\hline 1.2 & 90 & 30 \\\hline 1.4 & 80 & 50 \\\hline 1.5 & 70 & 70 \\\hline 1.6 & 60 & 90 \\\hline\end{array}\end{array}$

Sugar and honey are viewed as substitutes for each other in many cooking applications.If the price of sugar rises,we would expect: