Exam 4: The Market Forces of Supply and Demand

If a good is normal, then an increase in income will result in a(n)

A decrease in the price of pizza will shift the supply curve for pizza to the left.

A market's equilibrium is the point at which the supply and demand curves intersect.

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

Cocoa and marshmallows are complements, so a decrease in the price of cocoa will cause an increase in the demand for marshmallows.

Figure 4-9 Panel (a) Panel (b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel (a), the arrows are consistent with which of the following events?

If the supply of a product increases, then we would expect equilibrium price

A decrease in demand shifts the demand curve to the left.

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then the market quantity demanded at a price of $2 is

A very hot summer in Atlanta will cause

A decrease in supply shifts the supply curve to the left.

Figure 4-18 -Refer to Figure 4-18. At a price of $35, there would be

Economists normally

In markets, prices move toward equilibrium because of

What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future?

Equilibrium quantity must decrease when demand

When the price of a good or service changes,

Which of the following would not shift the supply curve for mp3 players?

Figure 4-22 -Refer to Figure 4-22. At a price of $8, there is a