Exam 4: The Market Forces of Supply and Demand

If there is a shortage of farm laborers, we would expect

Figure 4-16 -Refer to Figure 4-16. If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by a(n)

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Most markets in the economy are highly competitive.

The law of demand states that, other things equal, an increase in

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Table 4-11 -Refer to Table 4-11. If the price were $4, a

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels represents the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Which of the following demonstrates the law of supply?

The actions of buyers and sellers naturally move markets toward equilibrium.

In a market economy, who or what determines who produces each good and how much is produced?

A decrease in demand will cause a decrease in price, which will cause a decrease in supply.

Table 4-8 -Refer to Table 4-8. Suppose Firm X and Firm Y are the only two sellers in the market. If the market price increases from $12 to $15, quantity supplied will

An increase in the number of college scholarships issued by private foundations would

Consider the market for portable air conditioners in equilibrium. When a heat wave strikes the equilibrium price

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $6 is

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose Harry, Darby, and Jake are the only demanders of sandwiches. Also suppose x = 2. Then

A likely example of complementary goods for most people would be