Exam 4: The Market Forces of Supply and Demand

Saddle shoes are not popular right now, so very few are being produced. If saddle shoes become popular, then how will this affect the market for saddle shoes?

A group of buyers and sellers of a particular good or service is called a

Which of the following would most likely serve as an example of a monopoly?

If orange juice and apple juice are substitutes, an increase in the price of orange juice will shift the demand curve for apple juice to the right.

All goods and services are sold in perfectly competitive markets.

Assume Diana buys computers in a competitive market. It follows that

If a surplus exists in a market, then we know that the actual price is

Figure 4-2 -Refer to Figure 4-2. Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is

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 decreases from $12 to $9, quantity supplied will

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 $1 is

Figure 4-16 -Refer to Figure 4-16. The shift from S' to S in the market for chocolate cake could be caused by a(n)

If the demand for a product decreases, then we would expect equilibrium price

Figure 4-30 ​ -Refer to Figure 4-30. In this market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. Which curve(s) shift(s) and in which direction?

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

The sum of all the individual supply curves for a product is called

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Panel (d) shows which of the following?

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

The law of supply states that, other things equal, when the price of a good

Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?

New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto-workers accept lower wages, and automobile insurance becomes more expensive?