Exam 4: The Market Forces of Supply and Demand

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Regarding Harry and Darby, for whom are sandwiches a normal good?

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. If all four suppliers operate in this market, what is the market quantity supplied when the price is $6.00 per case?

In a competitive market, there are so few buyers and so few sellers that each has a significant impact on the market price.

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market and the function for market demand is Q^D=1000-100P, where Q^D is the quantity demanded and P is the price, what is the equilibrium quantity?

Which of the following is not a characteristic of a perfectly competitive market?

The law of supply and demand asserts that

Who gets scarce resources in a market economy?

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults, assuming that Ramen noodles are an inferior good?

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

Table 4-13 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-13. Suppose x = 1. Then it must be true that

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

Suppose John and Wayne are the only two demanders of cowboy movies. Each month, John buys six cowboy movies when the price is $10 each, and he buys four cowboy movies when the price is $15 each. Each month, Wayne buys four cowboy movies when the price is $10 each, and he buys two cowboy movies when the price is $15 each. Which of the following points is on the market demand curve?

A supply curve slopes upward because

Figure 4-7 -Refer to Figure 4-7. The shift from Da to Db is called

Two goods are complements when a decrease in the price of one good

If something happens to alter the quantity demanded at any given price, then

Today, people changed their expectations about the future. This change

The law of demand states that, other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.

The dictionary defines equilibrium as a situation in which forces

Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to