Exam 4: The Market Forces of Supply and Demand

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a decrease in the price of the grain fed to turkeys would cause a move from

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for chocolate chip cookies of an improved high-speed mixer that allows bakers to produce cookies in less time?

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

An example of a perfectly competitive market would be the market for

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Assume Leo buys coffee beans in a competitive market. It follows that

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db could be caused by

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' is called a(n)

Which of the following does not affect an individual's demand curve?

A decrease in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

Figure 4-6 -Refer to Figure 4-6. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. We could illustrate the tax as producing a movement from

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for paper napkins as a result of a "Go Green" advertising campaign encouraging people to use cloth napkins?

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for coffee. Suppose the price of tea, a substitute good, increases. Which of the following changes would occur?

When a surplus exists in a market, sellers

Table 4-12 A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows: -Refer to Table 4-12. If both members and non-members are allowed to purchase tickets to this year's celebrity golf tournament and the country club sets the ticket price at $20, then there will be

Figure 4-21 -Refer to Figure 4-21. What is the equilibrium quantity in this market?

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

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 $15 is