Exam 4: The Market Forces of Supply and Demand

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

If something happens to alter the quantity demanded at any given price, then the demand curve shifts.

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

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

Table 4-9 The following table shows the supply and demand schedules in a market. $\begin{array} { | l | l | l | } \hline \text { Price (\$) } & \begin{array} { l } \text { Quantity } \\\text { Demanded } \\\text { (units) }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Supplied } \\\text { (units) }\end{array} \\\hline 0 & 50 & 0 \\\hline 2 & 40 & 15 \\\hline 4 & 30 & 30 \\\hline 6 & 20 & 45 \\\hline 8 & 10 & 60 \\\hline 10 & 0 & 75 \\\hline\end{array}$ -Refer to Table 4-9. What is the equilibrium price in this market?

Suppose there are six bait and tackle shops that sell worms in a lakeside resort town in Minnesota. If we add the respective quantities that each shop would produce and sell at each of the six bait and tackle shops when the price of worms is $2 per bucket, $2.50 per bucket, and $3 per bucket, and so forth, we have found the

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?

Studies show that lower cigarette prices are associated with greater use of marijuana; therefore, tobacco and marijuana are

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

Which of the following is not an example of a market?

Table 4-7 The table below shows the quantities demanded of milk per month by four families at various prices. Price of Gallon of Milk The Berman Family The Johnson Family The Harris Family The Patel Family \ 3.00 9 15 12 14 \ 4.00 8 12 10 10 \ 5.00 7 9 8 6 \ 6.00 6 6 6 2 -Refer to Table 4-7. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

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

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?

Price will rise to eliminate a shortage.

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

Figure 4-1 ​ -Refer to Figure 4-1. The movement from point A to point B on the graph is caused by

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

Advances in production technology typically reduce firms' costs, which increases the quantity supplied at each price.

Sellers respond to a surplus by cutting their prices.