Exam 4: The Market Forces of Supply and Demand

If the supply curve shifts left but the demand for a good stays the same, it is called:

The news that oat bran helped reduce serum cholesterol, caused people to prefer to eat more oatmeal.This change in preference would be expected to cause the demand curve for oats to shift to the right, and equilibrium price and quantity of oats to increase.What effects might be felt in other markets?

One reason why government taxes on cigarettes imposed on sellers reduces smoking is that:

Graph 4-5 -Refer to Graph 4-5.According to the graph, equilibrium price and quantity are:

A demand schedule is a table showing the relationship between:

When we move up or down a given demand curve:

In a competitive market, suppliers have little reason to charge different prices because:

Graph 4-5 -Refer to Graph 4-5.According to the graph, at the equilibrium price:

Table 4-2 $\begin{array}{|c|c|c|}\hline \text { Price }(\$) & \text { Quantity demanded } & \text { Quantity supplied } \\\hline 25 & 1 & 25 \\\hline 20 & 2 & 20 \\\hline 15 & 3 & 15 \\\hline 10 & 4 & 10 \\\hline 5 & 5 & 5 \\\hline\end{array}$ -Refer to Table 4-2.In the table shown, suppose the current price was $25.This would mean:

Graph 4-6 -Refer to the Graph 4-6.If price were $25, quantity demanded would be:

A shortage is:

The market demand is the average of all of the individual demands for a particular good or service.

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

In a competitive market, buyers cannot influence the price because:

New Zealand exports possum skins that are used to make leather products.What determinants of demand would be influenced by the following events? a.New Zealand's possum skin industry is recognised as having conservation benefits as possums are a feral pest in New Zealand. b.incomes in China grow rapidly c.the price of calf leather becomes more expensive