Exam 4: The Market Forces of Supply and Demand

Demand for fish is higher in India than Australia because:

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Which of the following would be an example of a monopoly?

The supply curve has a negative slope.

The intersection of the demand and supply curves is a unique point termed:

A change in the cost of producing a good will cause a change in the quantity supplied of a good.

In 1989 an international trade ban was announced for ivory.If people expected the price of ivory to rise after the ban, then their demand before the ban would:

Graph 4-2 -Refer to Graph 4-2.If the demand curve shifts from D₁ to D on the graph, this means that:

Equilibrium in a market is found where the supply curve and the demand curve intersect.

Based on economic theory, anyone willing to pay the market price for a resource may have it.

Andrew is also interested in the latest discussions about which company, Airbus or Boeing, will be making more fuel-efficient planes in the future.Why does this interest him?

Equilibrium is:

Sally tells you that she thinks the price of her favourite stationery will increase in the near future.She will probably respond by:

Most markets in an economy are:

When an increase in the price of one good lowers the price of another good, the two goods are called substitutes.

Graph 4-6 -Refer to the Graph 4-6.In this market, equilibrium price and quantity would be:

If the price of a good changes, its demand curve shifts.

Ceteris paribus is a Latin phrase that literally means:

The relationship between price and quantity supplied is:

The global financial crisis was in part caused by many traders selling mortgage-based financial products all at the same time.Why might they have decided to do so?