Exam 4: The Market Forces of Supply and Demand

It is not possible for demand and supply to shift at the same time.

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, if the price were $10:

In a market economy, prices determine who produces each good and how much is produced.

A competitive market is one in which sellers and buyers can choose the price at which they wish to buy or sell goods.

Given the following supply schedule, graph Lee's supply of croissants. $\begin{array}{|c|c|}\hline \text { Price of croissants }(\$) & \text { Quantity of croissants supplied } \\\hline 6.00 & 2400 \\\hline 5.00 & 2000 \\\hline 4.00 & 1600 \\\hline 3.00 & 1200 \\\hline 2.00 & 800 \\\hline 1.00 & 400 \\\hline\end{array}$

If a tupperware company discovers that the price of plastic has risen by 10%, the company will decide to supply more tupperware to the market.

Holding all else constant, a decrease in the price of mobile phones will:

Table 4-1 A market is represented by the table below: Quantities demanded: Price of the good John Lee Amy Jean \ 0.50 36 25 12 5 1.00 30 22 8 4 2.00 25 20 3 3 3.00 20 19 1 2 4.00 10 18 0 1 5.00 5 17 0 0 -Refer to Table 4-1.If the price of the good is $4, the quantity demanded in this market would be:

Whenever the price of a good changes in a competitive market it is NOT a result of:

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

What must happen to cause a movement along the demand curve? How does this differ from what causes a shift in the demand curve?

If there is a shift of the demand curve, this is known as:

A shift in the supply curve is called:

A demand curve:

Graph 4-6 -Refer to the Graph 4-6.If the price were $10 there would be a:

Surpluses drive price up, whereas shortages drive price down.

If there is an improvement in the technology of producing a product, the supply curve for that product will shift to the left.

Graph 4-6 -Refer to the Graph 4-6.If the price were $25:

At the equilibrium price:

Which of the following statements is correct?