Exam 3: Markets, Demand and Supply, and the Price System

If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?

The development of a low-cost synthetic fuel is expected to cause a decrease in the price of oil.

In a market where the price is restricted by price floors or price ceilings,

Which of the following will have no impact on the demand for ice cream?

The market demand curve is derived by:

The table given below reports the quantity demanded and supplied of a commodity in a market at different price levels. Table 3.4 $\begin{array}{|ccc|}\hline \text { Price (\$) } & \text { Quantity Demanded } & \text { Quantity Supplied } \\1 & 1,500 & 500 \\2 & 1,000 & 700 \\3 & 900 & 900 \\4 & 600 & 1,100 \\5 & 400 & 1,300\\\hline\end{array}$ -The output level that occurs in any market that is in equilibrium:

A rent control law, where tenants pay below-market rents, is a market restriction that may induce a decrease in the supply of rented apartments.

The relationship between prices and the corresponding quantities supplied is shown in a:

Margarine and butter can both be used as a spread on toast. This means that they are:

Barter requires a double coincidence of wants. This means that:

The change in the quantity demanded of any good is always caused by:

Other things remaining unchanged, which of the following is a determinant of the quantity supplied of a good?

The amount of a product that people are willing and able to purchase at a specific price is referred to as the:

The market demand curve is derived by summing individual demand curves horizontally.

In a country that depends on the government to decide the allocation of resources,

According to the law of supply, if the price of calculators decrease, the supply of calculators will decrease, everything else held constant.

The table given below reports the quantity demanded and supplied of a commodity in a market at different price levels. Table 3.4 $\begin{array}{|ccc|}\hline \text { Price (\$) } & \text { Quantity Demanded } & \text { Quantity Supplied } \\1 & 1,500 & 500 \\2 & 1,000 & 700 \\3 & 900 & 900 \\4 & 600 & 1,100 \\5 & 400 & 1,300\\\hline\end{array}$ -Refer to Table 3.4. In the market represented by this table, at equilibrium:

A price floor is the minimum price that consumers have to pay.

Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?

Empirical evidence suggests that more digital cameras are being sold today than one year ago, and the selling price has decreased. The probable reason for this could have been an increase in supply.