Exam 3: Demand, Supply, and Market Equilibrium

Currently the federal U.S. government aims to make college more affordable by offering federal student loans at low interest rates. Discuss the effect this has had on tuition costs.

There will be a surplus of a product when

Define supply.

List five determinants of market demand that could cause demand to decrease.

"In the corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand." In which of these two statements are the terms demand and supply being used correctly?

Consumers buy more of normal goods as their incomes rise.

What is a price floor, and what are its economic effects?

In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate.

Blu-ray players and Blu-ray discs are

Differentiate between a normal good and an inferior good.

Refer to the diagram. A surplus of 160 units would be encountered if the price was

How is a preset price similar to a government-imposed price ceiling or a price floor? How is a preset price different from a government-imposed price ceiling or price floor?

The presence of ticket scalpers in popular events like concerts will hurt consumers who buy from the scalpers.

In cases where the supply curve is vertical, any change in demand will cause only a change in price but no change in quantity.

Refer to the diagram. Rent controls are best illustrated by

Assume the demand curve for product X shifts to the right. This might be caused by

Refer to the table. If demand is represented by columns (3)and (1)and supply is represented by columns (3)and (4), equilibrium price and quantity will be

Today, economists classify market equilibrium as a behavior demonstrated by an entire system that is not found in any of its constituent parts; this is known as an emergent property.

An increase in the price of a product will reduce the amount of it purchased because

In 2018, the price of oil increased, which in turn contributed to a rise in the price of natural gas. This can best be explained by saying that oil and natural gas are