Exam 4: Bringing Supply and Demand Together

Technological progress increases the efficiency of mass producing HDTV-capable television sets. At the same time, more cable and television networks begin broadcasting in HDTV format, increasing the appeal of HDTV-capable television sets. On the basis of this information, what can be said about conditions in the HDTV market?

If an effective rent ceiling is implemented, what would happen in the market for apartment rentals?

Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $1.50 per loaf, what will be the result?

On April 1, 2009, in the middle of a recession, the Government of Ontario increased the provincial minimum wage from $8.75 to $9.50. What would the likely effect of this policy be?

In an effort to fight inflation of 18 percent per year in Venezuela, President Hugo Chávez has instituted price controls on most basic foodstuffs. Which of the following is the likely outcome of these price controls?

TABLE 4-5 -Refer to Table 4-5. At $10, what is occurring in the market for compact discs?

TABLE 4-3 -Refer to Table 4-3. What is the equilibrium price of gasoline?

What occurs whenever a price ceiling is imposed in a market?

Which of the following events will cause the quantity of newspapers sold to decline?

A safety report is released that contends that sport utility vehicles are prone to roll over during crashes. At the same time, the price of steel (used to produce motor vehicles), increases. What is the net effect of these two incidents on the market for sport utility vehicles?

Suppose Canada steps up efforts to combat drug trafficking and, with the aid of the U.S. border patrol, intercepts a significant percentage of cocaine shipments. What will be the impact of this on the market for cocaine in Montréal?

Whenever there is a shortage at a particular price, what will the quantity sold at that price be equal to?

FIGURE 4-2 -Refer to Figure 4-2. Which movement is consistent with a decrease in demand?

TABLE 4-1 -Refer to Table 4-1. At a price of $10, what is the result in the market?

If the price of pagers rose after simultaneous decreases in supply and demand for pager services, what could we conclude?

The diagram below represents the market for butter. FIGURE 4-1 -Refer to Figure 4-1. If a price ceiling of $4 is imposed, how many units of butter will be sold?

If the demand for apples increases at the same time the supply of apples falls, the price of apples will tend to fall.

In September 2005, Hurricane Katrina, caused flood damage to many homes in Louisiana. Shortly thereafter, the price of plywood rose significantly. What do these events suggest?

Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?

You notice that the price of apple juice at your local grocery store has increased. Which of the following is NOT a possible explanation for the rise in the price of apple juice?