Exam 4: The Market Forces of Supply and Demand.

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good falls,and when the price falls,the quantity demanded rises.

Table 4-4 -Refer to Table 4-4.Which supply schedules obey the law of supply?

Beef is a normal good.You observe that both the equilibrium price and quantity of beef have fallen over time.Which of the following explanations would be most consistent with this observation?

Figure 4-22 -Refer to Figure 4-22.Which of the four panels represents the market for peanut butter after a major hurricane hits the peanut-growing south?

A decrease in the price of peanut butter will increase both the equilibrium price and quantity in the market for jelly.

A likely example of complementary goods for most people would be

Figure 4-17 -Refer to Figure 4-17.In this market,equilibrium price and quantity,respectively,are

Equilibrium price must increase when demand

Which of the following changes would not shift the supply curve for a good or service?

When Mario's income decreases,he buys more pasta.For Mario,pasta is a normal good.

Figure 4-4 -Refer to Figure 4-4.Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

Figure 4-5 -Refer to Figure 4-5.Suppose that the federal government is concerned about obesity in the United States.Congress is considering two plans.One would require "junk food" producers to include warning labels on all junk food.The other would impose a tax on all products considered to be junk food.We could illustrate the tax as producing a movement from

Price will rise to eliminate a shortage.

Which of the following would cause price to decrease?

The following table contains a supply schedule for a good. If the law of supply applies to this good,then Q1 could be

Opponents of cigarette taxes often argue that tobacco and marijuana are substitutes so that high cigarette prices

Table 4-6 -Refer to Table 4-6.Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

The term price takers refers to buyers and sellers in

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up,the price of jelly fell,fewer firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

Which of the following is the least likely to be a competitive market?