Exam 4: The Market Forces of Supply and Demand.

When the market price is below the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

A shortage exists in a market if

When the market price is above the equilibrium price,the quantity of the good demanded exceeds the quantity supplied.

The belief that tobacco is a "gateway drug" is consistent with

A dress manufacturer recently has come to expect higher prices for dresses in the near future.We would expect

In a market economy,prices are the signals that guide the allocation of scarce resources.

The two words economists use most often are

Table 4-7 -Refer to Table 4-7.The equilibrium price and quantity,respectively,are

Who gets scarce resources in a market economy?

Which of the following is not an expression for the sum of all the individual demand curves for a product?

The quantity supplied of a good is the amount that

Which of the following would most likely serve as an example of a monopoly?

Which of the following demonstrates the law of supply?

Equilibrium price must decrease when demand

A decrease in the price of a good would

Which of the following events must cause equilibrium price to rise?

If suppliers expect the price of their product to fall in the future,then they will

Figure 4-3 -Refer to Figure 4-3.If these are the only two consumers in the market,then the market quantity demanded at a price of $6 is

In a market economy,supply and demand are important because they

A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.