Exam 4: The Market Forces of Supply and Demand.

If the demand for movies increases at the same time as the movie industry adopts labor-saving technology for producing movies,the equilibrium price for movies will increase,but the effect on the equilibrium quantity of movies is ambiguous.

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk,which is used to make lattés,and scientists discovered that lattés cause heart attacks?

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded.This implies that X and Y are

Figure 4-15 -Refer to Figure 4-15.At what price would there be an excess supply of 200 units of the good?

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

Which of the following might cause the supply curve for an inferior good to shift to the right?

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

Today,producers changed their expectations about the future.This change

Suppose that Amanda receives a pay increase.We would expect

Figure 4-21 -Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees?

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches and that the market demand violates the law of demand.Then,in the table,the value of x must be

The law of supply states that,other things equal,when the price of a good rises,the quantity supplied of the good falls.

The law of demand is true for most goods in the economy.

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

Figure 4-14 -Refer to Figure 4-14.At a price of

The line that relates the price of a good and the quantity demanded of that good is called the demand

It is not possible for demand and supply to shift at the same time.

When we move along a given supply curve,

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Suppose x = 1.Then the slope of the market demand curve is

Table 4-9 The demand schedule below pertains to sandwiches demanded per week. -Refer to Table 4-9.Suppose Harry,Darby,and Jake are the only demanders of sandwiches.Also suppose the following: • x = 2. • The current price of a sandwich is $5.00. • The market quantity supplied of sandwiches is 10. • The law of supply applies to the supply of sandwiches. Then there is a