Exam 4: Demand, Supply, and Equilibrium

Suppose Apple raises the cost of downloading a song from iTunes from $0.99 per song to $1.49 per song.This price increase will cause a(n)________.

In 2007,an unseasonably dry spring led to a sharp decline in the quantity harvested of black morels,a wild mushroom found throughout the upper Midwest.Due to the scant harvest,the price of black morels rose from $9 per pound to nearly $45 per pound.In 2008,slightly above-normal rainfall levels led to a large black morel harvest.Assuming that the demand for black morels did not change from 2007 to 2008,we would expect the 2008 black morel supply to ________ and the equilibrium price of black morels to ________.

Which of the following statements correctly describes perfectly competitive market equilibrium?

Which of the following is not an example of a market?

In a perfectly competitive market,situations of surplus or shortage of a good ________.