Exam 4: Demand, Supply, and Markets.

Table 4.1 + Table 4.1 Cards Don Jon Ron \ 2 3 2 1 \ 1.50 4 5 3 -Refer to the demand schedule in Table 4.1. There are three consumers in the market for playing cards: Don, Jon, and Ron. At a price of $2 per pack, what is the total quantity demanded for playing cards?

The market for chewing gum is in equilibrium with a current price of 50 cents per pack and a quantity of 100,000 packs per day. Which of the following events is most likely to result in a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000 packs, the supply curve for chewing gums remaining unchanged?

If the demographics of consumers in the market for a good change, demand will ______

The law of demand implies that _____

_____ is the relation between the price of a good and the quantity all producers are willing and able to sell per period, other things constant.

Exhibit 4.2 -Refer to Exhibit 4.2 of the demand curves for a good. A shift from the demand curve D' to the demand curve D would be caused by a(n) _____

The income effect of a decrease in the price of legal services, a normal good, is a(n) _____

Other things constant, which of these is likely to decrease the supply of leather jackets?

Exhibit 4.6 -The following Exhibit shows the market for a good. D' and S are the demand curve and the supply curve, respectively. Which of the following is most likely to shift the demand curve from D' to D?

Rent controls generally provide the tenants the most efficient housing choice in the long run and maximize economic welfare.

Income measured by the goods and services it can buy is known as _____

Other things constant, which of the following is likely to increase the supply of wheat?

Suppose the market for cookies is initially in equilibrium. For a given upward-sloping supply curve, other things being equal, the equilibrium price and equilibrium quantity of cookies is most likely to decline when _____

What does a supply schedule show?

Table 4.1 + Table 4.1 Cards Don Jon Ron \ 2 3 2 1 \ 1.50 4 5 3 -Refer to the demand schedule in Table 4.1. There are three consumers in the market for playing cards: Don, Jon, and Ron. At a price of $2 per pack, the quantities demanded by each are 3 packs, 2 packs, and 1 pack, respectively. At a price of $1.50 per pack, the quantities demanded by each are 4 packs, 5 packs, and 3 packs, respectively. Which of the following is true?

According to the law of demand, as the price of a good rises, _____

Which of the following is most likely to cause the demand for ice cream, a normal good, to decrease?

What does a supply curve show?

According to the law of supply, the quantity supplied is _____ related to price, other things constant.

Suppose a market is in equilibrium. If a price floor is set in this market below the equilibrium price, it is likely that _____