Exam 4: Supply and Demand: an Initial Look

Normally an increase in the supply of a good will cause

The law of increasing relative costs, depicted by the concavity of the production opportunities frontier, is most closely related to the

A shift of the demand curve for a good occurs whenever new technologies make inputs used in producing that good available at lower prices.

Professional baseball teams in the United States use only wooden bats.If aluminum bats were permitted, the likely result would be a

Cost-reducing technological advancements allow suppliers to earn more profits but have no noticeable effect on the supply curve.

Figure 4-21 -A shortage will tend to occur at which price in Figure 4-21?

Figure 4-16 -Assume that Figure 4-16 shows the supply of new houses.An improvement in the technology for building houses will shift supply from

How much the quantity of a good traded changes after a shift of the supply curve depends on

Figure 4-15 -Recycling of newspapers has been undermined by its success.The supply of old papers, gathered diligently by those concerned with the environment, has increased dramatically, as has the number of firms that convert the material into recycled newsprint.The quantity demanded has remained relatively stable despite falling prices because newspapers consider recycled newsprint an inferior substitute for regular newsprint.Consequently, the price of recycled newsprint has fallen below the cost of production; recycling firms are going out of business; mountains of old newspapers are left behind.Which graph in Figure 4-15 best illustrates this situation?

A supply curve can be thought of as

The price for labor is the wage rate.What happens to the supply of labor if wages increase?

George Washington's troops at Valley Forge were almost destroyed by price controls.

"Demand" is a series of quantities demanded, one for each person in the market.

Figure 4-6 -Grapes can be used for wine or for raisins.Which graph in Figure 4-6 best depicts the effects on the U.S.raisin market of a decrease in purchases of domestic wines?

Figure 4-16 -Assume that Figure 4-16 shows the supply of steak.An increase in the price of pork will change the supply from

Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption.Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer.Considering the market for alcohol, an economist would predict a movement

Along a supply curve,

Since rent controls have been in effect in New York City, apartments have been more plentiful.

The laws of supply and demand did not apply to elephant tusks.

In an attempt to forecast enrollment, a major university hired an economist to give a "head count." One variable which she would probably emphasize more than any other in trying to forecast this is