Exam 4: Demand,supply,and Market Equilibrium

Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s). -Recall the Application.Using supply and demand analysis,if the harmattan caused a decrease in supply for cocoa,then which of the following must be true?

Which of the following is the most likely complement for hamburgers?

The effect of income on the demand for normal goods is such that

Figure 4.7 -If supply increases in Figure 4.7,then the equilibrium

Figure 4.5 -Figure 4.5 illustrates the supply of guitars.A technological advancement that makes guitars cheaper to produce would most likely cause a movement from

What does an increase in population do to the demand for a product?

Peaches and cream are complements.When the price of peaches falls,the equilibrium quantity of cream will ________ and the equilibrium price of cream will ________.

Bananas and apples are substitutes.When the price of bananas falls and a technological advancement in apple production occurs at the same time,

Which of the following is the least likely complement for hamburgers?

People will buy more of a normal good when their income decreases.

What happens if the price of a product is below the equilibrium price?

A surplus occurs when producers are willing to sell more than consumers are willing to buy.This is called a(n)________.

Figure 4.1 -Refer to Figure 4.1 that shows Mary and Tom's individual demand curves for meals per week at Fratelli's Italian Restaurant.Assuming Mary and Tom are the only consumers in the market,if the market quantity demanded is 6,the price must be

The market demand curve is

Two goods are substitutes if an increase in the price of one good leads to an increase in demand for the other.

Suppose that the price for fully electric cars made by Toyota increases.The quantity of fully electric cars supplied in the market will

Suppose that in October the price of a cup of cafe latte was $1.50 and 400 lattes were consumed.In November the price of a latte was $2.00 and 600 lattes were consumed.What might have caused this change?

When a supply curve is drawn,which of the following is NOT held constant?

Which of the following is most likely to be considered a substitute for pizza?

Suppose that a product benefits from a successful advertising campaign.The result is that