Exam 4: Demand,supply,and Market Equilibrium

Suppose that steak is a normal good.When income decreases,the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________.

Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes.As a result of the study,we could predict that the demand for orange juice will ________ and the equilibrium price will ________.

What is the "law of demand"?

Lettuce and spinach are substitute goods.All else equal,if a spinach beetle destroys half of the nation's spinach crop,we predict that the equilibrium price of lettuce will ________ and the equilibrium price of spinach will ________.

Suppose that the quantity of pizza supplied exceeds the quantity of pizza demanded.We would expect that

The market demand curve shows the relationship between the price and the quantity demanded by all consumers,everything else being equal.

Suppose that the equilibrium rent for apartments in San Francisco is $1,200 per month.If the City of San Francisco legislates that apartment owners cannot charge rent higher than $1,900,then the apartment market in San Francisco will experience

When the price of a product decreases,the demand for a substitute product

If incomes increase and Honda Civics are considered normal goods,then

The price of peaches has fallen dramatically.Which of the following is likely to happen?

If the number of banana producers increases,

An inferior good is defined as a good for which demand decreases when

Suppose that consumption of oat bran is found to reduce cholesterol and improve health.The result is that:

A minimum supply price is defined as

Two goods are complements if

When a consumer's income increases,that consumer tends to buy more ________.

If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

If the cost of producing a product goes down,this will cause the equilibrium price of the product to go down and the equilibrium quantity of the product to go up.

Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s). -According to the Application,when the Canadian government lowered the price of cigarettes by lowering the tax rates,the response of the consumer was

Additional factors beyond supply and consumer purchasing desire can affect demand.