Exam 4: Bringing Supply and Demand Together

Ceteris paribus,if the market supply of a product increases,what will happen to the equilibrium quantity and price of the product?

TABLE 4-2 -Refer to Table 4-2.Suppose that D₁ and S₂ are the demand and supply schedules for Product A.What is the result if the government imposes a price floor of $10?

TABLE 4-5 -Refer to Table 4-5.What is the equilibrium price?

Starting from an initial equilibrium price,a surplus at that price can be created either by an increase in supply or a decrease in demand.

On April 1,2009,in the middle of a recession,the Government of Ontario increased the provincial minimum wage from $8.75 to $9.50.What would the likely effect of this policy be?

TABLE 4-5 -Refer to Table 4-5.At $10,what is occurring in the market for compact discs?

If in one period the supply curve is located vertically above its position in an earlier period,what is this an example of?

Hamburgers and fries are viewed by consumers to be complements.If the price of hamburgers falls,what will happen in the market for fries?

Which of the following events will cause the supply curve of books (which are produced using paper made from trees)to shift to the left?

If the Canadian Auto Workers union obtains a substantial wage increase for its workers,the price of automobiles will rise.What kind of shift can this price increase be attributed to?

TABLE 4-4 -Refer to Table 4-4.If the government intervenes in the market for milk and sets a price ceiling of $0.90 per litre,what will be the result?

TABLE 4-2 -Refer to Table 4-2.Suppose the supply schedule for Good A changes from S₁ to S₂ because the price of Good B increases.Based on this,what can we conclude?

FIGURE 4-3 -Refer to Figure 4-3.Starting with initial curves D₀ and S₀,which movement is consistent with a decrease in the price of cotton (a substitute)?

TABLE 4-2 -Refer to Table 4-2.Suppose that D₁ and S₂ are the demand and supply schedules for Product A.What will result if the government imposes a price ceiling of $4?

FIGURE 4-3 -Refer to Figure 4-3.Starting with initial curves D₀ and S₀,which movement is consistent with technological improvements in wool mills?

You notice that the price of apple juice at your local grocery store has increased.Which of the following is NOT a possible explanation for the rise in the price of apple juice?

TABLE 4-2 -Refer to Table 4-2.Suppose that D₁ and S₂ are the demand and supply schedules for Product A.What is the result if the government imposes a price floor of $12?

If a shortage currently exists in the market for strawberries,which of the following statements is most accurate?

Pork from pigs can be used to produce bacon or sausage,but NOT both.If the price of bacon rises for some reason (ceteris paribus),which of the following will result?

Wool and cotton can both be used to manufacture clothing in the garment industry.Suppose that bad weather destroys cotton crops at the same time that the price of wool increases significantly.What is likely to be the impact on the market for cotton?