Exam 4: The Market Forces of Supply and Demand

Fill in the accompanying table, showing whether equilibrium price and equilibrium quantity go up, down or stay the same.

A reduction in an input price will cause a change in quantity supplied, but not a change in supply.

For economists, what are people's tastes and demand?

Market demand is given as Qd = 75 - P. Market supply is given as Qs = 3P + 15. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Who is it that ultimately determines the demand for a product or service?

What will happen to the equilibrium price and quantity of traditional camera film if traditional cameras become less expensive, digital cameras become more expensive, the cost of the resources needed to manufacture traditional film increases, and fewer firms decide to manufacture traditional film?

Ryan tells you that he thinks the price of potato chips, his favourite food, will decrease in the near future. How will he probably respond?

Which of the following would be most likely to decrease the price of a new house?

Figure 4-7 -What do most studies indicate that tobacco and marijuana tend to be?

Figure 4-2 -Refer to Figure 4-2. What happens at the equilibrium price?

What is an example of an inferior good?

What will happen in the rice market if buyers are expecting higher prices in the near future?

Market demand is given as Qd = 140 - 5P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

If Francis receives an increase in his pay, what would we expect?

Table 4-2 -Refer to Table 4-2. If the price were $2, what would happen?

Figure 4-5 -Refer to Figure 4-5. Which of the four graphs represents the market for cars after new technology was installed on assembly lines?

Market demand is given as Qd = 120 - P. Market supply is given as Qs = 4P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

If buyers and/or sellers are price takers, what can they do individually?

What happens at the equilibrium price?

In a market, the price of any good adjusts until quantity demanded equals quantity supplied.