Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd = 40 - 2P. Market supply is given as Qs = 2P. What would result if the market price were $13?

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

What would an early frost in the vineyards of the Okanagan Valley cause?

Market demand is given as Qd = 300 - 6P. Market supply is given as Qs = 4P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

If a company making frozen orange juice expects the price of their product to be higher next month, they will supply more to the market this month.

What impact would a higher price for batteries tend to have?

Complete the following: Two goods are complements if a decrease in the price of one good

Who or what allocates an economy's scarce resources?

What does the market supply curve show?

Figure 4-5 -Refer to Figure 4-5. Which of the four graphs represents the market for winter boots in June?

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of wood saws increased?

Recent forest fires in the western provinces are expected to cause the price of lumber to rise in the next 6 months. As a result, what can we expect to happen to the supply of lumber?

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, some buyers exit the market for oak tables, and the price of wood saws increased?

Figure 4-10 -Refer to Figure 4-10. What is the movement from point A to point B on the graph called?

What is another term for equilibrium price?

What is the side of the market that deals with the willingness and ability to produce and sell?

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the West. What would your first step be?

Market demand is given as Qd = 200 - 3P. Market supply is given as Qs = 2P + 100. What would result if the market price were $30?

What does a market demand curve reflect?

Figure 4-7 -Refer to Figure 4-7. What does the movement from point A to point B on the graph show?