Exam 2: Supply and Demand

Usury laws place a ceiling on interest rates that lenders such as banks can charge borrowers.The interest rate is the price of a loan.Graph a binding usury law on the market for loans,and describe the effects of the law on the quantity of loans supplied and the quantity of loans demanded.

Horizontally summing different supply curves assumes

-The above figure shows the market for apples.If apple farmers convince the government to set a minimum price of $4 per pound,then

Assuming plasma TVs are a normal good,an increase in consumer incomes will lead to

-The above figure shows four different markets with changes in either the supply curve or the demand curve.Which graph best illustrates the market for computers after technological advances in making computers occur?

If oranges were found to cure cancer,

Government actions can cause a

Equilibrium is defined as a situation in which

The price of crude oil increased to $100 per barrel in early 2008.What would we expect to see happen to the supply of gasoline,which is produced using crude oil?

Suppose a market were currently at equilibrium.A rightward shift of the supply curve would cause a(n)

-The above figure shows a graph of the market for pizzas in a large town.At a price of $14,there will be

Lionfish is an aquatic invasive species in the southeastern U.S.and the Caribbean.Current removal policies focus on harvesting the lionfish for human consumption.Assuming that lionfish is a substitute for snapper,what will likely happen to fishing efforts for lionfish if the price of snapper increases?

-The above figure shows a graph of the market for pizzas in a large town.No pizzas will be demanded unless price is less than

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

When "rent controls" result in a shortage of housing,landlords

Lionfish is an aquatic invasive species in the southeastern U.S.and the Caribbean.Current removal policies focus on harvesting the lionfish for human consumption.Assuming that lionfish is an inferior good,what will likely happen to fishing efforts if income increases?

During the winter of 1997-1998,the northeastern United States experienced warmer than usual conditions.The price of home heating oil was less than it was during the previous winter,but people bought less home heating oil.This contradicts the Law of Demand.

Agricultural price supports are

What happens to the equilibrium price and quantity of coffee when there is a leftward shift of the supply curve for tea? Explain.

Use supply-and-demand graphs to explain why parking is free at the suburban shopping mall but one typically must pay to park when shopping downtown.