Exam 4: The Market Forces of Supply and Demand

Graph 4-3 -Refer to Graph 4-3. The movement from point A to point B on the graph is called:

An increase in the number of scholarships issued for university education would:

In 1989 an international trade ban was announced for ivory. If people expected the price of ivory to rise after the ban, then their demand before the ban would:

If the demand for movies falls when income falls, then movies must be an inferior good.

A change in the cost of producing a good will cause the supply curve of the good to shift.

Which of the following would be an example of a monopoly?

In some countries the exchange rate with is set by the government. This is often below the market equilibrium exchange rate. How would this affect buyers and sellers of foreign currency?

When an increase in the price of one good raises the demand for another good, the two goods are called complements.

Which of the following would not shift the demand curve for beef?

Generally, the market for ice-cream would be considered:

How important are prices in allocating resources in a market economy?

The law of demand states that:

A demand curve:

Graph 4-4 -Refer to Graph 4-4. On the graph, the movement from S to S₁ could be caused by:

Why would Qantas be interested in the price of its competitors in the trans-Tasman air route?

Which of the following is NOT one of the steps in analysing how an event affects a market?

An increase in income will cause a rightward shift in the demand curve if the good is a normal good.

Many ivory carvers stockpiled ivory in the 1980s. A plausible explanation is:

One reason why government taxes on cigarettes imposed on sellers reduces smoking is that:

If there is a shift of the demand curve, this is known as: