Exam 4: The Market Forces of Supply and Demand

Given the graph shown, what will be the result in the market if the price was $6, or $5 or $4?

As a seller, you would be considered part of a perfectly competitive market if:

When we move up or down a given demand curve:

Graph 4-5 -Refer to Graph 4-5. According to the graph, equilibrium price and quantity are:

A market supply curve is found by summing vertically all of the individual supply curves.

Graph 4-5 -Refer to Graph 4-5. According to the graph, at a price of $3:

Demand curves are often upward sloping when prices are very high.

The wheat market is a good example of perfect competition.

In market economies:

Graph 4-6 -Refer to the Graph 4-6. If price were $25, quantity demanded would be:

If the price of DVD players falls, there is likely to be a leftward shift in the demand for DVD movie rentals.

Graph 4-5 -Refer to Graph 4-5. According to the graph, at a price of $7:

Suppose that there is an decrease in input prices for the manufacture of cameras. We would expect the supply of cameras to:

What explains the law of demand?

Equilibrium in a market is found where the supply curve and the demand curve intersect.

A game console and games designed for that console are substitute goods.

If the Government subsidises forest clearance to create more pastoral land for cattle then:

In Australia, a mobile telephone company might be a monopolist.

If the market price is below the equilibrium price, there will be a surplus and the price will rise.

A market with many sellers offering slightly different products is called a monopoly.