Exam 4: The Market Forces of Supply and Demand

Given the following information about three consumers' monthly demand, construct a market demand curve for potato chips. What would happen to demand if Ryan decided to buy popcorn and not to buy chips? Show this change on your graph.

A perfectly competitive market has which of the following characteristics?

Graph 4-2 -Refer to Graph 4-2. On the graph, the movement from D to D₁ is called:

When supply and demand both increase, equilibrium:

What characteristics or requirements must be met for a market to be considered as each of the following? a. perfectly competitive b. a monopoly c. an oligopoly d. monopolistic competition

The law of supply states that, other things being equal, when the price of a good rises, the quantity supplied of the good falls.

What is the difference between a change in demand and a change in quantity demanded? Graph your answer.

When there is a surplus in a market:

The internet has enabled markets to move towards the competitive model.

Increasing the number of sellers in a market is demonstrated by a movement along the supply curve.

Graph 4-1 -Refer to Graph 4-1. The movement from point B to point A on the graph shows:

Suppose that the incomes of buyers in a particular market for a normal good decline and there is also a reduction in input prices. What would we expect to occur in this market?

Table 4-1 A market is represented by the table below: Quantities demanded: -Refer to Table 4-1. If the price of the good is $1, the quantity demanded in this market would be:

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

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

For each of the following products and industries, determine whether the market structure is perfect competition, monopolistic competition, oligopoly or monopoly. a. mobile phone services b. soft drinks c. local water d. the automobile industry e. fast food in a city f. the textbook industry g. television networks h. market for second hand cars

In a competitive market, buyers cannot influence the price because:

When the price is higher than the equilibrium price:

If mad cow disease causes a beef-scare in Europe, demand for wild meat like deer or kangaroo is likely to shift to the right in that market.

Graphically, the market demand curve is: