Exam 5: Markets in Motion and Price Controls

If we observe both an increase in the price of flour and in the number of units sold,this could be explained by:

If both the supply and demand curves shift to the left,then we can conclude that there will be a(n):

Which of the following would cause a decrease in both the price and quantity of a good exchanged?

Which of the following is likely to result in a higher equilibrium price?

Ceteris paribus,the fear among travelers created by the 9-11 attacks would have what impact on the market for air travel?

Serious natural disasters like hurricanes and tornadoes cause widespread and extensive damage to buildings.As a result of a natural disaster,what would you expect to happen in the market for building supplies?

An increase in both the equilibrium price and the equilibrium quantity of a good could not have been caused by a shift in supply alone.

Exhibit 5-1 The diagram below represents the market for butter. Refer to Exhibit 5-1.If a price floor of $4 is imposed,____ units of butter will be sold.