Exam 4: The Market Forces of Supply and Demand

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?

The quantity demanded of a good is the amount that buyers are

A decrease in supply is represented by a

A leftward shift of a demand curve is called a(n)

To obtain the market demand curve for a product, sum the individual demand curves

You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. When the price decreases from $6 to $4, the market quantity demanded

When a surplus exists in a market, sellers

Figure 4-14 -Refer to Figure 4-14. Which of the following would explain a movement from E1 to E2?

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

If a good or service has only one seller, then the seller is called a monopoly.

Which of the following is not held constant in a supply schedule?

Suppose you make jewelry. If the price of gold falls, then we would expect you to

Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?

If the demand for a good falls when income falls, then the good is called an inferior good.

A very hot summer in Atlanta will cause

Figure 4-11 -Refer to Figure 4-11. The movement from point A to point B on the graph represents

Surpluses drive price up, while shortages drive price down.

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Figure 4-20 -Refer to Figure 4-20. If the price is $10, then there would be a