Exam 4: The Market Forces of Supply and Demand

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

Figure 4-12 Firm A Firm B -Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is

Which of the following demonstrates the law of supply?

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if a news report stated that the price of this good was expected to increase next week.

The law of supply states that, other things equal, when the price of a good

A market's equilibrium is the point at which the supply and demand curves intersect.

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

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

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

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

Table 4-2 -Refer to Table 4-2. Suppose Abby, Brandi, Carrie, and DeeDee are the only four buyers in the market. If the price is $8, then the market quantity demanded is

In a given market, how are the equilibrium price and the market-clearing price related?

Which of the following might cause the supply curve for an inferior good to shift to the right?

When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage.

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $3, is there a shortage or surplus, and how large is the shortage/surplus?

If a determinant of demand other than price changes, the demand curve shifts.

Figure 4-3 Consumer 1 Consumer 2 -Refer to Figure 4-3. If these are the only two consumers in the market, then the market quantity demanded at a price of $10 is

A surplus exists in a market if

When the price of a good is higher than the equilibrium price,

An example of a perfectly competitive market would be the market for