Exam 3: Supply and Demand

A movement along the supply curve is the same as a:

What is a market shortage? Describe the results of a market shortage for the consumer and for the supplier.

If demand does not change,an increase in the number of sellers will cause equilibrium price to fall.

If supply is unchanged,a decrease in the demand for soft drinks will cause equilibrium price to:

Ceteris paribus,which of the following will cause a rightward shift of the supply curve for plasma TVs?

Consumers strive to maximize their satisfaction given available resources.

If demand is unchanged,a rightward shift in the supply curve for plasma TVs will cause:

Table 3.1 - Individual demand and supply schedules Suppose there are three buyers and three sellers in a market as shown in the following individual demand and supply schedules. -In Table 3.1,if the price is $4,the market:

Figure 3.3: -If the government wants to use a price ceiling to change the market outcome in Figure 3.3,it should choose a price of:

Figure 3.4: -Which panel of Figure 3.4 represents the changes in the market for hip-hugger jeans when U.S.college students decide hip huggers look really good and a large quantity of cheap hip-hugger jeans are imported into the United States?

Figure 3.3: -If the actual market price is held to $10 per unit in Figure 3.3,there will be a:

Figure 3.3: -If the market price is set at $20 per unit in Figure 3.3:

A market exists any place where goods are bought and sold.

Producers supply goods and services to the product market.

Figure 3.4: -Which panel of Figure 3.4 represents the changes in the market for beef when the price of corn (cattle feed)rises and the Surgeon General reports that red meat contributes to coronary disease?

When there is a shortage in a market,prices are likely to:

A decrease in price leads to a decrease in quantity demanded.

The supply curve will shift to the right if the cost of factor inputs decrease.

If a state adopts a free college tuition program,ceteris paribus,economists expect there to be a:

Figure 3.1 Answer the indicated question(s)by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market,ceteris paribus. -Refer to Figure 3.1.Consider the market for new houses.The level of income increases for all consumers.