Exam 4: The Market Forces of Supply and Demand

When it comes to people's tastes,what do economists generally believe?

Which of the following are the words most commonly used by economists?

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts fell,the price of jelly (a complementary good)fell,more firms decided to produce peanut butter,and health officials announced that eating peanut butter was good for you?

Market demand is given as Qd = 200 - 6P.Market supply is given as Qs = 4P.What would result if the market price were $15?

Market demand is given as Qd =150 - 3P.Market supply is given as Qs = 2P.What would result if the market price were $25?

Market demand is given as QD = 220 - 4P.Market supply is given as QS = 2P + 40.If price increases from $42 to $46,what is the price elasticity of demand?

Market demand is given as Qd = 150 - 3P.Market supply is given as Qs = 2P.What would result if the market price were $25?

If buyers now wanted to purchase larger quantities of a soft drink,what do we know about its demand curve?

Who ultimately determines the demand for a product or service?

Pens are normal goods.What will happen to the equilibrium price of pens if the prices of pencils rises,consumers experience an increase in income,writing in ink becomes fashionable,people expect the price of pens to rise in the near future,the population increases,fewer firms manufacture pens,and the wages of pen-makers increase?

A shortage will occur at any price below equilibrium price and a surplus will occur at any price above equilibrium price.

Table 4-2 -Refer to the Table 4-2.What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Smart phones are normal goods.What will happen to the equilibrium price and quantity of smart phones if phone plans become more expensive,fewer firms produce smart phones,and smart phone users experience a decrease in income?

Which of the following best describes a perfectly competitive market?

What is on the vertical axis of a demand graph?

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs represents the market for oranges after disease impacts much of the Florida orange harvest?

Currently you purchase six packages of hot dogs a month.You graduate in December and will start your new job on January 2.You have no plans to purchase hot dogs in January.What are hot dogs for you?

When we move up or down a given demand curve,what is held constant?

Market demand is given as Qd = 70 - 2P.Market supply is given as Qs = P + 10.In a perfectly competitive equilibrium,what will be price and quantity traded in the market?

What is an example of an inferior good?