Exam 4: The Market Forces of Supply and Demand

A reduction in an input price will cause a change in quantity supplied,but not a change in supply.

Ryan tells you that he thinks the price of potato chips,his favourite food,will decrease in the near future.How will he probably respond?

Market demand is given as Qd =150 - P.Market supply is given as Qs = 4P.What would result if the market price were $40?

Table 4-1 -Refer to the Table 4-1.If the price were $12,what would happen?

Which of the following might be the reason when quantity demanded has decreased at every price?

Market demand is given as Qd = 70 - 2P.Market supply is given as Qs = P + 10.What would result if the market price were $10?

What does the law of demand imply?

What relationship is shown by the supply schedule?

What will happen to the equilibrium price and quantity of landline phone services if new technologies lower the costs of providing such services and,at the same time,alternatives such as the Internet or smart phones have become more popular?

If a surplus exists in a market,what do we know?

The law of demand states that the quantity demanded of a product is positively related to price.

If a car manufacturer purchases new labour-saving technology for its assembly line,what would we NOT expect?

If Francis receives a decrease in his pay,what would we expect?

Market demand is given as Qd =300 - 2P.Market supply is given as Qs = 2P + 100.What would result if the market price were $30?

If the demand for a product decreases,what would we expect?

What does supply-and-demand analysis involve?

Figure 4-4 -Refer to the Figure 4-4.If the price is $10,what would happen?

What does the number of buyers affect?

Suppose that the number of buyers in a market increases and a technological advancement occurs.What would we expect to happen in the market?

Suppose the equation Qd=(10-0.4D)-0.6P describes an individual's demand for iTunes content,with D being the price of the device needed to access iTunes content,in $100s. a)Draw the individual demand curve and show a person's quantity demanded when the price P is $8 and the price of the device is $600 (D=6). b)If the market price P increased by $1 (so that the new price is P=$9),what should be the change in the price of the device (D)that would keep the quantity demanded the same as before? Show these changes in a graph. c)For the above question (b),identify which change(s)have determined a movement along the demand curve,and which have determined a shift in the demand curve.