Exam 4: The Market Forces of Supply and Demand

Figure 4-6 -Refer to the Figure 4-6.What could cause the shift from D1 to D?

What is the side of the market that deals with the willingness and ability to produce and sell?

Smart phones are normal goods.What will happen to the equilibrium price and quantity of smart phones if phone plans become cheaper,more firms start producing smart phones,and smart phone users experience an increase in income?

What will happen if the price of a good is low?

In a free market,who determines how much of a good will be sold and the price at which it is sold?

If a good is "normal," what will an increase in income result in?

Figure 4-1 -Refer to the Figure 4-1.What is the movement from S to S1 called?

What could be one result of a cold snap in Florida?

What happens when there is a surplus in a market?

Suppose donuts are currently selling for $14 per dozen.The equilibrium price of donuts is $12 per dozen.What would we expect?

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

Market demand is given as QD = 200 - 3P.Market supply is given as QS = P + 10.If price increases from $12 to $18,what is the price elasticity of demand?

Market demand is given as Qd = 80 - 2P.Market supply is given as Qs = 2P.What would result if the market price were $10?

What might be the reason when quantity demanded has increased at every price?

Wheat is the main input in the production of flour.All else equal,if the price of wheat increases,what would we expect?

Figure 4-5 -Refer to the Figure 4-5.Which of the following is shown in Graph A?

Figure 4-5 -Refer to the Figure 4-5.Which of the four graphs represents the market for toboggans in August?

What is the sum of all individual demand curves for a product?

Figure 4-2 -Refer to the Figure 4-2.What would happen at the equilibrium price?

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