Exam 4: Market Demand and Supply

If X is a normal good, an increase in consumers' income will result in an increase in the demand for good X.

If the current price of a good is the same as that found at the intersection of the market supply and demand curves, then:

Narrbegin Exhibit 3.6 Demand and supply curves -In Exhibit 3.6, Panel A, the movement from A to C describes a/an:

Assuming that day-old bread is an inferior good, an increase in consumer income, other things being equal, will cause a/an:

Demand for goods and services reflects:

Which of the following factors do not shift supply curves?

If a shortage exists in a market then:

If more people enter medical school, we can expect:

Assume that the equilibrium price for a good is $5. If the market price is $10, a:

Innisfail banana farmers said that they lost up to 15 per cent of their crop because of wild weather. This indicates that the:

Narrbegin Exhibit 3.1 Market demand -Suppose there are only three people in the economy: Jane, Harry and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3.1. The total quantity of corn demanded if the market price is $5 is _____.

If physical fitness becomes fashionable, what will happen in the market for sport outfits?

Narrbegin Exhibit 3.3 Supply curves -In Exhibit 3.3, a shift in the supply curve from S₁ to S₂ represents a/an:

In a market, competitive forces guarantee that any price other than the equilibrium price is:

If the government introduces a new subsidy to poultry farmers, we can expect:

An increase in supply is reflected as a rightward (outward) shift of the supply curve and is caused by an increase in price.

Narrbegin Exhibit 3.5 Demand and supply data for radios $\begin{array} { | c | c | c | } \hline \text { Price (\$) } & \begin{array} { c } \text { Quantity demanded } \\\text { of radios }\end{array} & \begin{array} { c } \text { Quantity supplied } \\\text { of radios }\end{array} \\\hline 75 & 400 & 800 \\\hline 70 & 450 & 750 \\\hline 65 & 500 & 700 \\\hline 60 & 550 & 650 \\\hline 55 & 600 & 600 \\\hline 50 & 650 & 550 \\\hline 45& 700 & 500 \\\hline 40 & 750 & 450 \\\hline\end{array}$ -In Exhibit 3.5, if there is a surplus of radios of 300 units, the current price of radios must be:

An increase in income increases the supply of all goods.

A market:

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would: