Exam 4: The Market Forces of Supply and Demand: Part B

An increase in the price of pizza will shift the demand curve for pizza to the left.

Whenever a determinant of supply other than price changes,the supply curve shifts.

When the market price is below the equilibrium price,suppliers are unable to sell all they want to sell.

A surplus is the same as an excess demand.

The quantity supplied of a good or service is the amount that sellers are willing and able to sell at a particular price.

A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

Most studies have found that tobacco and marijuana are complements rather than substitutes.

If a company making frozen orange juice expects the price of its product to be higher next month,it will supply more to the market this month.

Local cable television companies frequently are monopolists.

A decrease in supply shifts the supply curve to the left.

An increase in the price of a substitute good will shift the demand curve for a good to the right.

If something happens to alter the quantity supplied at any given price,then we move along the fixed supply curve to a new quantity supplied.

At the equilibrium price,buyers have bought all they want to buy,but sellers have not sold all they want to sell.

Demand refers to the amount buyers wish to buy,whereas the quantity demanded refers to the position of the demand curve.

At the equilibrium price,quantity demanded is equal to quantity supplied.

If orange juice and apple juice are substitutes,an increase in the price of orange juice will shift the demand curve for apple juice to the right.

Surpluses drive price up,while shortages drive price down.

When the market price is above the equilibrium price,suppliers are unable to sell all they want to sell.

The law of demand states that,other things equal,when the price of a good rises,the quantity demanded of the good rises,and when the price falls,the quantity demanded falls.

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.