Exam 4: Demand, supply, and Markets

Attempts are being made to develop a biodegradable plastic using agricultural produce such as potatoes.If these attempts are successful,what will happen to the equilibrium price and quantity of potatoes?

An increase in demand for chocolate chips would usually result in a(n)

Which of the following best defines supply?

A decrease in the price of peanut butter will cause a leftward shift of the supply curve of peanut butter.

Exhibit 4-9 -Exhibit 4-9 shows a demand curve for dog ownership.If your local government passes an anti-dog-litter law that raises the personal cost of owning a dog from C to C',the quantity of dogs demanded will

Exhibit 4-8 -In a rental market like the one in Exhibit 4-8,a government-imposed rule that rent cannot exceed $750 per month would be called a

Suppose demand increases and supply increases.Which of the following will happen?

Over the last few years,demand for DVDs has increased,and yet their equilibrium price has fallen.Which of the following best explains this situation?

Exhibit 4-6 -In Exhibit 4-6,suppose a price floor is established at $20.00.What is the result?

A decrease in demand will cause a(n)

Which of the following will cause the demand curve for gasoline to shift leftward?

A new hormone will increase the amount of milk each cow produces.If this hormone is adopted by many dairies,what will be the effect on the milk market?

Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day.This suggests that

Exhibit 4-7 -Exhibit 4-7 depicts the milk market.The horizontal line,P,represents a price ceiling imposed by the government.Which of the following is true?

Suppose there are only two goods,apples and oranges.What happens if the price of each good increases by 15 percent?

A shortage occurs whenever

A simultaneous increase in supply and demand will always lead to an increase in the prices of a good.

Studies show that the demand curve for peas has shifted.Which of the following explanations would you reject first?

A surplus of shoes will cause

Exhibit 4-14 -Refer to exhibit 4-14.An increase in the birth rate would cause which of the following to happen?