Exam 4: Demand, Supply, and Market Equilibrium

Sellers who were originally willing to supply 400 units of a good at $4 per unit are now willing to supply 800 units at $4 per unit. That change would be described as:

Which of the following would cause the quantity of wheat bread demanded to increase, but not the demand for wheat?

Assuming that Chinese food and Thai food are substitutes, if P. F. Chang's Chinese Restaurant reduces its prices:

Which of these statements best represents the law of demand?

Suppose Sprite and 7-Up are considered by consumers to be substitutes. The likely economic impact of a decrease in the price of 7-Up is a:

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:

A decrease in the number of sellers in the market causes

When the price of a good is higher than the equilibrium price,

As a result of the decrease in donut prices at Real Yum Donuts, Dippin Donuts managers discover that the demand for their donuts has:

According to the law of demand, other things equal, when the price of a good or service falls, demand increases.

Because personal tastes differ, what are substitutes for one person need not be substitutes for another person.

Technological advances in recycling make it possible to produce a greater quantity of paper from a given quantity of recycled newspapers. Predict the likely impact on the supply curve for paper.

A decrease in demand and an increase in supply are indicated by

When the price of ice cream falls, we would expect the quantity demanded of ice cream to rise, ceteris paribus.

Which of the following is most likely to be an inferior good?

Increasing government taxation or regulation of an industry generally increases the supply of goods.

A shortage exists in a market if

​Exhibit 4-3 -Refer to Exhibit 4-3. Everyone has been raving about the newest summer blockbuster film. Since your Aunt Finola just sent you a nice letter with $20 enclosed, you decide to see the movie even though ticket prices have risen to $10 per ticket. You are not alone, as many students are waiting in line at the theater, shifting the demand curve to D₁. The theater owners are now selling:

Which of the following would be most likely to cause a reduction in the supply of Nintendo video games?

The quantity of hamburger that households are willing to purchase is predicted to rise if there is: