Exam 4: The Market Forces of Supply and Demand

The difference between a supply schedule and a supply curve is that a supply schedule

Suppose that Amanda receives a pay increase. We would expect

The quantity demanded of a product is the amount that buyers are willing and able to purchase at a particular price.

Suppose John and Wayne are the only two demanders of cowboy movies. Each month, John buys six cowboy movies when the price is $10 each, and he buys four cowboy movies when the price is $15 each. Each month, Wayne buys four cowboy movies when the price is $10 each, and he buys two cowboy movies when the price is $15 each. Which of the following points is on the market demand curve?

Figure 4-15 -Refer to Figure 4-15. Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for beach towels?

Equilibrium price must decrease when demand

Table 4-3 -Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded

Figure 4-7 -Refer to Figure 4-7. The movement from Da to Db could be caused by

Most markets in the economy are highly competitive.

Which of the following is not a reason perfect competition is a useful simplification, despite the diversity of market types we find in the world?

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then when the price increases from $6 to $8, the market quantity supplied

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for DVDs?

Figure 4-10 -Refer to Figure 4-10. The movement from Point A to Point B represents an

Figure 4-12 -Refer to Figure 4-12. If these are the only two sellers in the market, then the market quantity supplied at a price of $4 is

Figure 4-20 -Refer to Figure 4-20. If the price is $25, then there would be an excess

Figure 4-16 -Refer to Figure 4-16. The shift from S to S' in the market for peaches could be caused by an

Fill in the table below, showing whether equilibrium price and equilibrium quantity go up, go down, stay the same, or change ambiguously.

Figure 4-13 -Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $6 is

In a competitive market, the price of a product

Table 4-4 -Refer to Table 4-4. Suppose the market consists of Barb and Carl only. If the price falls by $2, the quantity demanded in the market increases by