Exam 4: The Market Forces of Supply and Demand

Figure 4-31 Consider the market for 2-packs of light bulbs below. -Refer to Figure 4-31. At a price of $6, is there a shortage or surplus, and how large is the shortage/surplus?

Table 4-9 -Refer to Table 4-9. Which combination would produce an increase in equilibrium quantity and an indeterminate change in equilibrium price?

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks?

A decrease in quantity demanded

Which of the following might cause the demand curve for an inferior good to shift to the left?

Figure 4-5 -Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for golf balls in the United States?

Figure 4-29 -Refer to Figure 4-29. If the price increases from $5 to $6, how does the quantity demanded change?

Figure 4-24 The diagram below pertains to the demand for turkey in the United States. -Refer to Figure 4-24. All else equal, a large number of people becoming vegetarians would cause a move from

Figure 4-19 -Refer to Figure 4-19. In this market, equilibrium price and quantity, respectively, are

Which of the following would shift the demand curve for gasoline to the right?

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. At a price of $2, will there be a surplus or shortage of units in this market?

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

A competitive market is a market in which

If a decrease in income increases the demand for a good, then the good is an)

A supply schedule is a table that shows the relationship between

When Mario's income decreases, he buys more pasta. For Mario, pasta is a normal good.

Figure 4-27 Panel a) Panel b) Panel c) Panel d) -Refer to Figure 4-27. Which of the four panels represents the market for winter coats as we progress from winter to spring?

If the demand for a product decreases, then we would expect equilibrium price

Elena loves orange juice. She reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost. Economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice

Sellers respond to a shortage by cutting their prices.