Exam 4: The Market Forces of Supply and Demand

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the number of pastry chefs?

The sum of all the individual supply curves for a product is called

Prices allocate a market economy's scarce resources.

The actions of buyers and sellers naturally move markets toward equilibrium.

Figure 4-9 Panel a) Panel b) -Refer to Figure 4-9. The graphs show the demand for cigarettes. In Panel b), the arrows are consistent with which of the following events?

If buyers and sellers in a certain market are price takers, then individually

Supply refers to the position of the supply curve, whereas the quantity supplied refers to the amount suppliers wish to sell.

Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product.

Which of the following would cause price to increase?

Kara receives a promotion at work, which increases her income. We would expect Kara's demand for

Which of the following is not held constant in a demand schedule?

Assume the market for tennis balls is perfectly competitive. When one tennis ball producer exits the market,

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 $2 is

A likely example of complementary goods for most people would be

Figure 4-8 -Refer to Figure 4-8. Suppose the figure shows the market demand for Big Box e-readers. Suppose the price of the leading competitor's e­readers, a substitute good, decreases. Which of the following changes would occur?

Which of the following is not a determinant of the demand for a particular good?

Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

Figure 4-22 -Refer to Figure 4-22. What is the equilibrium price in this market?

In a market economy,

Figure 4-26 -Refer to Figure 4-26. Which of the following movements would illustrate the effect in the market for Ramen noodles of a decrease in the incomes of young adults, assuming that Ramen noodles are an inferior good?