Exam 4: The Market Forces of Supply and Demand

Table 4-16 The following table shows the supply and demand schedules in a market. -Refer to Table 4-16. If the supply curve shifts to the right, will the price in this market rise or fall?

Suppose there is an increase in the price of steel. We would expect the supply curve for steel beams to

Individual supply curves are summed vertically to obtain the market supply curve.

An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens.

Which of these statements best represents the law of supply?

If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the

Figure 4-28 -Refer to Figure 4-28. Using the points on the figure, describe the change that would occur if the price of a substitute for this good becomes more expensive.

When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change.

The demand curve is the upward-sloping line relating price and quantity demanded.

If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?

A decrease in demand is represented by a

For a market for a good or service to exist, there must be a

Table 4-10 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-10. If Alpine Springs and Dew Good are the only two suppliers in this market, by how much does the market quantity supplied change with each $3 increase in price?

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

Table 4-11 -Refer to Table 4-11. The equilibrium price and quantity, respectively, are

Since individual buyers and individual sellers in a competitive market have no influence on the market price, what do we call the buyers and sellers in a competitive market?

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

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 tennis balls in the United States?

Table 4-12 A country club usually only allows members to purchase tickets for its celebrity golf tournament, but the club is considering allowing non-members to purchase tickets this year. The demand and supply schedules are as follows: -Refer to Table 4-12. If only members are allowed to purchase tickets to this year's celebrity golf tournament, then what will be the equilibrium price?

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded