Exam 4: The Market Forces of Supply and Demand

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

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at

An increase in the number of college scholarships issued by private foundations would

Table 4-14 The table below shows the quantities demanded of milk per month by four families at various prices. -Refer to Table 4-14. If the four families listed are the only demanders in this market and the price of a gallon of milk is $4.00, what is the market quantity demanded?

Table 4-6 -Refer to Table 4-6. If these are the only four sellers in the market, then the market quantity supplied at a price of $4 is

In a perfectly competitive market, the goods offered for sale are all exactly the same.

Figure 4-25 The graph below pertains to the supply of paper to colleges and universities. -Refer to Figure 4-25. All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

The law of supply and demand asserts that

In competitive markets,

When quantity demanded exceeds quantity supplied at the current market price, the market has a shortage, and market price will likely rise in the future to eliminate the shortage.

Figure 4-27 Panel (a) Panel (b) Panel (c) Panel (d) -Refer to Figure 4-27. Which of the four panels illustrates an increase in quantity demanded?

Table 4-15 The following table shows the number of cases of water each seller is willing to sell at the prices listed. -Refer to Table 4-15. Assuming these are the only four suppliers in this market, the function for market supply can be written as QS=

A decrease in quantity supplied

When the market price is below the equilibrium price, suppliers are unable to sell all they want to sell.

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

Which of the following events would unambiguously cause an increase in the equilibrium price of cotton shirts?

When quantity demanded decreases at every possible price, the demand curve has

When quantity demanded has increased at every price, it might be because

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?

The law of demand states that, 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.