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Exam 4: The Market Forces of Supply and Demand (PART 1)

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Question 91

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What happens if there is a shortage of a good at the current price?

A) Sellers are producing more than buyers wish to buy.
B) The market must be in equilibrium.
C) The price is below the equilibrium price.
D) Quantity demanded equals quantity supplied.

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Question 92

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Market demand is given as Qd = 140 - 5P.Market supply is given as Qs = 2P.What would result if the market price were $25?

A) a shortage of 35
B) a surplus of 35
C) a surplus of 70
D) a shortage of 70

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Question 93

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What impact would a higher price for batteries tend to have?

If the price of a substitute to good X increases,what will happen?

What will result from a decrease in resource costs to firms in a market?

What is step one in the three-step program for analyzing changes in equilibrium?

Figure 4-8 -Refer to the Figure 4-8.The graph shows the demand for cigarettes.Which most likely happened?

If the supply of a product increases,what would we expect?

What is the term for buyers and sellers who have no influence on market price?

Which would NOT be a role that prices play in a market economy?

Table 4-1 $\begin{array} { l | l | l } \hline \text { PRICE } & \text { QUANTITY DEMANDED } & \text { QUANTITY SUPPLIED } \\\hline \$ 10 & 10 & 60 \\\hline \$ 8 & 20 & 45 \\\hline \$ 6 & 30 & 30 \\\hline \$ 4 & 40 & 15 \\\hline \$ 2 & 50 & 0\end{array}$ -Refer to the Table 4-1.If the price were $8,what would happen?

Market demand is given as Qd = 75 - P.Market supply is given as Qs = 3P + 15.In a perfectly competitive equilibrium,what will be the quantity?

When evaluating differences or similarities between an increase in supply and an increase in quantity supplied,what do we know?

What would result from an increase in the number of scholarships issued for university education?

Workers at a bicycle assembly plant currently make minimum wage.If the provincial government increases the minimum wage by $1.00 an hour,what will likely happen?

Table 4-2 $\begin{array} { | l | c | c | } \hline & \text { An Increase in Supply } & \text { A Decrease in Supply } \\\hline \text { An Increase in Demand } & \text { A } & \text { B } \\\hline \text { A Decrease in Demand } & \text { C } & \text { D } \\\hline\end{array}$ -Refer to the Table 4-2.What is the space that would represent a decrease in equilibrium quantity and an indeterminate change in equilibrium price?

Which of the following would definitely result in a higher price in the market for chocolate bars?

New oak tables are normal goods.What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,some buyers exit the market for oak tables,and the price of wood saws increased?

Suppose that a decrease in the price of X results in less of good Y sold.What are X and Y called?

Suppose that Carolyn receives a pay increase.What would we expect?