Exam 4: Supply and Demand an Initial Look

The imposition of price ceilings on a market often results in

A black market develops only when quantity demanded exceeds quantity supplied.

Along a supply curve,

In a move to free the economy from unnecessary regulation, Congress decides to remove sugar price supports.What would most likely happen to the number of producers of sugar?

Assume the demand schedule for cookies is downward sloping.If the price of cookies falls from $1.50 to $1.25 per dozen,

Rent controls and controls on other prices often aggravate the very problem they are intended to solve.

If both the supply and demand curves shift to the left, then we can conclude that there will be

Which of the following is the correct way to describe equilibrium in a market?

A decrease in demand will have what effect on equilibrium price and quantity?

Price floors set a legal minimum price on a product or commodity.

Sugar price supports primarily benefit consumers.

Cost-reducing technological advancements allow suppliers to earn more profits but have no noticeable effect on the supply curve.

What is the economic reasoning behind the proposal to legalize drugs?

At equilibrium, quantity demanded equals quantity supplied.

Consumer income changes can shift market demand.

Figure 4-4 -In Figure 4-4, an increase in population will change demand from

In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory.Economists tend to point out that

American consumers decide to boycott grapes in support of the farm workers' union.Everything else being equal, the

Figure 4-21 -A shortage will tend to occur at which price in Figure 4-21?

Why does quantity supplied increase when price increases?