Exam 4: Supply and Demand an Initial Look

Exhibit 4-1 The following are the equations for the supply and demand curves in the market for weezils: where Q_d is the quantity demanded, Q_s is the quantity supplied, and P is the price per weezil in dollars. -Refer to Exhibit 4-1.According to the data given, when the market is in Equilibrium, how many weezils are sold?

Figure 4-4 -Assume that Figure 4-4 shows demand for steak.An increase in income of buyers will change demand from

Since rent controls have been in effect in New York City, apartments have been more plentiful.

Governments of market-oriented economies never tamper with the price mechanism.

If supply increases, the equilibrium price will rise and the equilibrium quantity will fall.

A shift of the demand curve for a good occurs whenever new technologies make inputs used in producing that good available at lower prices.

If the demand for steak shifts to the right, the most likely explanation is that

Drawing the supply curve and the demand curve on the same graph helps show how price is determined.

An important assumption that is made when constructing a demand schedule is that

Figure 4-4 -Assume that Figure 4-4 shows demand for orange juice.An increase in the price of soda will change demand from

The demand curve for a good connects points describing how much consumers

Figure 4-12 -Studies at Cornell University revealed that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop.Resultant feed savings are estimated at $60 million a year.In the chicken market, the

Any factor that shifts the demand curve to the left but does not affect the supply curve will lower the equilibrium price and raise the equilibrium quantity.

Figure 4-12 -The price of gasoline has risen and the quantity sold has fallen.This was likely caused by

For more than a thousand years, the Catholic Church required its members to abstain from meat on Fridays.Catholics customarily ate fish on Friday.After 1966 abstinence from meat on Fridays was no longer required.Consequently, the

George Washington's troops at Valley Forge were almost destroyed by price controls.

During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities.The result of this legislation was

The amount of a good sold in a market at a particular price cannot exceed the quantity

If new manufacturers enter the computer industry, then, holding all other things constant,

Figure 4-6 -How much the quantity of a good traded changes after a shift of the supply curve depends on