Exam 4: Supply and Demand: An Initial Look

Figure 4-11 -The Russian government has restricted sugar availability to reduce the supply of illegal liquor (sugar is used to increase alcohol content).Russians also like to sweeten their tea with jam, another sugar product.Which graph in Figure 4-11 depicts the impact of sugar rationing on the Russian tea market?

A demand curve can be thought of as

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

We observe that the price of food rises and the quantity purchased also rises.This means the

All other factors held constant, if the price of game consoles rise, the demand for gaming titles will

A surplus occurs when price is higher than the market equilibrium.

If the price of oil, a close substitute for coal, increases then the

On a traditional supply and demand diagram,

Lines, ration coupons, and black markets are symptoms of a

Figure 4-20 -If there are empty seats at the university basketball game when the price per ticket is P*, then this situation can best be represented by which graph in Figure 4-20?

An increase in price will increase supply.

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

Technological advances that allow a good to be produced at a lower cost will shift the demand curve rightward.

When used in a professional or technical sense, the law of supply and demand refers to

The price for labor is the wage rate.What happens to the quantity of labor supplied if wages increase?

Along a supply curve,

Figure 4-16 -Assume that Figure 4-16 shows the supply of new houses.An improvement in the technology for building houses will shift supply from

At equilibrium, the market will clear, with no surpluses or shortages occurring.

When price is above the equilibrium level, suppliers offer more than demanders wish to buy.

The laws of supply and demand did not apply to Asian currencies.