Exam 4: Supply and Demand: an Initial Look

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

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

An economist would predict that if the government imposes price controls on medical care, the result will be an increase in the supply of affordable care in the United States.

A major university hired an economist to forecast enrollment to produce a prediction of "head count." One variable that she would probably emphasize more than any other in trying to make the forecast

Which of the following is a characteristic of a market where a price floor is in place?

Price ceilings lead to market surpluses.

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

The Snowshoe Inn in Vermont charges $259 per room during the winter ski season and $149 during the summer months.The number of rooms available and the operating costs for the inn remain constant throughout the year.What is indicated by these prices?

When there is a decrease in demand,

A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium.

-In Figure 4-18, there would be a surplus of T-shirts if the price were

​ ​ -Refer to Table 4-1.At $10, what is the surplus?

-Throughout history, governments have used price controls to

Last year, 1,000 cases of cough syrup were sold at $10; this year, 1,200 cases were sold at $12.The most probable interpretation of these data is that the

Over the previous year, 2,000 boxes of antihistamine tablets were sold at a price of $20 per box, and during the current year, 2,500 boxes of tablets were sold at $25 a box.The most likely interpretation of these data is that the

If an increase in income results in higher prices for yachts, we can conclude

Black markets are frequent occurrence in markets with price ceilings.

In 1966, the Catholic Church eliminated the centuries-old requirement that members abstain from eating meat on Fridays.Catholics customarily ate fish on Friday.Following this removal, there was a 12.5 percent fall in prices of fresh fish.From this, it can be deduced that the

Price ceilings generally do not lead to which of the following?

Governments can eliminate market surpluses through the imposition of price floors.