Exam 4: Supply and Demand: an Initial Look

The following are the equations for the supply and demand curves in the market for weezils: where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars. -Refer to Exhibit 4-1.According to the data given, the equilibrium price of a weezil is

Which of the following would cause a movement up (or leftward) along the demand curve for European autos in the United States?

When a supply curve is constructed, data are required for price and quantity.Each point on the supply curve is

The government of Economica announces that it will purchase its farmers' surplus of milk.From this announcement, you can infer that Economica has a

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

During the Revolutionary War, the Pennsylvania legislature attempted to aid the Continental Army by setting wage floors for soldiers in the army.

If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal.

"Equilibrium" is a situation in which there are no inherent forces to produce change.

Ticket "scalping" is an example of

Which of the following can occur if price controls are imposed on a product?

An increase in price is likely to affect demand in what way?

Price ceilings frequently lead to

-At price P₃ in Figure 4-21, what will tend to happen?

If the demand for steak shifts to the right, a likely reason is that

A demand schedule's position is determined partly by the supply of a good.

We observed that the price of a good rises and the quantity purchased also rises.Everything else being equal, it is consistent that

One motive for "battling the invisible hand" is

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

Figure 4-4 -Assume that Figure 4-4 shows demand for MP₃ players.An increase in the price of music downloads changes demand from

Technological advances shift the supply curve rightward.