Exam 4: Supply and Demand: an Initial Look

In the late 1980s, some medical authorities announced that an acne medication named Retin-A had previously unknown wrinkle-reducing properties.An economist would predict that, following this announcement, the price of Retin-A ____ and the quantity sold__.

A demand schedule relates prices of a particular good to quantities demanded.

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. -The United States typically experiences a large surplus of milk annually.This is caused by

Figure 4-4 -Assume that Figure 4-4 shows demand for orange juice.A decrease in the price of apple juice will change demand from

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

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

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

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

A report on the dangers of cholesterol would likely shift the demand curve for beef downward and to the left.

The demand curve for a typical good has

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

Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate.What happens to the demand for money if the interest rate increases?

Which of the following will shift the demand curve for milk?

Consumer income changes can shift market demand.

If the demand curve shifts outward and the supply curve remains the same, price will fall.

The interest rate is the price borrowers pay to borrow money.Key interest rates are controlled by the Federal Reserve System.If the Federal Reserve acts to reduce interest rates, economists would expect the quantity of money supplied to

Which of the following events would result in an increase in the demand for electricity, causing the demand curve to shift outward?

A decrease in the price of gasoline shifts the demand for auto batteries to the

If orange juice prices fall by 25 percent next year, there will be a

Demand curves can be affected by the prices of related goods.