Exam 4: Supply and Demand: an Initial Look

Newspaper recycling has been highly successful-perhaps too successful, given that many households gather and return their newspapers to recycling centers.  The amount of newspapers recycled has dramatically increased, along with the number of recycling plants.  Yet newspapers prefer regular newsprint over recycled newsprint, so the demand for recycled newsprint has remained essentially unchanged. The result of this for the recycled newsprint market is

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

Which of the following would result in a decrease in demand for BMW automobiles?

The law of increasing relative costs, depicted by the concavity of the production possibilities frontier, is most closely related to the

At an equilibrium price for gasoline,

Price ceilings frequently lead to

The supply curve of books (which are produced using paper made from trees) will shift to the right in response to

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

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

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

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

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

If the price of a good rises, supply will

American consumers learn that grape consumption can reduce the incidence of heart disease. Everything else being equal, this will cause the

Normally an increase in the supply of a good will cause

If the U.S. government starts to sell off its stockpile of cheese,

If the price of chicken rises from $1.25 per pound to $1.75 per pound, if the demand curve is consistent with the law of demand, then the quantity of chicken demanded would be predicted to go from

A typical supply curve has

Why are sellers willing to sell more at a higher price?

Assume that Figure 4-16 shows the supply of soda. An increase in the price of syrup used in the production of soda will shift supply from