Exam 4: Supply and Demand: an Initial Look

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

If the supply curve for housing has the usual positive slope, rent controls are likely to

Sugarcane can be used to produce both granulated sugar and ethanol. Recent regulations in certain countries now permit a higher amount of ethanol to be added to gasoline. As a result of these changes, an economist would expect granulated sugar prices to ____, and quantity sold to ____.

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

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

When there is an increase in demand,

The following price-quantity coordinates for gold used by U.S. dentists were observed: P = $875/ounce, Q = 342,000; P = $200/ounce, Q = 706,000. These points most likely lie along the

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

At price P ₁ in Figure 4-21, what will tend to happen?

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

When a demand curve is constructed, each point that demand curve represents

Are markets always in equilibrium?

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

Assume that Figure 4-4 shows demand for new houses. A decrease in income of buyers will change demand from

Rent controls and controls on other prices often aggravate the very problem they are intended to solve.

Price controls date back to

If the price of chicken rises from $1.25 per pound to $1.75 per pound, and the quantity demanded goes from 250 pounds per day to 175 pounds per day, this illustrates

Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon. What most likely happens next?

If new firms enter the computer manufacturing industry, then, holding all other things constant,

Sugarcane can be used to produce both granulated sugar and ethanol. Recent regulations in certain countries now permit a higher amount of ethanol to be added to gasoline. An economist would expect sugarcane prices to ____, and quantity sold to ____.