Exam 4: Supply and Demand: an Initial Look

An increase in supply will have what effect on equilibrium price and quantity?

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

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

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

The quantity of DVD players purchased declined in spite of a decline in price. This implies that the

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

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

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

At an equilibrium price, quantity demanded

A black market develops only when quantity demanded exceeds quantity supplied.

A typical supply curve has

Sugar price supports ensure an abundance of sugar, and hence reasonable prices for consumers.

A supply schedule can be plotted on a graph to yield a supply curve.

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

Price controls usually enhance efficiency in the allocation of resources.

In Figure 4-16, an increase in the number of producers will shift supply from

-​Refer to Table 4-1. What is the equilibrium price in the example above?

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

The demand curve is constructed with a

If orange juice prices double next year, there will be a