Exam 4: Demand and Supply

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

Which of the following is true regarding demand? i.Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii.Demand refers to one quantity at one time. iii."Demand" and "quantity demanded" are the same thing.

Quantity demanded (tons of cat food per year) Price (dollars per pound of cat food) Quantity supplied (tons of cat food per year) 52 1.00 15 46 1.50 26 43 2.00 34 40 2.50 40 35 3.00 44 -The above table gives the demand and supply schedules for cat food.What is the equilibrium price and quantity?

Which of the following shifts the demand curve for movies rightward?

Market equilibrium occurs when

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

Consider the market for cellular phones.Which of the following shifts the demand curve leftward?

A rise in the price of a substitute in production for a good leads to

-The above figures show the market for HD televisions.If people's incomes increase and HD televisions are a normal good,which figure shows the effect of this change?

When does a shortage occur?

An increase in the quantity demanded is shown as

What is the difference between a normal good and an inferior good.Give an example of each.

The "quantity demanded" of any good or service is ________ during a specified time period and at a specified price.

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

-The above figure shows the market for laptops.Which of the following causes a movement from B to A?

The "law of demand" indicates that if the University of Maine increases tuition,all other things remaining the same,

Smart phones are becoming less expensive as new technology reduces the cost of production.In a supply and demand model,explain the effects of the technological innovations and their effect on the quantity of smart phones.

The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________,and the equilibrium quantity ________.

Plywood is used in the construction of houses.If the price of plywood rises,what happens to the supply of houses?