Exam 4: The Market Forces of Supply and Demand

Suppose that the incomes of buyers in a particular market for a normal good increase and there is also an increase in input prices. What would we expect to occur in this market?

Which of the following will definitely cause equilibrium quantity to fall?

If a shortage exists in a market, what do we know?

A dress manufacturer is expecting higher prices for dresses in the near future. What would we expect?

Which of the following would be most likely to increase the price of a new house?

Suppose that the incomes of buyers in a particular market for a normal good increase and there is also a reduction in input prices. What would we expect to occur in this market?

What are the forces that make market economies work?

Market demand is given as QD = 60 - P. Market supply is given as QS = 3P. If price increases from $4 to $8, what is the price elasticity of demand?

What happens in a market economy?

Figure 4-7 -Refer to the Figure 4-7. What does the movement from point A to point B on the graph show?

Market demand is given as Qd = 150 - P. Market supply is given as Qs = 4P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Figure 4-4 -Refer to the Figure 4-4. At a price of $20, which of the following would happen?

Market demand is given as QD = 300 - 6P. Market supply is given as QS = 4P. If price increases from $10 to $14, what is the price elasticity of demand?

If suppliers expect the price of their product to fall in the future, what will they do?

What does supply-and-demand analysis involve?

Market demand is given as QD = 250 - 0.5P. Market supply is given as QS = 2P. If price increases from $50 to $55, what is the price elasticity of demand?

Alyssa rents five movies per month when the price is $3.00 each and seven movies per month when the price is $2.50. What has Alyssa demonstrated?

What does fewer sellers in the market cause?

Which of the following would cause both the equilibrium price and equilibrium quantity of day-old bread (an inferior good) to increase?

Which of the following would be most likely to decrease the price of a new house?