Exam 4: The Market Forces of Supply and Demand

Market demand is given as Qd =150 - 3P. Market supply is given as Qs = 2P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto workers accept lower wages, and automobile insurance becomes more expensive?

Which of the following is NOT a determinant of demand?

Figure 4-3 -Refer to the Figure 4-3. In this market, what are the equilibrium price and quantity?

Wheat is the main input in the production of flour. All else equal, if the price of wheat increases, what would we expect?

Table 4-3 -Refer to the Table 4-3. When the price of the good is $1.50, what is the quantity demanded in this market?

Anyone willing to pay the market price for a resource may have it.

Market demand is given as Qd = 70 - 2P. Market supply is given as Qs = P + 10. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

A reduction in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Market demand is given as Qd = 80 - P. Market supply is given as Qs = 3P. In a perfectly competitive equilibrium, what will be price and quantity traded in the market?

Market demand is given as Qd = 95 - P. Market supply is given as Qs = 3P + 15. What would result if the market price were $10?

What can be said about economists in general?

What is the unique point at which the supply and demand curves intersect?

Market demand is given as QD = 250 - 0.5P. Market supply is given as QS = 2P. If price increases from $385 to $390, what is the price elasticity of demand?

Suppose that the number of buyers in a market increases and a technological advancement occurs. What would we expect to happen in the market?

-Refer to the Table 4-1. If the price were $12, what would happen?

Market demand is given as Qd = 120 - 2P. Market supply is given as Qs = 2P + 40. What would result if the market price were $10?

Figure 4-1 -Refer to the Figure 4-1. What is the movement from S1 to S called?

What would happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up, the price of jelly (a complementary good) increased, fewer firms decided to produce peanut butter, and health officials announced that eating peanut butter was good for you?

New oak tables are normal goods. What will happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of wood saws increased?