Exam 4: Supply and Demand: An Initial Look

Firms often seek to borrow money to expand their capital stock,and the price they pay for the money is the interest rate.What happens to the quantity of money supplied if the interest rate increases?

An individual's demand schedule

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

Any factor that shifts the demand curve to the left but does not affect the supply curve will lower the equilibrium price and raise the equilibrium quantity.

Drawing the supply curve and the demand curve on the same graph helps show how price is determined.

A demand curve shows the relationship between price and quantity demanded only so long as all other things are held constant.

An increase in consumer income will shift both the supply and demand curves.

Price floors lead to market surpluses.

Which of the following is an example of a price floor?

One motive for "fighting the invisible hand" is

Last year,1,000 cases of cough syrup were sold at $10; this year,1,200 cases were sold at $12.The most probable interpretation of these data is that the

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

If both the supply and demand curves shift to the left,then we can conclude that there will be

Price floors set a legal minimum price on a product or commodity.

The price of coal fell and the quantity sold also fell.Everything else being equal,it is consistent that

The laws of supply and demand force prices to an equilibrium.

If the demand for steak shifts to the right,the most likely explanation is that

A demand curve can be thought of as

Suppose demand can be described with the equation Q = 900 - 5P and supply with the equation Q = 100 + 5P. a.Determine the equilibrium price and quantity. b.Determine the surplus or shortage if the price were $100.

Why does quantity supplied increase when price increases?