Exam 3: Market Equilibrium and Shifts

Market equilibrium is the point where quantity supplied and __________ are reasonably in balance.

A failure in the mortgage lending sector could cause

If supply is inelastic,then a demand shift will have a bigger effect on quantity than price.

The price at which the quantity supplied equals the quantity demanded is the

For which pair of goods below would an increase in income have the same effect on both goods?

To determine whether a particular good is a normal good,a luxury good,or an inferior good,you would want to observe what happens to demand for the good when __________ changes.

Because of global warming,countries that are cooler may see ________ in the supply of grain and agricultural products.

A demand shift affects

In the short run,the quantity of available hotel rooms is not particularly responsive to changes in price because hotels take time to build and to destroy.This implies that the short-run supply of hotel rooms is

Eventually,reduced-price hotel rooms will ______ the supply of hotel rooms in a market.

On the basic supply-demand graph,where the demand curve and supply curve intersect is known as the

Which of the following is probably NOT an example of a normal good?

Government action can cause a shift in

A higher price simultaneously __________ the quantity supplied and __________ the quantity demanded,thus reducing the amount of excess __________.

Movement along the demand curve means that the demand schedule ______,and the price _____.

If supply increases,equilibrium price

Between 2000 and 2007,many more U.S.furniture stores purchased their furniture from Chinese manufacturers.As a result,the supply curve for furniture

If a new major oil field is discovered in Africa,the world __________ curve for oil would shift to the __________.

For most goods and services,an increase in income will mean that the demand curve shifts to the left.

Globalization is one important cause of market shifts.