Exam 3: The Supply and Demand Model

Use the supply and demand model to explain what happens to the equilibrium price and the equilibrium quantity for pasta in the following cases: (A)There is a large expansion in the number of firms producing pasta. (B)It is widely publicized in the press that pasta isn't as healthful as previously thought. (C)There is a sudden increase in the price of pasta flour,which is used to produce pasta. (D)Pasta suddenly becomes popular because a movie idol promotes it in television commercials.

A rightward shift of a supply curve represents an increase in supply.

Suppose computer technicians have been making earning a high wage rate and the number of individuals becoming computer technicians doubles.Then,in the market for computer technicians,

The supply curve slopes downward because sellers attempt to sell more when price drops.

According to the law of demand,if the price of compact disks decreased,ceteris paribus,the

In which of the following statements are the terms demand,supply,quantity demanded,and/or quantity supplied used correctly?

At the equilibrium price,there is no pressure on price to rise or fall.

The term quantity supplied refers to

If the price of a product decreases,then the demand curve shifts to the right.

An increase in demand is graphically illustrated by

If price is below equilibrium,

A demand schedule is a table of prices and

Exhibit 3-3 -Refer to Exhibit 3-3.A shortage of ____ units will result in a price of ____.

When economists say that the demand for a product has increased,they mean that consumers are willing to buy more of the product at any given price.

When supply shifts right and demand shifts left at the same time,the equilibrium market price drops.

When a shortage exists in a market,the actual price is greater than the equilibrium price.

When a market equilibrium is achieved,

The term quantity demanded refers to

In the case of a surplus,

The law of supply states that