Exam 3: Supply and Demand

For each of the following changes,show the effect on the supply curve and state what will happen to market equilibrium price and quantity in the short run. a.The government requires pollution control filters that raise costs on goods. b.Wages of workers in this industry fall. c.There is an improvement in technology. d.The price of the good falls. e.Producers expect that the price of the good will fall in the future.

A good's Demand Curve is Q_D = 50 - 2P,and its Supply Curve is Q_S = 40 + P. a.When P = $10,what is the difference,if any,between Q_D and Q_S? b.When P = $2,what is the difference,if any,between Q_D and Q_S? c.What are the equilibrium values of P and Q?

The market for milk is in equilibrium.Recent health reports indicate that calcium is absorbed better in natural forms such as milk,and at the same time,the cost of milking equipment rises.Carefully analyze the probable effects on the market.

A good's Demand Curve is Q_D = 25 - P,and its Supply Curve is Q_S = 10 + 2P. a.When P = $20,what is the difference,if any,between Q_D and Q_S? b.When P = $3,what is the difference,if any,between Q_D and Q_S? c.What are the equilibrium values of P and Q?

Which of the following would cause a decrease in the demand for fish?

Which of the following would cause a short-run decrease in the quantity supplied of personal computers?

Suppose that the demand for oranges increases.Carefully explain how the rationing function of price will restore market equilibrium.

The guiding function of price is

Comparative statics analysis in economics is best illustrated as

For each of the following changes,show the effect on the demand curve and state what will happen to market equilibrium price and quantity in the short run. a.Consumers expect that the price of the good will be higher in the future. b.The price of a substitute good rises. c.Consumer incomes fall,and the good is normal. d.Consumer incomes fall,and the good is inferior. e.A medical report is published showing that this good is hazardous to your health. f.The price of the good rises.

A fall in the price of pesticide use in the production of cotton will

How long is the "short-run" time period in the economic analysis of the market?

Holding supply constant,an increase in demand will