Chapter Four: The Market Forces Of Supply And Demand

Front 1

What causes the equilibrium quantity to fall?

Back 1

supply and demand decrease

Front 2

If the demand for a product decreases, then we would expect equilibrium price

Back 2

and equilibrium quantity to both decrease

Front 3

If the supply of a product increases, then we would expect equilibrium price

Back 3

to decrease and equilibrium quantity to increase

Front 4

If the supply of a product decreases, then we would expect equilibrium price

Back 4

to increase and equilibrium quantity to decrease

Front 5

When the price of a good is higher than the equilibrium price

Back 5

sellers desire to produce and sell more than buyers wish to produce

Front 6

If, at the current price, there is a surplus of a good, then

Back 6

sellers are producing more than buyers with to buy

Front 7

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a

Back 7

surplus and the market price of roses to decrease

Front 8

A shortage exists in a market if

Back 8

the current price is below its equilibrium price

Front 9

If, at the current price, there is a shortage of a good, then

Back 9

the price is below the equilibrium price

Front 10

Suppose roses are currently $20 per dozen, but the equilibrium price of roses is $30 per dozen. We should expect a

Back 10

shortage to exist and the market price of roses to increase

Front 11

Refer to Figure 14-5.
Equilibrium price and quantity are, respectively

Back 11

$25 and 400 units

Front 12

At the equilibrium price, the quantity of the good that buyers are willing and able to buy

Back 12

exactly equals the quantity that sellers are willing and able to sell

Front 13

Refer to Figure 14-5.
At the equilibrium price,

Back 13

400 units would be supplied and demanded

Front 14

Refer to Figure 14-5.
At a price of $35, there would be a

Back 14

surplus of 400 units

Front 15

Refer to Figure 14-5.
At a price of $35, there would be

Back 15

excess supply, and the price would tend to fall from $35 to a lower price

Front 16

Refer to Figure 14-5.
At what price would there be an excess supply of 200 units of the good?

Back 16

$30

Front 17

Refer to Figure 14-5.
At a price of $15, there would be a

Back 17

shortage of 400 units

Front 18

Refer to Figure 14-5.
At a price of $20, there would be a(n)

Back 18

excess demand. The law of supply and demand predicts that the price will rise from $20 to a higher price

Front 19

Refer to Figure 14-5.
At what price would there be an excess demand of 200 units of the good?

Back 19

$20

Front 20

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell

Back 20

price would fall and the effect on quantity would be ambiguous

Front 21

Beef is a normal good. You observe that both the equilibrium price and quantity of beef have fallen over time. What is the best explanation for this?

Back 21

new medical evidence has been released that indicates a negative correlation between a person's beef consumption and life expectancy

Front 22

What event could cause the price of oranges to fall?

Back 22

the price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges

Front 23

If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?

Back 23

both the equilibrium price and quantity would decrease

Front 24

If consumers view cappuchinos and lattes as substitutes, what would happen to the equilibrium price and quantity of lattes if the price of cappuchinos rises?

Back 24

both the equilibrium price and quantity would increase

Front 25

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

Back 25

price will rise, and the effect on quantity is ambiguous

Front 26

The diagram above pertain to the demand for turkey in the United States.
All else equal, an increase in the income of buyers who consider turkey to be an inferior good would cause a move from

Back 26

Demand curve A to Demand curve B

Front 27

The diagram above pertain to the demand for turkey in the United States.
All else equal, a sale on chicken would cause a move from

Back 27

Demand curve A to Demand curve B

Front 28

The diagram above pertain to the demand for turkey in the United States.
All else equal, the approach of Thanksgiving would cause a move from

Back 28

Demand curve B to Demand curve A

Front 29

The diagram above pertain to the demand for turkey in the United States.
All else equal, buyers expecting turkey to be more expensive in the future would cause a current move from

Back 29

Demand curve B to Demand curve A

Front 30

The diagram above pertain to the demand for turkey in the United States.
All else equal, a large number of people becoming vegetarians would cause a move from

Back 30

Demand Curve A to Demand Curve B

Front 31

The diagram above pertain to the demand for turkey in the United States.
All else equal, the premature deaths of thousands of turkeys would cause a move from

Back 31

x to y

Front 32

The diagram above pertain to the demand for turkey in the United States.
All else equal, an increase in the productivity of turkey farmers would cause a move from

Back 32

Demand Curve A to Demand Curve B

Front 33

The diagram above pertain to the demand for turkey in the United States.
All else equal, a decrease in the price of the grain fed to turkeys would cause a move from

Back 33

y to x

Front 34

The diagram above pertain to the demand for turkey in the United States.
All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from

Back 34

x to y

Front 35

The graph above pertains to the supply of paper to colleges and universities.
All else equal, an increase in the price of the pulp used in the paper production process would cause a move from

Back 35

Supply Curve B to Supply Curve A

Front 36

The graph above pertains to the supply of paper to colleges and universities.
All else equal, sellers expecting the price of paper to decrease next month when many college students leave campuses for the summer would cause a current move from

Back 36

Supply Curve A to Supply Curve B

Front 37

The graph above pertains to the supply of paper to colleges and universities.
All else equal, a major paper manufacturer filing for bankruptcy and shutting down as a result of an IRS tax evasion investigation would cause a move from

Back 37

Supply Curve B to Supply Curve A

Front 38

The graph above pertains to the supply of paper to colleges and universities.
All else equal, an increase in the use of laptop computers for note-taking would cause a move from

Back 38

y to x

Front 39

The graph above pertains to the supply of paper to colleges and universities.
All else equal, buyers expecting paper to be more expensive in the future would cause a current move from

Back 39

x to y

Front 40

Refer to Figure 4-22
What does Panel (a) show?

Back 40

an increase in demand and an increase in quantity supplied

Front 41

Refer to Figure 4-22
What does Panel (b) show?

Back 41

a decrease in demand and decrease in quantity supplied

Front 42

Refer to Figure 4-22
What does Panel (c) show?

Back 42

an increase in quantity demanded and an increase in supply

Front 43

Refer to Figure 4-22
What does Panel (d) show?

Back 43

a decrease in quantity demanded and a decrease in supply

Front 44

Refer to Figure 4-22
Which of the four panels illustrates a decrease in quantity demanded?

Back 44

panel (d)

Front 45

Refer to Figure 4-22
Which of the four panels illustrates an increase in quantity demanded?

Back 45

panel (c)

Front 46

Refer to Figure 4-22
Which of the four panels illustrates a decrease in quantity supplied?

Back 46

panel (b)

Front 47

Refer to Figure 4-22
Which of the four panels illustrates a increase in quantity supplied?

Back 47

panel (a)

Front 48

Refer to Figure 4-22
Which of the four panels represent the market for pizza delivery in a college town as we go from summer to the beginning of the fall semester?

Back 48

panel (a)

Front 49

Refer to Figure 4-22
Which of the four panels represents the market for winter coats as we progress from winter to spring?

Back 49

panel (b)

Front 50

Refer to Figure 4-22
Which of the four panels represents the market for cars as a result of the adoption of new technology on assembly lines?

Back 50

panel (c)