econ midterm chapter 3

Indeterminate, decreases

Demand decreases and supply decreases Price: Quantity:

decrease, decrease

Demand decreases and supply is constant. Price: Quantity:

less than

A price ceiling will result in a shortage only if the ceiling price is ______ correct the equilibrium price.

Add up quantities supplied by all individual producers for each price

How do you derive a market supply curve from individual supply curves?

Add up quantities demanded by all individual consumers for each price

How is a market demand curve derived from individual demand curves?

increase, decrease

Supply decreases and demand is constant. Price: Quantity:

surplus

Suppose that in the market for computer memory chips, the equilibrium price is $50 per chip. If the current price is $55 per chip, then there will be a______ correct of memory chips.

to control food prices

Suppose that the government establishes a price ceiling of $3.70 for wheat. Why might the government establish this price ceiling?

False

True or False: A "change in quantity demanded" is a shift of the entire demand curve to the right or to the left.

a good own price, technology, recourse price

What are the determinants of demand?

diminishing marginal utility, An increase in purchasing power as market price decreases

Which of the following characteristics lead to a downward-sloping demand curve?

Increasing opportunity costs, Increasing marginal costs

Which of the following characteristics leads to a upward-sloping supply curve?.

A reduction in market price will lead to an increase in quantity demanded.

Which statement is consistent with the law of demand?

shift the demand curve.

change of income will shift or curve the demand?