Demand and Supply

Suppose that Carolyn receives a pay increase. We would expect

Carolyn's demand for inferior goods to decrease

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Crystal to increase

A market demand curve represents

How much of a good all buyers are willing and able to buy at each possible price

Ford Motor Company announces that it will offer $3,000 rebates on new Mustangs starting next month. As result of this information, today's demand curve for Mustangs

Shifts to the left

Wheat is the main input in the production of flour. If the price of wheat decreases, all else equal, we would expect the

Supply of flour to increase

What is a determinant of market supply curve but not a determinant of an individual seller's supply?

The number of seller

Which event would cause the price of oranges to fall

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

If the price increases from $1.00 to $1.50,

The quantity demanded in the market decreases by 7 units

When the price of a good or service changes,

There is a movement along a given demand curve

Suppose there is an increase in steel prices. We would expect the supply curve for steel barrels

To shift leftward

Suppose you make jewelry. If the price of gold falls, we would expect you to

be willing and able to produce more jewelry than before at each possible price

Holding all other things constant, a higher price for ski lift tickets would

decrease the number of skis sold.

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months. As a result, we can expect the supply of lumber to

fall now

An increase in the price of a good would

give producers an incentive to produce more

Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

increases

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

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

Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are

substitute goods

Workers at a bicycle assembly plant currently earn the mandatory minimum wage. If the federal government increases the minimum wage by $1.00 an hour it is likely that the

supply of bicycles will shift to the left.

A dress manufacturer recently has come to expect higher prices for dresses in the near future. We would expect

the dress manufacturer to supply fewer dresses now than it was supplying previously

A weaker demand together with a stronger supply would necessarily result in

to lower the price