ECON 2301 CH 4

In the given graph, the equilibrium price is ____ and the equilibrium quantity is ____.

$8; 15 units

An increase in supply is represented by a movement from

S0 to S1.

Suppose an exciting new game is released that is only available on tablet computers. This will cause the 'demand' for tablet computers to 'shift out' , causing tablet computer price to 'rise' and quantity to 'rise'

The new game increases the inherent desirability of tablet computers. Consumers are willing to buy more at each price, resulting in an outward shift of Demand. Relative to the old equilibrium, the price of tablet computers is higher, and the quantity is higher.

Select all that apply Which of the following can shift the demand curve for a good?

The price of another good rises. The income of the consumers falls.

Which of the following does not result in a shift of your supply curve for labor?

The wage that you earn doubles.

An increase in demand is represented by a movement from

C to D.

A market demand curve is the

horizontal sum of all individual demand curves.

A market supply curve is the

horizontal sum of all individual supply curves.

When upward pressure on price is exactly offset by the downward pressure on price, a market is said to be

in equilibrium.

Select all that apply Demand for a good could change if the

income of the consumers changes. price of another good changes.

Select all that apply The law of supply is based on the fact that a firm can readjust its activities to supply

more of a good if its price rises. less of a good if its price falls.

The law of supply is based on the fact that a firm will want to supply

more of a good when its price rises because the opportunity cost of not supplying the good has risen.

When the wage rate paid to labor in a particular sector is below equilibrium, the

number of workers seeking jobs exceeds the number of jobs available in that sector.

A movement along a demand curve can be caused by a change in the

price of the good.

Supply shifts with a change in:

production technology. expectations of sellers. the price of inputs for the good.

To calculate market supply add

quantities supplied at every price.

The law of demand states that a rise in price will cause

quantity demanded to fall.

If the price of candy falls, the

quantity of candy demanded will rise.

If the price of shoes rises, the

quantity of shoes demanded will fall.

Excess supply is the amount by which

quantity supplied exceeds quantity demanded.

According to the law of supply, when the price of shoes rises the

quantity supplied will rise.

Select all that apply The law of supply states that quantity supplied ___.

rises as price rises falls as price falls

A change in a factor other than price that affects demand leads to a

shift in demand.

The law of demand is based on the concept of

substitution.

Graphically, demand refers to

the entire demand curve.

The shift of the demand curve from D0 to D1 shown could be due to

the imposition of a tax on the good.

According to the law of supply, when the price of candy rises

the quantity supplied rises.

A typical supply curve is

upward sloping.

Supply tells us how much will be bought at

various prices.

Suppose a market has an excess supply and price starts to fall. What is likely to happen to quantity demanded and supplied?

A fall in quantity supplied and a rise in quantity demanded.

In the graph, the demand curve is represented by

A.

Suppose the wages of computer-factory workers rises. This will cause the 'supply' of tablet computers to 'shift in' , causing tablet computer price to 'rise' and quantity to 'fall'

An increase in the wages of factory workers makes producing tablet computers more expensive at every price of tablet computers. Firms will produce less at every price, resulting in a shift inwards for the Supply Curve. Relative to the old equilibrium, the price of tablet computers is higher and the quantity is lower.

Select all that apply Which phenomena underlie the law of demand for the market?

At lower prices, existing demanders buy more. At lower prices, new demanders enter the market.

Select all that apply Which phenomena underlie the law of demand for the market?

At lower prices, new demanders enter the market. At higher prices, existing demanders buy less.

An increase in quantity demanded is represented by a movement from

B to A.

In the graph shown here, the supply curve is best represented by

B.

True or false: A change in the price of a good causes a shift in the demand curve.

False

Select all that apply A change in which of the following can shift the demand curve for a good?

Taxes paid by and subsidies paid to by the consumer Tastes and preferences of the consumers Expectations of the consumers in the future price of the good

Suppose the prices for popular apps (complements to tablet computers) rise. This will cause the 'demand' of tablet computers to 'shift in' , causing tablet computer price to 'fall' and quantity to 'fall' .

The cost of apps makes tablet computers less attractive. Consumers are willing to buy fewer at each price, resulting in an inward shift of Demand. Relative to the old equilibrium, the price of tablet computers is lower, and the quantity is lower.

True or false: Equilibrium is the concept in which opposing dynamic forces cancel each other out.

True

Suppose the number of tablet computer manufacturers rises. This will cause the 'supply' of tablet computers to 'shift out' , causing price to 'fall' and quantity to 'rise'

When the number of tablet computer manufacturers rises, more is produced at every price of tablets. This results in an outward shift in the Supply Curve. Relative to the old equilibrium, the price of tablet computers is lower and the quantity is higher.

Suppose the price of notebook computers (a substitute for tablets) falls. This will cause the 'demand' of tablet computers to 'shift in' , causing price of tablet computers to 'fall' and quantity to 'fall'

When the price of a notebook computers falls, consumers will switch from buying tablets to notebooks, as these products are substitutes. They will demand fewer tablets at every price for tablets, an inward shift for the Demand Curve. Relative to the old equilibrium, the price of tablet computers is lower and the quantity is lower.

The movement from D to C represents

a decrease in demand.

Graphically, quantity supplied refers to

a point along the supply curve.

Quantity demanded is how much will be bought at

a specific price.

A change in the amount demanded from A to B could be due to

a subsidy on the good.

The shift of the supply curve shown in the figure could be due to

a tax levied on the producer of the good. Arrow pointing to S1

To create a market demand curve,

add quantities demanded of all individuals in the market at every price.

The shift of the supply curve shown in the figure could be due to

an improvement in technology.

A change in quantity supplied from A to B would be caused by

an increase in supply.

The shift of the demand curve from D0 to D1 could be due to

an increase in the price of a complementary good.

The shift of the supply curve shown could be due to

an increase in the price of inputs.

A change in the amount demanded from A to B could be due to

an increasing consumer preference for the good.

The law of demand is based on the observation that if the price of a good rises,

consumers will substitute a relatively cheaper good.

The law of supply states that the quantity supplied of a good is

directly related to the good's price.

The demand curve is generally

downward sloping because as price rises, quantity demanded tends to fall.

Select all that apply The law of demand states that the quantity demanded

falls as price rises. rises as price falls.