The Market Forces of Supply and Demand

According to the definitions provided in Chapter 4, what is a market?

What does the 'law of demand' state?

Based on Catherine's demand schedule in Figure 1 on page 94, how many ice-cream cones does she demand when the price is $2.00?

If peanut butter and jelly are complements, what would happen to the demand for jelly if the price of peanut butter increased?

Which of the following would cause a movement along the supply curve for ice cream, rather than a shift in the supply curve?

What is the point where the supply and demand curves intersect called?

If the market price for ice cream is $2.50 per cone, based on Figure 9 (a) on page 104, what situation exists in the market?

What happens in a market when a binding price ceiling is imposed?

What happens in a market if the price is below the equilibrium price?

Suppose a hurricane destroys part of the sugarcane crop. Because sugar is an input for ice cream, what is the effect on the market for ice cream?

A bus ride is considered an 'inferior good'. What does this mean in the context of supply and demand?

In the table in Figure 2 on page 95, what is the market quantity demanded for ice-cream cones at a price of $2.50?

What is the primary role of prices in a market economy, as described in the chapter's conclusion?

Suppose both a heat wave and a hurricane occur in the same summer. The heat wave shifts the demand for ice cream, and the hurricane, by raising sugar prices, shifts the supply. What is the certain outcome on the equilibrium price and quantity of ice cream?

According to the table in Figure 6, what is the market quantity supplied at a price of $2.00?

The claim that 'the price of any good adjusts to bring the quantity supplied and quantity demanded for that good into balance' is known as what?

If a public service announcement convinces smokers to smoke less, how is this represented on a supply-and-demand diagram for cigarettes?

According to the analysis in Chapter 4, what are the two essential characteristics of a perfectly competitive market?

If buyers' expectations about the future price of a good change, such that they expect the price to fall tomorrow, what is the immediate effect on the demand curve today?

What is the primary reason the supply curve slopes upward?

Using the three-step process for analyzing changes in equilibrium, what is the first step?

When hot weather increases the demand for ice cream, the text states there is an increase in 'quantity supplied' but no change in 'supply'. Why is this distinction made?

What is the equilibrium price and quantity in the market for pizza according to the schedule in Problem 10 on page 113?

If the price of leather jackets, a substitute for sweatshirts, falls, what happens in the market for sweatshirts?

What is a 'demand schedule'?

In the market for minivans, what happens if a strike by steelworkers raises the price of steel?

When a surplus exists in a market, what do sellers do to eliminate it?

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

In the basketball ticket market described in Problem 13 on page 113, what is unusual about the supply curve?

Suppose that scientists discover that eating oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees more productive. What is the effect on the equilibrium price and quantity of oranges?

Which term describes a market in which there are so many buyers and sellers that each has a negligible impact on the market price?

If a stock market crash lowers people's wealth, what is the likely impact on the market for a normal good like minivans?

What happens to the market for a good if a tax is imposed on its sellers?

Based on the market for basketball tickets in Problem 13 on page 113, what is the equilibrium price and quantity?

If a seller in a competitive market charges more than the going price, what will happen?

An 'increase in demand' is represented on a diagram as a:

What does a vertical supply curve signify?

If a study finds that people who regularly eat ice cream live longer, what would be the immediate impact on the ice cream market?

According to the table in Figure 6 on page 101, what is the market quantity supplied if the price is $1.00 per cone?

The development of new automated machinery for producing minivans would have what effect on the minivan market?

If DVDs and TV screens are complements, what is the effect of a technological advance that reduces the cost of manufacturing TV screens on the market for DVDs?

What does a situation of 'excess supply' in a market also known as?

If more buyers enter the market for a good, what is the effect on the demand curve?

Suppose ketchup is a complement for hot dogs. If the price of hot dogs rises, what happens in the market for ketchup, tomatoes, and orange juice?

What is the key distinction between a 'change in demand' and a 'change in quantity demanded'?

If sellers expect the price of their good to rise in the future, what is the likely impact on the supply curve today?

According to the analysis of the 1973 OPEC oil crisis, what was the primary cause of the long lines at gas stations in the U.S.?

If a market has a single seller, it is called a:

In the market for chocolate bars described in Problem 14 on page 113, the demand equation is QD = 1,600 – 300P and the supply equation is QS = 1,400 + 700P. What is the equilibrium price?

In the context of the supply and demand model, what does the term 'equilibrium' signify?