Market Forces: Demand and Supply

According to the 'law of demand' described in the chapter, what is the relationship between the price of a good and the quantity demanded?

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

If designer jeans are considered a normal good, what happens to the demand curve for designer jeans when consumer incomes rise?

Given the linear demand function for good X: Qx_d = 12,000 - 3Px + 4Py - 1M + 2Ax, what is the relationship between good X and good Y?

What is the market equilibrium price based on the demand and supply functions Qd = 10 - 2P and Qs = 2 + 2P?

A government-imposed price ceiling set below the free-market equilibrium price will result in what market condition?

Consumer surplus is defined as:

Which of the following is most likely to be an inferior good, according to the examples in the chapter?

If the price of Coca-Cola increases, what is the most likely effect on the demand curve for Pepsi, assuming they are substitutes?

What is the 'full economic price' a consumer pays under a price ceiling that creates a shortage?

According to the inverse law of supply, what is the relationship between price and quantity supplied?

Which of the following would cause a leftward shift in the market supply curve for gasoline?

A government-imposed price floor set above the free-market equilibrium price will result in what market condition?

If a simultaneous decrease in demand and a decrease in supply occur, what is the certain effect on the market equilibrium?

Using the data from Table 2-1 for the demand for jeans, what is the quantity demanded when the price is $30?

According to the discussion on page 48, what is the primary difference between an excise tax and an ad valorem tax?

Producer surplus is graphically represented as the area:

In Demonstration Problem 2-6, a price floor of $4 is imposed on a market where Qd = 10 - 2P and Qs = 2 + 2P. What is the quantity demanded and quantity supplied at this price floor?

The Asahi Breweries example in 'Inside Business 2-1' suggests that Asahi beer might be an inferior good in Japan. What does this imply?

What is the primary purpose of a qualitative forecasting tool like supply and demand analysis for a manager?

If a consumer's demand for a beverage is represented by the curve in Figure 2-5(a) and the firm charges a price of $3 per liter, what is the total value the consumer receives from purchasing 2 liters?

What is the primary effect of an increase in the number of firms in an industry on the market supply curve?

If a government imposes an excise tax of $0.20 per gallon on gasoline, how does this affect the supply curve?

In Demonstration Problem 2-1, the demand function for good X is Qx_d = 12,000 - 3Px + 4Py - 1M + 2Ax. Is good X a normal or an inferior good?

If a market is in a state of surplus, what is the natural tendency of the market price?

Based on Demonstration Problem 2-3, what is the quantity of television sets produced when the price of TVs is $400, the price of computer monitors is $100, and the price of an input is $2,000?

What is the primary consequence of deadweight loss from a price ceiling?

If automakers can convert a truck assembly plant into a car assembly plant, and the price of cars rises, what happens to the supply curve for trucks?

When does stockpiling by consumers typically occur?

If a market has a demand curve of Qd = 100 - 5P and a supply curve of Qs = 5P, what is the producer surplus at the equilibrium price?

What is the primary effect on the domestic market of a government imposing a binding quota on an imported good?

If a government sets a price floor for cheese and agrees to purchase any resulting surplus, what is the cost to the government?

Which of these is an example of persuasive advertising?

In Figure 2-15, if supply decreases from S0 to S1 and demand increases from D0 to D1, what is the new equilibrium point?

What is the inverse demand function for a market with the demand function Qd = 6,060 - 3Px?

What is the primary reason producer expectations about future prices can shift the current supply curve?

In a market where Qd = 10 - 2P and Qs = 2 + 2P, if a price ceiling of $1.50 is imposed, what is the resulting shortage?

The movement from point A to point B in Figure 2-6 represents:

In Figure 2-13, what is the equilibrium price of rental cars after the demand increases to D1?

According to the 'Answering the Headline' section, why did Sam and Jane discuss the wisdom of doubling PC Solutions' workforce?

If a market has an inverse supply function of P = 133.33 + (1/3)Qs, what is the producer surplus if the market price is $400 and 800 units are sold?

According to Table 2-2, what are the effects on equilibrium price and quantity when there is a decrease in demand and a decrease in supply?

What does a price floor, such as the minimum wage, create when it is set above the equilibrium wage?

In Figure 2-12, which area represents the cost to the government of purchasing the excess supply created by the price floor?

In the linear supply function Qx_s = b0 + bxPx + brPr + bwW + bHH, what does a positive coefficient for the price of a technologically related good (br) imply?

If consumer tastes change in favor of a product, what happens to its demand curve?

Given the inverse supply function P = (400/3) + (1/3)Qs, what is the price at which producers are willing to supply the first unit of output?

If a simultaneous increase in demand and a decrease in supply occur, what is the certain effect on the market equilibrium?

What happens to the market for a normal good when there is a simultaneous increase in consumer income and an improvement in production technology?

What is the defining characteristic of an ad valorem tax, as illustrated in Figure 2-8?