Exam 3: Supply and Demand

Suppose the market for gasoline is in equilibrium.You have heard that the price of crude oil is falling because of new oil discoveries.You are also aware that the number of car and truck drivers is steadily rising.Knowing this,you predict that the price of gasoline will _____ and the quantity of gasoline bought and sold will _____.

A decrease in the price of eggs will result in a(n):

Use the following to answer question: -(Figure: Shifts in Demand and Supply)Use Figure: Shifts in Demand and Supply.The figure shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's orange crop.Which panel BEST describes how this will affect the market for oranges?

Use the following to answer question: -(Figure: Four Markets for Online Movie Rentals)Use Figure: Four Markets for Online Movie Rentals.Which of the graphs illustrates what may happen in the market for online movie rentals if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost to the firm of producing online movie rentals falls?

A competitive market occurs when there are many buyers and sellers of the same good.

If supply is upward sloping,a decrease in demand with no change in supply will lead to a(n)_____ in equilibrium quantity and a(n)_____ in equilibrium price.

_____ illustrates a positive relationship between price and quantity.

A technological advance in the production of automobiles will _____ the _____ automobiles.

An ambiguous change in price and a decrease in quantity are MOST likely caused by:

Consider the market for iPads.What happens if a fantastic new alternative tablet is developed by Samsung and,at the same time,a boat carrying a large shipment of iPads is attacked by pirates and sunk?

The horizontal summation of individual demand curves for a particular product,holding the price constant and completed for all possible prices,gives you:

If the price of corn rises,we generally expect the:

If supply is upward sloping,an increase in demand with no change in supply will lead to a(n)_____ in equilibrium quantity and a(n)_____ in equilibrium price.

In the market for canned pinto beans,_____ will increase if income increases and if pinto beans are a(n)_____ good.

A beneficial technological change is developed in the production of cranberries.At the same time,scientists discover that cranberries have significant health benefits.This will result in:

Use the following to answer question: -(Figure: Shifts in Demand and Supply III)Use Figure: Shifts in Demand and Supply III.The figure shows how supply and demand might shift in response to specific events.Suppose the technology for producing snowboards improves.Which panel BEST describes how this will affect the market for winter parkas,a complement in consumption of snowboards?

Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124 units.If the price of good X is $2:

When an increase in the price of wheat,an important ingredient in the production of bread,happens at the same time as an increase in the number of people consuming bread:

Which statement BEST exemplifies the law of demand?

Use the following to answer question: -(Figure: Shifts in Demand and Supply IV)Use Figure: Shifts in Demand and Supply IV.The figure shows how supply and demand might shift in response to specific events.Suppose half of the people in San Diego pack up and move to Colorado Springs.Which panel BEST describes how this will affect the supply of houses in San Diego?