Exam 3: Supply and Demand

If there is an excess supply of a good,the problem of scarcity does not apply to that good.

The market price of airline flights increased recently.Some economists suggest that the price increased because jet fuel is much more expensive than before.As a result,they believe that,in the market for flights:

If the price of mozzarella cheese (an ingredient in pizza)declines,there will be:

Good X and good Y are related goods.Holding everything else constant,if the price of good X decreases and the demand for good Y increases,good X and good Y are probably:

Which statement is TRUE of a normal good?

Use the following to answer question: -(Figure: Supply and Demand in the Orange Juice Market)Use Figure: Supply and Demand in the Orange Juice Market.The market is in equilibrium at point C.A reputable scientist asserts in a major scientific publication that drinking orange juice will increase your life span.What will be the MOST likely new equilibrium point in the orange juice market?

Which factor would cause an INCREASE in the supply of a good?

In the local market for coffee,if Joyce's Java and Everyday Joe's coffee shops go out of business,the _____ curve shifts to the _____.

If the input costs associated with supplying gasoline increases in Wisconsin,the supply of gasoline in Wisconsin will decrease.

The demand curve for season tickets for the Miami Dolphins is the graphical representation of the number of season tickets consumers want to buy at any given price.

Use the following to answer question: -(Table: Competitive Market for Good Z)Use Table: Competitive Market for Good Z.A surplus of the good will occur at a price of

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 vitamin C tablets,which are a substitute in consumption for oranges?

Holding all other things constant,and assuming that ramen noodles are an inferior good for Vanessa,then as her income increases,her demand curve for ramen noodles:

Use the following to answer question: -(Table: The Demand for Chocolate-Covered Peanuts)Use Table: The Demand for Chocolate-Covered Peanuts.If George,Barbara,and Dan are the only three buyers in the market and the price of a bag of chocolate-covered peanuts is $0.50,the total market quantity demanded is _____ bags per month.

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 move to Colorado Springs.Which panel BEST describes how this will affect the market for houses in Colorado Springs?

If supply is upward sloping,a shift of a demand curve to the right,all other things unchanged,will:

In the market for wheat,if the price of ethanol (which is made from corn,a substitute in the production process)increased dramatically,the _____ wheat would _____.

An increase in the price and an ambiguous change in quantity is MOST likely caused by:

Suppose that people expect the price of Bluetooth speakers to rise next year.As a result of this expectation,people will MOST likely:

Use the following to answer question: -(Figure: Four Markets for Online Movie Rentals)Use Figure: Four Markets for Online Movie Rentals.If D₁ or S₁ is the original curve and D₂ or S₂ is the new curve,which of the graphs shows a change that results in a decrease in the quantity of online movie rentals supplied?