Exam 3: Supply and Demand

Equilibrium quantity will always increase if:

A farmer finds that when he produces more corn,he also has more cornstalks that he can sell as decorations.To the farmer,corn and cornstalks are:

In much of the country,homeowners choose to heat their houses with either natural gas or heating oil,both of which are normal goods.Which factor would cause an increase in the demand for natural gas?

If the supply and demand curves intersect at a price of $47,then any price above that would result in:

If the United States increases tariffs on imports of lumber from Canada (which raises the price of lumber in the United States),the equilibrium price of new homes in the United States will _____ and the equilibrium quantity of new homes in the United States will _____.

Use the following to answer question: -(Figure: The Demand and Supply of Wheat)Use Figure: The Demand and Supply of Wheat.If there is a decrease in supply of 2,000 bushels per period at each price,the equilibrium price and quantity will be _____ and _____ bushels per period,respectively.

Assume that corn is an input in the production of beef but not in the production of pork.Further,beef and pork are substitutes in consumption.A decrease in the price of corn will _____ the supply of beef and _____ the demand for pork.

Which factor would NOT result in an increase in the supply of a good?

Suppose you manage a corner grocery store.If peanut butter is an inferior good,what do you suppose would happen to the price and quantity sold of peanut butter as incomes fell during a recession?

According to the law of demand,if the price of steak increases in Rhode Island,the demand for steak will decrease in Rhode Island.

Use the following to answer question: -Figure: Demand and Supply of Gasoline)Use Figure: Demand and Supply of Gasoline.The initial equilibrium price and quantity (at intersection of S1 and D)of gasoline are:

Pizza is a normal good.If students' incomes at your college increase,the effect on pizza will be:

Use the following to answer question: -(Figure: Shifts in Demand and Supply)Use Figure: Shifts in Demand and Supply.The graph shows how supply and demand might shift in response to specific events.Suppose a new machine allows restaurants and fast-food outlets to produce french fries at a lower cost.Which panel BEST describes how this will affect the market for french fries?

When the price of desks increases,the:

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time.This would lead to a(n):

The primary difference between a change in supply and a change in the quantity supplied is that:

An increase in the price of hamburger would probably result in _____ in the demand for hamburger buns.

Many public utilities burn oil to generate electricity.If the price of oil increases,we expect a shift to the _____ in the _____ curve for _____ and a _____ price for electricity.

The market for good Y,a perfectly competitive good,is made up of 15 producers who each produce the same amount of good Y.If the price of good Y is $100 and the total quantity supplied is 150,how many units of good Y is each producer supplying?

An increase in _____ will have an ambiguous (uncertain)effect on price.