Exam 3: Demand and Supply

Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

If more people buy hybrid cars that have high gas mileage, the equilibrium price of gasoline will ________ and the equilibrium quantity will ________.

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2010. Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the

If the demand for hamburgers decreases, the equilibrium price

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

Between 2000 and 2010, advances in PC production technology increased the supply of PCs sharply. The demand for PCs also increased, but not nearly as much as the supply did. As a result, the price of a PC ________ and the quantity of PCs sold ________.

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices.

A ticket to see the Radio City Rockettes costs $90. You buy a ticket for $30 to see the New York Jets play football. The money price for

-In the figure above, if the price is $8 a unit, is there a shortage or surplus and what is the amount of any shortage or surplus? What is the equilibrium price and quantity?

If shoes rise in price, the demand curve for shoes ________ and the quantity of shoes demanded ________.

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc)/(b+d).

A recession occurs and people's incomes decrease. Knowing that an iPad is a normal good, you predict that the demand for an iPad

-The above table gives the demand and supply schedules for cat food. What is the equilibrium price and quantity?

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased. You predict that the demand for coffee

The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________.

The quantity demanded is