Exam 3: Demand and Supply

The price of jet fuel falls. This fall shifts the

A movement along the demand curve shows a change in demand.

If the price of crude oil falls, the equilibrium price of gasoline ________ and the equilibrium quantity ________.

When supply and demand both increase, the

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

The Market for Wapanzo Beans Quantity Demanded Price Quantity Supplied (millions of pounds (dollars per (millions of pounds per year) pound) per year) -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If it is discovered that wapanzo beans help prevent cancer, then supply will ________ and demand will ________.

-The equilibrium quantity in the above figure is

If the price of chocolate chip cookies rises, then

After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because

In 2011, the price of peanuts was rising, which lead peanut butter sellers to expect the price of peanut butter would rise in the future. Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Which of the following increases the demand for a normal good?

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

In 2007 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

-In the figure above, which movement could be the result of an increase in the wages paid to oil workers?

-In the above figure, if the price is $8 then there is a

When the price is below the equilibrium price, the quantity demanded

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a substitute like hot dogs?

-Using the data in the above table, at the price of $80 a phone, a

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________.