Exam 3: Demand and Supply

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each,

-Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine. Electric poles were down and no one had power for days. It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time. Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters.

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

In 2011, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers 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 a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. If the price is $4.00 per pound, there is a

If the price of a movie download falls, the rental rate of DVDs ________ and the equilibrium quantity of DVDs rented ________.

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

The "income effect" in the market for aspirin means that

-In the above figure, a price of $15 per dozen roses would result in a ________ so that the price of roses will ________.

In 2011, the price of peanuts was rising, which lead peanut butter buyers 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.

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

What happens to the demand for Xbox games if the price of an Xbox falls?

A relative price is

Which of the following influences people's buying plans and does NOT shift the demand curve?

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Which of the following decreases the supply of popcorn?

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 there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.