Exam 3: Demand and Supply

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________.

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

If the price of lumber rises, then, in the market for sawdust,

When economists speak of preferences as influencing demand, they are referring to

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

Which of the following leads to a movement along the supply curve for shredded wheat but does not shift the supply curve for shredded wheat?

At prices above the equilibrium price, what occurs?

A bakery can produce either cakes or cookies. If the price of cookies rises, then

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of

An increase in technology for producing personal computers leads to

A decrease in the expected future price of cars

-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

The quantity supplied of a good is

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?

The law of demand implies that demand curves

The money price of a pizza is $12 per pizza and the money price of a taco is $2 per taco. The relative price of a pizza is

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts rightward, the equilibrium

The "law of demand" states that, other things remaining the same, the quantity demanded of any good is

If the price of a good changes but everything else influencing suppliers' planned sales remains constant, there is a