Exam 3: Demand and Supply

People buy more of good 1 when the price of good 2 rises. These goods are

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

When people's incomes increase, the demand for a good increases. The good is called

-In the above figure, if D₂ is the demand curve, then a price of P₃ would result in

Which of the following will NOT shift the supply curve for pick-up trucks?

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

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

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

A demand curve is also a willingness-and-ability-to-pay curve.

-In the above figure, a price of $15 per dozen for roses would result in

The law of demand states that the quantity of a good demanded varies

-The above figures show the market for oranges. Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

Each point on a supply curve represents

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

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

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best pizza in town. As a result, the demand for Tony's pizza increases and your friend, noticing lines of customers, raises the price of his pizza. But then he fears that the higher price will cause demand to decline, which will cause the price to drop. Is Tony right in his analysis of the situation? Explain.