Exam 3: Demand and Supply

When does a shortage occur?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the number of suppliers would be shown as a movement from point a to a point such as

The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the

-The above figures show the market for oranges. Which figure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

Which of the following shifts the demand curve for movie downloads rightward?

We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased. Which of the following events could be responsible for this?

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

In a supply and demand figure, the equilibrium price and quantity are found at the

What leads to a decrease in the quantity supplied of a good or service?

Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

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. If the Packers raised ticket prices, the

For a "change in the quantity supplied" but not "a change in supply" to occur, there must be a

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded

Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

Demands differ from wants because

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are ________.