Exam 3: Demand and Supply

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?

What is the difference between a normal good and an inferior good? Give an example of each.

When income increases, the demand curve for X shifts rightward and the demand curve for Y shifts leftward. These shifts mean that

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

The opportunity cost of a hot dog in terms of hamburgers is the

When both the demand for a good increases and the supply of the good increases, the equilibrium quantity definitely increases.

The opportunity cost of a good is the same as its

For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

The wage rate paid by Walkman producers falls and at the same time the price of raw materials used in the production of Walkmans rises. You predict that the supply curve of Walkmans will

The price of a DVD rental is $2.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental falls by $0.50, the relative price a downloaded movie

A shortage causes the

An increase in the number of producers of gruel ________ the supply of gruel and shifts the supply curve of gruel ________.

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

-The above table gives the demand and supply schedules for Blu-ray discs. Suppose that the price of a Blu-ray disc player increases, resulting in the demand for Blu-ray discs decreasing by 8,000 units at all prices. What are the new equilibrium quantity and equilibrium price of Blu-ray discs?

Why does an increase in the supply of computers lead to a lower price for a computer?

All grapefruit juice producers have decided to blend tangerine juice with the grapefruit juice. This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice. What will happen to the equilibrium price and quantity of the new "blended" grapefruit juice now that it costs more to produce but consumers like it better?

A change in the price of a good

Which of the following is NOT held constant while moving along a supply curve?

An unusually warm winter shifts the