Exam 3: Demand and Supply

After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered a(n):

Use the following to answer questions . Exhibit: The Market for Music Downloads -(Exhibit: The Market for Music Downloads) An increase in buyers' income, assuming music downloads are a normal good, would result in a change illustrated by the move from:

Differentiate between a change in supply and a change in quantity supplied.

The theory underlying demand and supply curves assumes that, all other things unchanged, the primary variable that assures the equality of the quantities demanded and supplied is:

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for cookies?

Use the following to answer questions . Exhibit: Demand and Supply of Wheat -(Exhibit: Demand and Supply of Wheat) A temporary price of $2 in this market would result in:

A shift of a demand curve to the right, all other things unchanged, will:

The Case in Point on obesity suggests that food prices are lower because of:

Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for milk?

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

Use the following to answer questions . Exhibit: Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) A factor that may have changed supply from S₁ to S₂ is:

Which of the following is false?

There is equilibrium in the market when:

If steak and potatoes are complements, when the price of steak goes up, the demand curve for potatoes:

Define demand, supply, and equilibrium price.

An increase in supply of a good is caused by:

Use the following to answer questions. Exhibit: The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) A surplus of 210 bags of chocolate-covered peanuts exists if the price is ________ cents per bag.

An increase in income will lead to an increase in demand for inferior goods.

An increase in the price of football tickets will cause the ________ for (of) basketball tickets (a substitute) to ________ .