Exam 3: Supply and Demand: Theory

Exhibit 3-2 -Refer to Exhibit 3-2.Suppose equilibrium is at point C.Something then changes and equilibrium becomes point B.Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?

Which of the following is descriptive of the law of diminishing marginal utility?

Resource X is necessary to the production of good Y.If the price of resource X falls,

On a supply-and-demand diagram,equilibrium is found

When income rises for the buyers of good X,the ____________ curve for good X will shift ________________.

Exhibit 3-13 -Refer to Exhibit 3-13. Fill in blanks (A)and (B)respectively with the market quantity demanded at each given price.

Exhibit 3-13 -Refer to Exhibit 3-13. Each individual consumer's demand curve is ________________ sloping and the market demand curve is _________________ sloping.

Which of the following will not shift a supply curve?

Which of the following statements is false?

Exhibit 3-10 -Refer to Exhibit 3-10.300 units of X will be exchanged in this market if the price is

Exhibit 3-2 -Refer to Exhibit 3-2.Suppose equilibrium is at point A.Something then changes and equilibrium becomes point C.Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good)?

When P = $5,the quantity demanded of a good is 30 units,and the quantity supplied of the good is 50 units. For every $1 decrease in the price of this good,quantity demanded rises by 5 units and quantity supplied falls by 5 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units.

Which of the following illustrates the law of demand?

If people begin to favor science fiction novels to a greater degree than previously,the demand curve for science fiction novels

There is a technological improvement in the production of good X. As a result,the _____________ curve for good X will shift ____________ resulting in a(n)_____________ in the equilibrium price of X and a(n)____________ in the equilibrium quantity of X.

Exhibit 3-2 -Refer to Exhibit 3-2.Which of the following would result in a movement from point B on D? to point A on D??

When the price of Toyota Corollas rises,ceteris paribus,the demand for Corollas falls.

A simultaneous decrease in the demand and the supply of good X always leads to a decrease in the price of good X.

Explain what it means to say that "the market" feeds Cleveland. Give an example using a specific food item to help support your answer.

The sum of consumers' surplus and producers' surplus is maximized at equilibrium.