Exam 3: Demand and Supply

What will happen to the equilibrium price and quantity of coffee if it is discovered to help prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee?

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

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

An inferior good is a good for which demand

ʺThe recent hurricanes in Florida are bringing financial gain to California citrus growers. Due to extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever.ʺ Which of the following statements best explains the economics of this quotation?

Which of the following does NOT shift the supply curve?

Suppose the market for CD-Rs has the demand and supply schedules shown in the table above. Suppose a decrease in the price of a CD burner increases the quantity of disks demanded at each price by 20 million. What are the new equilibrium price and equilibrium quantity of CD-Rs?

When the price is less than the equilibrium price,

The quantity demanded of a good or service is the quantity that a consumer

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

Personal computers are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of computers.

Price (dollars per pair) Quantity demanded (pairs per week) Quantity supplied (pairs per week) 30 130 70 40 120 80 50 110 90 60 100 100 70 90 110 80 80 120 90 70 130 -The table shows the demand and supply schedules for jeans.

-The above figures show the market for oranges. Which figure shows the effect of a new technology called ʺthe orange picker,ʺ which harvests oranges less expensively than ever before?

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil. Price (dollars per disk) Quantity demanded (millions of disks per month) Quantity supplied (millions of disks per month) 0.50 50 0 1.00 40 15 1.50 30 30 2.00 20 45 2.50 10 60 3.00 0 75

Jeep Cherokees are a normal good. If peopleʹs incomes increase, the direct result will be

The statement that ʺdemand increasesʺ means that there is a

An increase in the demand for computers and a decrease in the number of sellers of computers will definitely __________.

If workers who make DVDs get a pay raise, the equilibrium price of a DVD __________and the equilibrium quantity of DVDs__________ .

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the