Exam 3: Demand and Supply

In 2006, the base price of a Hummer SUV was about $30,000. By 2008 as gasoline prices increased,

Which of the following is consistent with the law of demand?

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will __________and the equilibrium quantity will __________.

-The equilibrium quantity in the above figure is

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

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

The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?

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

As the relative price of a good falls, the substitution effect implies that people buy

A fall in the price of wheat fertilizer __________the equilibrium price of wheat and __________the equilibrium quantity of wheat.

The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are __________

A substitute is a good

Which of the following will NOT shift the supply curve for pick-up trucks?

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will __________and the equilibrium quantity will__________ .

Which of the following would NOT shift the demand curve for turkey?

Price (dollars per pound of cat food) Quantity demanded (tons of cat food per year) Quantity supplied (tons of cat food per year) 1.00 52 15 1.50 46 26 2.00 43 34 2.50 40 30 3.00 35 44 -The above table gives the demand and supply schedules for cat food. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

Which of the following is NOT one of the factors that influences the supply of a product?

If the demand and supply curves are described by the following equations P=a-bQ and P=c+dQ, respectively, the equilibrium quantity is Q*=a-c)/b+d) .

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?