Exam 3: Demand and Supply

Use the table below to answer the following questions. Table 3.5.3 -Refer to Table 3.5.3.In a television interview, Joe Cool shows off his designer sport t- shirt, setting off a new craze that doubles business at the sportswear establishments.The quantity of t- shirts demanded doubles at each price.The new equilibrium price is $_______ and the new equilibrium quantity is _______ t- shirts per month.

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2, which represents the market for beer.If the price of pizza, a complement of beer rises, what is the new beer equilibrium, ceteris paribus?

An increase in the price of ground beef

The price at which sellers are not willing to supply a good is $70 a unit.As the quantity supplied of the good increases by one unit, the minimum price at which someone is willing to sell that unit increased by $5.What is the equation of this supply curve?

Suppose income increases.Choose the correct statement.

Consider a graph that shows an upward- sloping supply curve and a downward- sloping demand curve.The equilibrium price and equilibrium quantity are found at the

Use the figure below to answer the following questions. Table 3.5.2 -Refer to Table 3.5.2.Professor Hyper publishes a new study, showing that coffee raises the test performance of students.Students double their demand for coffee.This change would be represented as a

New Maple Sap Method With the new way to tap maple trees, farmers could produce 10 times as much maple syrup per acre.Source: cbc.ca, February 5, 2014 -The new method of tapping maple trees _______ the supply of maple syrup and the _______ quantity supplied of maple syrup.

Which one of the following correctly describes how price adjustment eliminates a surplus?

If A and B are substitutes in production and the price of A falls, the supply of B

Which of the following decreases the supply of popcorn?

"As fewer people buy computers, the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is _______ because _______ .

A technological improvement in the production of good A

If a factor of production can be used to produce either good A or good B, then A and B are

Use the table below to answer the following questions. Table 3.5.4 Quantities demanded and supplied in equilibrium before and after a drought strikes potato farms -Refer to Table 3.5.4.In Region 1, potatoes and hamburgers are

Use the figure below to answer the following questions. Table 3.5.2 -Refer to Table 3.5.2.If the price is set at $1.30 per cup, there is _______ leading to a price _______.

If the price is above the equilibrium price, then

If goods X and Y are substitutes in production, then a rise in the price of good X

A shortage will exist if

If A and B are substitutes and the cost of a factor of production used in the production of A increases, then the price of