Exam 3: B: Demand, Supply, and Market Equilibrium

Refer to the above data.If price was initially $14, we would expect:

The demand for most products varies directly with changes in consumer incomes.Such products are known as:

Compared to the normal taxi waiting lines, Uber has:

With a downward sloping demand curve and an upward sloping supply curve for a product, a decrease in resource prices will:

Which diagram above illustrates the effect on the peanut butter market as a result of a technological advance which reduces the costs of harvesting peanuts?

There is a shortage in a market for a product when:

Productive efficiency refers to:

A surplus indicates that the quantity demanded is greater than the quantity supplied at that price.

If L and M are complementary goods, an increase in the price of L will result in:

One can say with certainty that equilibrium price will decline when supply:

In presenting the notion of a demand curve economists presume that the most important variable in determining the quantity demanded is:

Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in demand may have been caused by:

Refer to the graph below.The graph shows the market for a good. Identify a correct statement about the market.

If demand increases and supply simultaneously decreases, equilibrium price will rise.

When economists say that the demand for a product has increased, they mean that:

A ceiling price in a competitive market will result in persistent surpluses of a product.

With a downward sloping demand curve and an upward sloping supply curve for a product, an increase in incomes will:

An increase in consumer incomes will:

Suppose in each of four successive years producers sell more of their product and at lower prices.This could be explained:

Which factor will increase the demand for a product?