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

Which of the above diagrams illustrate(s) the effect of an increase in the price of Molson upon the market for Labatt? (Molson and Labatt are brands of beer that are considered to be substitute goods.)

Refer to the diagram, which shows demand and supply conditions in the competitive market for product X.Other things equal, a shift of the supply curve from S₀ to S₁ might be caused by a(n):

The market system automatically corrects a surplus condition in a competitive market by:

The demand curve for a product might shift as the result of a change in:

For most commodities, purchases tend to rise with increases in buyers' incomes, and fall with decreases in buyers' incomes.Such commodities are known as:

If X is a normal good, a rise in money income will shift the:

Refer to the diagram given below. The above diagram shows the demand for and the supply of Product X.Assume that the market for Product X is competitive.If the supply curve is S₁ and the demand curve is D₀, then:

Superstar rock singers may set concert ticket prices below the equilibrium level because:

The table below shows the demand schedule for three individual buyers purchasing bushels of wheat.Assume that there are three buyers in the market for wheat (data are hypothetical). Refer to the table above.If there were 1,500 buyers with demand schedules similar to the demand schedules for each of the three buyers in the table above, then the market demand for wheat at $5 will be:

In a competitive market the equilibrium price and quantity occur where:

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

A result of a fall in the price of gasoline, consumers buy more gasoline and take more driving vacations.This situation is an illustration of:

An increase in demand for oil and an increase in supply of oil will:

Refer to the table. In a free-market economy, according to the rationing function of prices, the market price and quantity will adjust to:

Which of the following will cause a decrease in market equilibrium price and an increase in equilibrium quantity?

Which of the following combinations of changes in supply and demand (listed in the same order) is likely to cause an indeterminate change in price?

If two goods are substitutes in consumption, a decline in the price of one will cause an increase in the demand for the other.

The law of supply indicates that:

Refer to the above graph.X and Y are complementary products.Which one of the lines in the graph best illustrates this relationship?

Lamps and light bulbs are: