Exam 3: Demand, Supply, and Market Equilibrium

When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium ________ of blueberries will definitely ________, ceteris paribus.

When there is an excess supply of a product in an unregulated market, the tendency is for

Wealth is a flow measure.

Refer to the information provided in Figure 3.13 below to answer the question(s) that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers are a normal good. An increase in income will cause a movement from

Refer to the information provided in Figure 3.3 below to answer the question(s) that follow. Figure 3.3 -Refer to Figure 3.3. As your income increased, the demand for X shifted from D₁ to D₂. Good X is

The quantity demanded of Pepsi has decreased. The best explanation for this is that

Refer to the information provided in Figure 3.12 below to answer the question(s) that follow. Figure 3.12 -Refer to Figure 3.12. The supply curve for hula hoops shifts from S_{1 to} S₀. This could be caused by

All households have ultimately limited incomes.

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. An increase in income would cause the market to move from Point B on demand curve D₂ to

Quantity demanded of a product is determined only by how much of that product consumers desire.

Households are paid income for the resources they supply in an input market.

Refer to Scenario 3.3 below to answer the question(s) that follow. SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves. -Refer to Scenario 3.3. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on mustard producers, prohibiting them from raising the price of mustard. This will cause

Refer to the information provided in Table 3.1 below to answer the question(s) that follow. Table 3.1 Price per Pizza Quantity Demanded (Pizzas per Month) Quantity Supplied (Pizzas per Month) \ 3 1,200 600 6 1,000 700 9 800 800 12 600 900 15 400 1,000 -Refer to Table 3.1. This market will be in equilibrium if the price per pizza is

Refer to the information provided in Figure 3.11 below to answer the following question(s). Figure 3.11 -Refer to Figure 3.11. An increase in the price of tomatoes (an input for gardenburgers) will cause a movement from Point B on supply curve S₂ to

An increase in the wage rate of steel workers will reduce the supply of steel.

According to the law of demand, quantity demanded decreases as ________, ceteris paribus.

Refer to Scenario 3.2 below to answer the question(s) that follow. SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding. -Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused the equilibrium price of spinach to ________ and the equilibrium quantity of spinach to ________.

Michael Dell was the first individual who sold computers by mail order. The company founded by Dell is now one of the largest and most successful computer companies in the United States. Michael Dell would be classified as a(n)

If price is below the equilibrium, then quantity supplied will be less than quantity demanded putting upward pressure on price.

Refer to the information provided in Table 3.2 below to answer the question(s) that follow. Table 3.2 Price per Cheeseburger Quantity Demanded (Cheeseburgers per Month) Quantity Supplied (Cheeseburgers per Month) \ 5 1,500 500 6 1,200 700 7 900 900 8 600 1,100 9 300 1,300 -Refer to Table 3.2. If the price per cheeseburger is $6, the price will