Exam 3: Demand, Supply, and Market Equilibrium

Excess demand results in a surplus.

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18 -Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D₁ to D₂ and there is an excess demand of 150 million pounds of burritos, the price of burritos would be

If demand is represented as Q_d = 20 - 3P and supply is represented as Q_s = 4 + 5P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________

If the demand for sardines increases as income decreases, sardines are a(n)

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. An increase in demand is represented by the movement

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. A movement from Point C to Point B on demand curve D₂ would be caused by a(n)

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point C to Point E, there has been

Inferior goods are always substandard.

If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will

Refer to the information provided in Figure 3.16 below to answer the question(s) that follow. Figure 3.16 -Refer to Figure 3.16. When the economy moves from Point A to Point C, there has been

Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that

Refer to the information provided in Figure 3.7 below to answer the following question(s). Figure 3.7 -Refer to Figure 3.7. If pizza and hamburgers are substitutes, an increase in the price of hamburgers will cause a movement from Point B on demand curve D₂ to

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

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 decreased, the demand for X shifted from D₁ to D₂. Good X is

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 and french fries are complements. An increase in the price of french fries will cause a movement from

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. A decrease in income would cause the market to move from Point B on demand curve D₂ to

If demand is represented as Q_d = 24 - P and supply is represented as Q_s = 6 + 2P, the demand curve intersects the y axis at a price of ________ and the supply curve intersects the y axis at a price of ________

The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions.

Refer to the information provided in Figure 3.14 below to answer the question(s) that follow. Figure 3.14 -Refer to Figure 3.14. At a quantity demanded of 750, there is an excess

Quantity demanded is determined by how much consumers are willing to pay for the good or service.