Exam 4: Supply and Demand

If the quantity of burgers supplied increases from 2 to 4 when the price of burgers increases from $2.00 to $5.00, the response by producers would be shown by:

A change in a shift factor of demand will actually cause both a change in quantity supplied and a change in quantity demanded.Explain why,and demonstrate with a graph.

Which of the following will move the supply curve for housing in Florida, a popular retirement state, to the left?

Honey and jam are substitute products. If the price of honey increases, the demand for:

Refer to the graphs shown. Higher costs of production combined with an expectation on the part of consumers of higher prices in the future would result in the shifts depicted in:

Refer to the graphs shown. The arrow that would best illustrate the impact on consumers of reducing sales tax on a good paid by suppliers is:

One reason economists distinguish between micro and macro is supply and demand are:

Refer to the graphs shown. Assume the graph reflects demand in the automobile market. Which arrow best captures the impact of increased gasoline prices on the automobile market?

Refer to the graphs shown. The market is computers. Which graph best represents the impact of cheaper memory chips on the computer market?

Graphically, a change in price causes:

John and Steve are roommates at Siberian University.They are planning to have a party this coming weekend and need to go shopping for snacks.They know all of their friends like nacho cheese flavored tortilla chips,so that is the only type of snack they plan to buy.After pooling their cash,they take $18 and head out to the nearest grocery store.Walking down the chip aisle,they fill their cart with 6 bags of Tostada brand chips at $3 per 14-ounce bag.Continuing down the chip aisle,they see Durango brand chips are available at $2 per 14-ounce bag,so they put all of the Tostada chips back and instead purchase 9 bags of Durango chips.Is John and Steve's behavior consistent with "the law of demand"? Explain.(Extra Credit: If they hadn't changed their minds,would they have violated the law of demand?)

Which of the following would cause quantity demanded to change without changing the demand curve?

According to the law of demand, only the price of a good influences the amount people will choose to purchase.

A demand curve is downward-sloping because as the price of a good falls, demanders will substitute some other good for that good whose price has fallen.

Explain the error in the following statement: "For the past 10 years,the prices of automobiles have been rising and each year people have purchased more autos.Price and quantity demanded are directly related and the economists' law of demand is incorrect."

Sometimes price cuts can have an unintended result of consumers waiting for deeper discounts. What does this waiting suggest about supply and demand?

If you observe a market where quantity demanded doesn't equal quantity supplied, a logical conclusion is that:

The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of:

When workers are paid higher wages, production costs:

If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the: