Exam 3: Demand and Supply

William Gregg owned a mill in South Carolina.In December 1862,he placed a notice in the Edgehill Advertister announcing his willingness to exchange cloth for food and other items.Here is an extract: 1 yard of cloth for 1 pound of bacon 2 yards of cloth for 1 pound of butter 4 yards of cloth for 1 pound of wool 8 yards of cloth for 1 bushel of salt If the money price of bacon was 20¢ a pound and the money price of salt was $2.00 a bushel,people would ________.

Use the figure below to answer the following questions. Figure 3.4.2 -A shortage is the amount by which quantity

The Genius Software Company has developed an amazing new software package to be used only with Einstein Computers.As a result,the equilibrium price of

Which of the following "other things" are not held constant along a demand curve?

Use the figure below to answer the following questions. Figure 3.2.1 -Which one of the following would result in a movement from point A to point B in Figure 3.2.1?

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.If the price is $7,then the surplus is

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for tacos.A new scientific study reveals that tacos cause bad breath.Simultaneously,the cost of producing tacos decreases.What is the new equilibrium,ceteris paribus?

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for beans.If the price of peas,a substitute for beans rises,what is the new beans equilibrium,ceteris paribus?

Suppose income increases.Choose the correct statement.

The relative price of a good is all of the following except

A decrease in the quantity supplied of a good is shown by

Use the figure below to answer the following questions. Figure 3.5.1 -The price of a good will rise if

Since 1980,there has been a dramatic increase in the number of working mothers.Based on this information alone,we can predict that the market for child care services has experienced

Use the figure below to answer the following questions. Figure 3.5.2 Original equilibrium at 1. -Refer to Figure 3.5.2,which represents the market for beer.If the price of pizza,a complement of beer rises,what is the new beer equilibrium,ceteris paribus?

The law of demand states that,other things remaining the same,

When the price of good A rises,the supply curve of good B shifts rightward.Which of the following statements are true?

Use the figure below to answer the following questions. Figure 3.4.2 -When a shortage occurs,there is a tendency for the

Use the table below to answer the following questions. Table 3.5.1 The Market for Car-Seat Heaters -Refer to Table 3.5.1.Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns.As a result,demand decreases by 100 heaters at each price.Simultaneously,the cost of production rises,and supply decreases by 100 heaters at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.

A shift of the supply curve for rutabagas occurs if there is

Use the table below to answer the following questions. Table 3.4.1 -Refer to Table 3.4.1.A shortage occurs if