Exam 3: Demand and Supply

Use the table below to answer the following questions. Table 3.5.3 Demand and supply schedules for designer sport t-shirts at CoolU -Refer to Table 3.5.3.A new store opens up on the edge of campus,Great Wild North Sportswear,which has the capacity to do as much business as all the existing businesses.The quantity of t-shirts supplied doubles at each price.This would be represented as a

The demand curve is P = 700 - 20QD.The supply curve is P = 300 + 20QS.At market equilibrium,the equilibrium quantity is ________ and the equilibrium price is ________.

Use the table below to answer the following questions. Table 3.1.1 -Refer to Table 3.1.1.Between 2010 and 2011,the price of coffee relative to the price of tea ________ while the price of coffee relative to the price of cola ________.

A decrease in the quantity supplied is shown by a

An increase in income

The demand curve is P = 800 - 25QD.The supply curve is P = 500 + 25QS.At market equilibrium,the equilibrium quantity is ________ and the equilibrium price is ________.

Consider the market for cell phones.Suppose the price of a cell phone falls.Explain the effect of this event on the quantity of cell phones demanded and on the demand for cell phones.

Suppose we observe a rise in the price of good A and an increase in the quantity of good A bought and sold.Which one of the following is a likely explanation?

If a producer can use its factors of production to produce either good A or good B,then a rise in the price of A

Use the information below to answer the following questions. Fact 3.5.1 The market for coffee is initially in equilibrium.Pepsi is a substitute for coffee;cream is a complement of coffee.Consider the market for coffee.Assume that all ceteris paribus assumptions continue to hold except for the event listed. -Refer to Fact 3.5.1.If coffee is a normal good,then a decrease in income will

The following events occur one at a time: I.The price of crude oil rises. II.The price of a car rises. III.All speed limits on highways are abolished. IV.Robots cut car production costs. The quantity of gasoline supplied ________.

If we observe a decrease in the equilibrium quantity of good A,we know that

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 increases.What is the new equilibrium,ceteris paribus?

Use the table below to answer the following questions. Table 3.5.3 Demand and supply schedules for designer sport t-shirts at CoolU -Refer to Table 3.5.3.In a television interview,Joe Cool shows off his designer sport t-shirt,setting off a new craze that doubles business at the sportswear establishments.This would be represented as a

If the number of suppliers of good Y increases,then

Use the table below to answer the following questions. Table 3.5.3 Demand and supply schedules for designer sport t-shirts at CoolU -Refer to Table 3.5.3.Suppose that the price of a designer sport t-shirt is $6.The market has ________ leading to ________.

Which of the following shifts the supply curve for good X leftward?

If the market for Twinkies is in equilibrium,then

There have been severe problems in the Atlantic fishing industry,with large falls in the fish stocks.As a result,

Use the figure below to answer the following questions. Figure 3.2.1 -Which one of the following statements best characterizes point B in Figure 3.2.1?