Exam 3: Supply and Demand

Use the following to answer questions: -(Figure: Shifts in Demand and Supply III) Use Figure: Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating asparagus slows the aging process. Which panel BEST describes how this will affect the market for asparagus?

If in a competitive market the quantity supplied exceeds the quantity demanded, we expect prices to:

Use the following to answer questions: -(Figure: Shifts in Demand and Supply II) Use Figure: Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating pomegranates causes aging. Which panel BEST describes how this will affect the market for pomegranates?

Which factor would cause an INCREASE in the supply of a good?

In the market for tacos, the factor that does NOT shift the supply curve to the left is:

Use the following to answer questions: -(Figure: The Supply of Online Movie Rentals) Use Figure: The Supply of Online Movie Rentals. A decrease in the price of online movie rentals would result in a change illustrated by the move from:

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. The equilibrium quantity and the equilibrium price are _____ bags per month and _____.

An inferior good is one for which a(n) _____ in buyers' incomes causes a(n) _____.

If coffee and tea are viewed as substitutes in consumption, then an increase in the price of coffee will increase the demand for tea.

The demand curve for monthly subscriptions to HBO has shifted to the right. What could have caused it?

A recent news story reported that the Organization of Petroleum Exporting Countries is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of vacation travel. What would be the combined effect of these two events on the summer market for gasoline?

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. If there is a decrease in supply of 2,000 bushels per period at each price, the equilibrium price and quantity will be _____ and _____ bushels per period, respectively.

Which factor ALWAYS results in an increase in price and quantity?

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. An improvement in the technology used to harvest coconuts (e.g., a faster, less expensive coconut picker) would be represented in the figure as a movement from:

Use the following to answer questions: -(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose the Surgeon General announces that eating chocolate prevents heart disease. Which panel BEST describes how this will affect the market for chocolate?

In the local market for coffee, if Joyce's Java and Everyday Joe's coffee shops go out of business, the _____ curve shifts to the _____.

After graduation from college, you might have an increase in your income from a new job. If as a result you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger is a(n) _____ good.

Use the following to answer questions: -(Figure: Supply, Demand, and Equilibrium) Use Figure: Supply, Demand, and Equilibrium. In the figure, there will be an excess supply of the good at a price of P1.

A competitive market occurs when there are many buyers and sellers of the same good.

Which factor will NOT cause an increase in the supply of cornflakes?