Exam 3: Supply and Demand

Use the following to answer questions: -(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's orange crop. Which panel BEST describes how this will affect the market for oranges?

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. A surplus of 210 bags of chocolate-covered peanuts per month exists if the price is _____ per bag.

The market for lemonade is in equilibrium and the price of lemons rises. In the lemonade market _____ will _____, _____ the price and _____ the quantity.

Use the following to answer questions: -(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. At a rental price of $3, there will be:

The market price of airline flights increased recently. Some economists suggest that the price increased because of an increase in the number of business travelers. They believe that, in the market for flights:

Consider the market for corn. What happens if there is an increased demand for corn tortillas and, at the same time, a new corn seed becomes available that dramatically increases the yield per acre?

A decrease in supply of good X means:

Use the following to answer questions: -(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. If the rental price of Blu-ray discs rises from $5 to $7:

If goods A and B are substitutes, a decrease in the price of good B will:

Which factor would cause a DECREASE in the supply of a good?