Exam 3: Supply and Demand

Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would expect to see:

If the input costs associated with supplying gasoline increases in Wisconsin, the supply of gasoline in Wisconsin will decrease.

After graduation many students' demand for used cars decreases. This may be because used cars are considered a normal good to college graduates.

The market for corn in Kansas is considered to be competitive. This means there are _____ buyers and _____ sellers of corn in Kansas.

A new wonder diet that results in a dramatic weight loss sweeps through the United States. The key to the diet is to eat large amounts of red meat (beef) but no poultry or carbohydrate-rich foods. As millions of Americans switch to the new diet, we can expect a(n) _____ in the _____ beef, leading to a shift to the _____ in the _____ curve for beef and _____ beef prices.

A new wonder diet that results in a dramatic weight loss sweeps through the United States. The key to the diet is to eat large amounts of red meat (beef) but no poultry or carbohydrate-rich foods. As millions of Americans switch to the new diet, we can expect a(n) _____ in the _____ poultry, leading to a shift to the _____ in the _____ curve for poultry and _____ poultry prices.

The market price of airline flights increased recently. Some economists suggest that the price increased because several airlines went out of business. They believe that, in the market for flights:

If the price of corn rises, we generally expect the:

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

Which factor would NOT cause the supply curve to shift?

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

An increase in the price and an ambiguous change in quantity is MOST likely caused by:

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 $6, there will be:

In much of the country, homeowners choose to heat their houses with either natural gas or heating oil, both of which are normal goods. Which factor would cause an increase in the demand for natural gas?

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Use Table: The Demand for Chocolate-Covered Peanuts. If George, Barbara, and Dan are the only three buyers in the market and the price of a bag of chocolate-covered peanuts is $0.80, the total market quantity demanded is _____ bags per month.

Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124 units. If the price of good X is $2:

When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which statement provides one possible explanation for this phenomenon?

When the price of lamps increases, the:

What is the difference between a shortage and scarcity?

Suppose there is an excess demand for water in Florida. This means that we can expect the price of water to increase in Florida over time.