Exam 3: Supply and Demand

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 a drought destroys one-third of the nation's peanut crop. Which panel BEST describes how this will affect the market for peanuts?

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. A temporary price of $4 in this market would result in a _____ of _____ bushels per period.

An announcement that smoking will harm your ability to think clearly will MOST likely result in:

Use the following to answer questions: -(Table: The Market for Chocolate-Covered Peanuts) Use Table: The Market for Chocolate-Covered Peanuts. If the price of chocolate-covered peanuts is $0.80, there is a monthly:

If the demand for tires goes down when the price of gas goes up, then tires and gas are:

If supply is upward sloping, an increase in demand, all other things unchanged, will result in a(n) _____ in equilibrium price and a(n) _____ in equilibrium quantity.

Which statement is TRUE of a normal good?

The terms decrease in demand and decrease in quantity demanded can be used interchangeably.

If the supply and demand curves intersect at a price of $14, then any price below that would result in:

A negative relationship between quantity demanded and price is called the law of:

A technological advance in the production of automobiles will _____ the _____ automobiles.

Suppose there is an excess supply of chemical engineers in India. Over time, the salaries for chemical engineers will fall in India.

If goods A and Z are complements, an increase in the price of good Z will:

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 vitamin C tablets, which are a substitute in consumption for oranges?

The market for soybeans is initially in equilibrium, with an upward-sloping supply curve and a downward-sloping demand curve. Because of mad cow disease, producers decide to replace bone meal with soybeans in cattle feed. The likely effect is that the:

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the price of coconuts decreased, it would be represented in the figure as a movement from:

Use the following to answer questions: -(Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals. Which of the graphs illustrates what may happen in the market for online movie rentals if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost to the firm of producing online movie rentals falls?

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in:

A decrease in the price of eggs will result in a(n):

Consider the supply curve for cotton shirts. An increase in the price of cotton will: