Exam 3: Supply and Demand

In the market for grass-fed beef, what would cause a price increase?

An increase in _____ will have an ambiguous (uncertain) effect on price.

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 shows 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 of buying content for online movie distributors like Apple (i.e., the price that Apple pays for the online content to sell to consumers) decreases?

Which factor is likely to cause a rightward shift in the demand for home-delivered pizza?

If supply is upward sloping, an increase in demand with no change in supply will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price.

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts decreased, it could be represented in the figure as a movement from:

Use the following to answer questions: -(Figure: The Demand and Supply of Wheat) Use Figure: The Demand and Supply of Wheat. If a price of $8 temporarily exists in this market, a _____ of _____ bushels per period will result.

Assuming that tablets are normal goods, which factor will NOT increase demand for tablets?

An ambiguous change in price and a decrease in quantity are MOST likely caused by:

_____ illustrates a positive relationship between price and quantity.

Customers used to pay inside before pumping gas. When gas stations introduced paying at the pump, thus decreasing production costs, there was a shift to the _____ in the _____ curve and gas prices _____.

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 movies sold by movie producers to rental outlets like Amazon and Apple would result in a change illustrated by the move from:

The demand curve for running shoes has shifted to the right. What could have caused it?

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 fall frost destroys one-third of the nation's grapefruit crop. Which panel BEST describes how this will affect the market for vitamin B₁₂ tablets, which are a substitute in consumption for grapefruit?

The cost of sensors used in making digital cameras falls, while a successful ad campaign makes digital cameras more fashionable. As a result, the equilibrium price of digital cameras _____ and the equilibrium quantity _____.

Assume that corn is an input in the production of beef but not in the production of pork. Further, beef and pork are substitutes in consumption. A decrease in the price of corn will _____ the supply of beef and _____ the demand for pork.

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 price of lumber falls dramatically. Which panel BEST describes how this will affect the market for new houses?

Use the following to answer questions: \\ -(Figure: Supply of Coconuts) Use Figure: Supply of Coconuts. An expectation on the part of coconut suppliers that the price of coconuts will be significantly higher in the very near future would be represented in the figure as a movement from:

French fries and hamburgers are complements in consumption. Suppose the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium price of french fries _____ and the equilibrium quantity _____.

When milk consumption decreased, a survey firm wanted to know what was going on, so they interviewed people and found that people thought that rising milk prices were making it hard to justify their milk purchases. This suggests that what is going on is a: