Exam 3: Supply and Demand Theory

Exhibit 3-11 -Refer to Exhibit 3-11. Fill in blanks (E) and (F) respectively with "Exchange" or "No Exchange"to indicate whether or not exchange would take place at the given prices.

Exhibit 3-2 Good X ​ ​ -Refer to Exhibit 3-2. Which of the following would result in a movement from point A on D₁ to point B on D₂?

Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following EXCEPT

On the basis of the law of demand, it is more likely that a person will lose his temper when the price of losing his temper is low than when it is high.

If the workers of a firm successfully negotiate an increase in wages, which of the following is most likely to happen?

If rice is an inferior good, a decrease in income will cause the equilibrium price of rice to rise.

If a demand curve shifts rightward, this means

A simultaneous decrease in the demand and the supply of good X always leads to a decrease in the price of good X.

A change in price will lead to a change in __________ and to a change in __________, while a change in government subsidies will lead to a change in __________ and a change in the number of buyers will lead to a change in __________.

A vertical supply curve represents:

Exhibit 3-4 -Refer to Exhibit 3-4. If this is a competitive market, price and quantity will gravitate toward

A shortage in the bread market can cause the price of bread to rise.

Exhibit 3-12 ---------------------------------------------------Quantity Supplied -------------------------------------------- Assume that Aline, Bentley, Calvin, and Daniel are the only sellers in this market. -Refer to Exhibit 3-12. Fill in blanks (A) and (B) respectively with the market quantity supplied at each given price.

Exhibit 3-6 -Refer to Exhibit 3-6. If D₁ is the relevant demand curve, an increase in the price of good X may cause

Exhibit 3-5 -Refer to Exhibit 3-5. In the market shown, if equilibrium was originally at point V and is now at point Z, the new equilibrium price is __________ it was originally and the new equilibrium quantity is ____________ it was originally.

Which of the following illustrates the law of demand?

An advance in technology in the production of good X causes

At a price for which the quantity supplied exceeds the quantity demanded, a __________ is experienced, which pushes the price __________ toward its equilibrium value.

A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:

Exhibit 3-12 ---------------------------------------------------Quantity Supplied -------------------------------------------- Assume that Aline, Bentley, Calvin, and Daniel are the only sellers in this market. -Refer to Exhibit 3-12. Each individual seller's supply curve is ________________ sloping and the market supply curve is _________________ sloping.