Exam 3: Supply and Demand Theory

Exhibit 3-13 -----------------------------Quantity Demanded------------------------------------- Assume that Jose, Kaitlyn, Leah, and Maria are the only buyers in this market. -Refer to Exhibit 3-13. Each individual consumer's demand curve is ________________ sloping and the market demand curve is _________________ sloping.

Exhibit 3-15 -Refer to Exhibit 3-15. In Exhibit 3-15,

Which of the following is descriptive of the law of diminishing marginal utility?

In moving along a demand curve for good X, which of the following is NOT held constant?

The "voluntary bumping plan" used by airlines to resolve the problem of overbooked flights was developed by economist

The sum of consumers' surplus and producers' surplus is maximized at equilibrium.

Which of the following will not shift a supply curve?

Exhibit 3-14 -Refer to Exhibit 3-14. At a price of $15, there is a ____________ of ____________ units of good X.

At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says that Marta's demand for books has decreased. Is Luz correct?

Which of the following pairs of goods would be most likely to be substitutes?

The law of demand states that price and quantity demanded are

If the demand for a good falls by less than the supply of the good rises, then the good's equilibrium price will __________ and its equilibrium quantity will __________.

Exhibit 3-14 -Refer to Exhibit 3-14. At a price of $11, there is a ____________ of ____________ units of good X.

Describe one of the two reasons given in the textbook to help explain why price and quantity demanded are inversely related.

One major reason for the law of demand is that

In the supply-and-demand diagram of the market for peanut butter, the equilibrium point has moved up and to the right. What could have caused this?

Exhibit 3-15 -Refer to Exhibit 3-15. In Exhibit 3-15,

Exhibit 3-15 -Refer to Exhibit 3-15. In Exhibit 3-15, at fee F₁ there is a

When the price of Toyota Corollas rises, the demand for Corollas falls, ceteris paribus

Exhibit 3-6 -Refer to Exhibit 3-6. If an increase in income causes the demand for good X to shift from D₁ to D₃, then good X is