Exam 3: Demand, Supply, and Market Equilibrium

In 2007, the price of oil increased, which in turn caused the price of natural gas to rise.This can best be explained by saying that oil and natural gas are

Which of the following is most likely to be an inferior good?

Other things being equal, the law of demand suggests that as

An effective price floor will

As a result of a fall in the price of gasoline, consumers can afford to buy more gasoline for more driving trips.This is an illustration of

A price floor means that

A decrease in supply of X increases the equilibrium price of X, which reduces the demand for X and automatically returns the price of X to its initial level.

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.A decrease in the number of consumers of product X will

A surplus of a product will arise when price is

(Consider This) Dynamic pricing refers to

Over a period of time, the equilibrium price of a good increases and the quantity decreases.All of the following could account for this situation, except

Allocative efficiency involves determining

If producers must obtain higher prices than before to produce a given level of output, then the following has occurred.

There will be a surplus of a product when

(Consider This) Uber’s dynamic pricing

Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased.From this information we can conclude that

When the price of oil declines significantly, the price of gasoline also declines.The latter occurs because of a(n)

In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate.

(Consider This) Suppose that salsa manufacturers sell 2 million bottles at $3.50 in one year and 3 million bottles at $3 in the next year.Based on this information, we can conclude that the

If the demand for electronic readers and tablets increases, then their supply will increase as price rises.