Exam 3: Supply and Demand

Use the following to answer questions: Figure: The DVD Rental Market -(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. The figure shows the weekend rental market for DVDs in Collegetown. The equilibrium price for DVD rentals is _____ and the equilibrium quantity is _____.

Use the following to answer questions: Figure: Shifts in Demand and Supply -(Figure: Shifts in Demand and Supply) Look at the 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 demand for meals at a local Applebee's will shift to the left if:

Use the following to answer questions: Figure: Supply, Demand, and Equilibrium -(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be an excess supply of the good at a price of P₁.

The supply curve for apartments in Oregon reflects how many apartments landlords are willing and able to offer for rent at a specific price.

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Look at the table The Demand for Chocolate-Covered Peanuts. If George, Barbara, and Dan are the only three buyers in the market and the price of a bag of chocolate-covered peanuts is $0.50, the total market quantity demanded is _____ bags per month.

Recent research suggests that certain plastic containers may have cancer-causing elements in them. As a result of this research, one would expect:

Use the following to answer questions: Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If a price of $10 temporarily exists in this market, a _____ of _____ bushels will result.

Use the following to answer questions: Figure: Shifts in Demand and Supply III -(Figure: Shifts in Demand and Supply III) Look at the figure Shifts in Demand and Supply III. The figure shows how supply and demand might shift in response to specific events. Suppose the technology for producing snowboards improves. Which panel BEST describes how this will affect the market for winter parkas, a complement in consumption of snowboards?

It is certain that the equilibrium quantity will rise when:

The market equilibrium is found at the:

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

Use the following to answer questions: Figure: Demand for DVDs -(Figure: Demand for DVDs) Look at the figure Demand for DVDs. A decrease in the rental price of DVD would result in a change illustrated by the move from:

If the economy booms and peoples' incomes rise, then the demand curve for a normal good like new houses will _____ and the equilibrium quantity of new houses produced will _____.

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

Which of the following illustrates the law of demand?

If the market for buffalo meat is in equilibrium, the price of buffalo meat will probably _____ in the near future.

The market for corn in Kansas is considered to be competitive. This means there are _____ buyers and _____ sellers of corn in Kansas.

The _____ apples will decrease when apple prices rise.

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