Exam 3: Supply and Demand

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 oranges?

The demand curve for season tickets for the Miami Dolphins is the graphical representation of the number of season tickets consumers want to buy at any given price.

Suppose that more police and security workers become aware that wearing bulletproof vests can protect them from injury and decide to start wearing bulletproof vests. At the same time, the price of ceramics used to produce the vests falls. The equilibrium price of bulletproof vests _____ and the equilibrium quantity produced _____.

Which of the following would NOT cause the supply curve to shift?

Assuming that desktop computers are normal goods, which of the following will NOT increase demand for desktop computers?

An announcement that smoking will harm your ability to think clearly will most likely result in:

Use the following to answer questions: Figure: Four Markets for DVDs -(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. If D₁ or S₁ is the original curve and D₂ or S₂ is the new curve, which of the graphs illustrates what may happen in the market for DVDs if there is an increase in the cost of a movie ticket at the local theater?

_____ illustrates a positive relationship between price and quantity.

An inferior good is one for which a(n) _____ in buyers' income causes a(n) _____.

If the quantity of housing supplied in a community is greater than the quantity of houses demanded, the existing price:

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 price of movie tickets (a substitute) would result in a change illustrated by the move from:

Use the following to answer questions: Figure: Supply of Coconuts -(Figure: Supply of Coconuts) Look at the 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:

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in:

An increase in supply is caused by:

Use the following to answer questions: Figure: The Market for Candy -(Figure: The Market for Candy) Look at the figure The Market for Candy. Equilibrium occurs at a price of _____, and the equilibrium quantity is equal to _____.

Use the following to answer questions: Figure: Four Markets for DVDs -(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. Which of the graphs shows what may happen if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if some of the stores that rent DVDs close?

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 consumer incomes increase. Which panel BEST describes how this will affect the market for designer boots, a normal good?

Use the following to answer questions: Figure: Demand and Supply of Gasoline -(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. What might cause the supply curve to shift from S₂ back to the initial supply curve S₁?

Why do many clothing stores have big after-Christmas sales on their merchandise?

In much of the country, homeowners choose to heat their houses with either natural gas or heating oil. Which of the following would cause an increase in the demand for natural gas?