Exam 3: Supply and Demand

If there is an excess supply of a good, the problem of scarcity does not apply to that good.

In the market for corn tortilla chips, what would cause a price increase?

If the price of hamburger decreased, it would probably result in _____ in the demand for hamburger buns.

Suppose people expect the price of MP3 players to rise next year. As a result of this expectation, people will most likely:

If the United States increases tariffs on imports of lumber from Canada (which raises the price of lumber in the United States), the equilibrium price of new homes in the United States will _____ and the equilibrium quantity of new homes in the United States will _____.

Good X and good Y are substitutes. Holding all other things constant, this means that when the price of good X increases, the:

When a market is in equilibrium, the quantity:

Use the following to answer questions: Figure: Shifts in Demand and Supply II -(Figure: Shifts in Demand and Supply II) Look at the figure Shifts in Demand and Supply II. The graph shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's grapefruit crop. Which panel BEST describes how this will affect the market for vitamin B₁₂ tablets, which are a substitute in consumption for grapefruit?

"In 2008, air travel decreased substantially despite significant reductions in ticket prices." If this information is correct, it indicates that the law of demand did not apply to air travel in 2008.

A beneficial technological change is developed in the production of cranberries. At the same time, scientists discover that cranberries have significant health benefits. This will result in:

Which of the following will raise the price of milk?

In the market for tacos, each of the following shifts the supply curve to the left EXCEPT:

Substitutes in production suggest that a producer with a fixed set of resources initially will need to reduce production of one good when the producer:

Use the following to answer questions: Figure: The Supply of DVD Rentals -(Figure: The Supply of DVD Rentals) Look at the figure The Supply of DVD Rentals. A decrease in the price of DVDs sold by movie producers to rental stores would result in a change illustrated by the move from:

Use the following to answer questions: -(Table: The Demand for Chocolate-Covered Peanuts) Look at the table The Demand for Chocolate-Covered Peanuts. Barbara demands 20 bags of chocolate-covered peanuts when the price of each bag is:

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

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 illustrates what may happen in the market for DVDs if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost of producing DVDs falls?

If the price of a commodity increases, you can expect the:

Use the following to answer questions: -(Table: Competitive Market for Good Z) Look at the table Competitive Market for Good Z. If the supply curve for good Z is linear, it can be expressed as:

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. You suspect that _____ Blu-ray players shifts to the _____.