Exam 3: Demand and Supply

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

Which of the following shifts the demand curve for hot dogs leftward?

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers. Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased. You predict that the demand for coffee

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and

When the price of a pizza decreases from $14 to $12

If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium

If workers who make DVDs get a pay raise, the equilibrium price of a DVD ________ and the equilibrium quantity of DVDs ________.

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

What is the difference between a money price and a relative price? When the demand and supply model predicts that the price of coffee will rise, is the model predicting that the money price rises or the relative price rises?

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought

If the U.S. Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks, what would happen to the equilibrium price and quantity of grapefruit juice?

-In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from

To say that "supply increases" for any reason, means there is a

If the quantity supplied exceeds the quantity demanded, then there is

An economist says: "The supply curve has two interpretations." What does the economist mean?