Exam 3: Demand, Supply, and Market Equilibrium

Last year the price of corn was $3 a bushel and the quantity of corn demanded was 10 million bushels. This year the price of corn was $4.00 a bushel and the quantity demanded was 12 million Bushels. Is this evidence that the law of demand does not apply to corn?

An increase in the equilibrium quantity of hybrid cars would be caused by which of the following?

Assuming conventional supply and demand curves, changes in the determinants of both supply and demand will generally

Economists use the term "demand" to refer to

Refer to the above graph, which shows the market for beef where demand shifted from D1 to D2. The change in equilibrium from E1 to E2 cannot be a result of

A decrease in demand and an increase in supply will

In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts. Which diagram illustrates the effect on the natural-gas market of the widespread use of "fracking," Or hydraulic fracturing, by gas-drilling companies?

Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the

Refer to the above graph with three demand curves. A "decrease in demand" would be illustrated as a change from

Which of the following would best be classified as a complement for new houses/homes?

Suppose that in each of four successive years, producers sell more of their product and at lower prices. This could be explained

Black markets are associated with

When an economist says that the demand for a product has increased, this means that

Refer to the four graphs above. Select the graph that best shows the changes in demand and supply in the market specified in the following situation: the market for corn, if gasoline producers Use more ethanol from corn and good weather during the growing season yields a bumper harvest.

Refer to the diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market the indicated shift in demand may have been caused by

Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that

The "dynamic pricing" model used by the ride-sharing firm Uber, along with a few other firms, illustrates which of the following?

Refer to the above graph with three demand curves. An increase in price, other factors constant, would cause a change from

A market that achieves productive efficiency is necessarily producing the quantity of goods most desired by society.

If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium