Exam 3: Supply and Demand

Which of the following will NOT increase the demand for iced tea?

Wheat and oats are both used to make cereal and grown in the prairies. What would happen to the supply and demand of oats if the price of wheat were to rise?

What are five things that will shift a supply curve to the right?

Which of the following statements about the demand schedule for a good is the most accurate?

Which of the following would NOT cause an increase in the demand for cheese?

Which of the following would increase the demand for 35mm film?

What would happen to demand if consumers expect the price of computers to fall in the near future?

Ceteris paribus, if new manufacturers enter the computer industry, which of the following will occur?

Which of the following would NOT shift the supply curve for salmon?

The substitution effect helps to explain why demand curves are downward sloping.

When the price of automobile insurance increases sharply, what is the likely impact on the market for automobiles?

If the "nominal price" of a good has risen by 10 percent over a period of time, its relative price must also have risen.

What does a supply curve illustrate a direct relationship between?

Which of the following would reduce the supply of microcomputers?

If hot dogs are inferior goods, the demand for hot dogs will rise as consumer income falls.

How is the market demand curve determined?

According to the law of demand, what happens as the price of a good increases?

The income effect explains why people tend to purchase more of a good when their nominal income increases.

Define what a market is and provide three examples of where a market can be found.

What two effects support the law of demand?