Exam 3: Market Demand and Supply

Farmers can produce wheat and/or rice. What will happen in the wheat market if there is an increase in the price of rice?

Exhibit 3-5 Supply for Tucker's Cola Data

Quantity supplied per week (millions of gallons)	Price per gallon
6	$3.00
5	2.50
4	2.00
3	1.50
2	1.00
1	.50

-Exhibit 3-5 shows the supply schedule for Tucker's Cola. Suppose there are four additional suppliers of cola in the market. When the price per gallon of cola is $1.50, the first supplier is willing to sell 10 million gallons, the second supplier is willing to sell 2 million gallons, the third supplier is willing to sell 5 million gallons, and the fourth supplier is willing to sell 0 gallons. The market quantity supplied of cola when the price is $1.50 is

When firms advertise their products, they are attempting to:

Assume that oranges and peaches can both be grown on the same type of land, a decrease in the price of peaches, other things being equal, will cause a(n):

​ -In Exhibit 3-7, if price happened to currently be $75 in this market, a _______ would result, causing a __________ in price.

Complementary goods are goods:

The price of a good will fall when:

How will an increase in lumber prices influence the home construction market?

Seller A has an upward-sloping supply curve and is willing to supply 400 units of a commodity at a price of $5 per unit. Seller A is now willing to supply 500 units at a price of $5 per unit. Evidently, seller A has experienced a(n):

Interpret what an increase in demand and an increase in supply mean. Discuss the causes of an increase in demand and an increase in supply. How are increases in demand and supply expressed graphically?

Which of the following must be true if good X is a normal good and income increases?

Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:

A shortage of product means a(n):

Supply curves slope upward because:

If there is a surplus in the oil market, then the price of oil will:

When economists say the quantity demanded of a product has increased, they mean the:

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:

A leftward shift of a supply curve is called a(n):

The most important characteristic of the equilibrium price is that it:

The "other things being equal" clause in the law of demand does  allow which of the following factors to change?