Exam 3: Market Demand and Supply

An economist has conducted extensive research and has found that Jones Cola is a substitute for Tucker Cola. Ceteris paribus, the price of Jones Cola increases. The impact on the demand curve for Tucker Cola is a(n):

When the price of a good in a market is above equilibrium:

Equilibrium in a market exists when there is neither a surplus nor a shortage of the item.

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

Which of the following will increase the demand for large automobiles?

A decrease in the price of coffee, other things being equal, causes a(n):

A shift occurs in the supply curve for salt when:

Which of the following will cause a movement upward along a supply curve?

Tickets to the Indiana-Purdue basketball game are usually sold out in advance of game day. This suggests:

Assuming that dry cleaning is a normal good, an increase in consumer income, other things being equal, will:

A rightward shift of a demand curve is called a(n):

Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes down.

Assume that eggnog and cookies are complements. If the price of eggnog goes up, what happens to the demand for cookies?

A rightward shift in the demand curve is called a(n):

Assuming that clothing is a normal good, an increase in consumer income, other things being equal, would:

At any price below the equilibrium price, the:

Which of the following would decrease the supply of airline travel?

Two goods are considered substitutes only if a(n):

Assuming that automobiles are normal goods, a rise in consumer income, other things being equal, will cause:

The price of a good will rise when: