Exam 4: Demand and Supply

Last year a very severe ice storm hit the north counties of New York state,and the states of Vermont and Maine.Electric poles were down and no one had power for days.It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.Using a supply and demand diagram,show the impact of the ice storm on the market for kerosene heaters.

Suppose the equilibrium quantity of movie tickets is 1000.If the demand curve shifts ________,the equilibrium quantity of movie tickets will ________.

What are substitutes in production?

Because of the high cost of fuel,railroads such as Union Pacific Corp and CSX Corp have increased the price they charge to haul freight.This change means that

What is the difference between quantity supplied and supply?

Which of the following increases the supply of a product?

Which of the following increases the supply of a good?

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

A change in the demand for apples could result from any of the following EXCEPT

If a freeze destroys oranges before they are harvested,the equilibrium price of an orange ________ and the equilibrium quantity ________.

An increase in both the equilibrium price and quantity can be the result of

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

Wheat is used to produce cereal.When the price of wheat falls,the

Demand curves slope ________ because as the price increases and other things remain the same,the quantity demanded ________.

If the price of a DVD falls, i.the demand curve for DVDs will shift rightward. ii.the demand curve for DVDs will not shift. iii.there will be a movement along the demand curve for DVDs.

-The graph illustrates the market for bottled water.When the price exceeds the equilibrium price,the quantity demanded is ________ the quantity supplied and the price of the good will ________.

If both supply and demand decrease by the same amount,the equilibrium price

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers.The equilibrium quantity of beef will

During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased.If the magnitude of the increase in demand was greater than the magnitude of the decrease in supply,then the equilibrium price of gasoline ________ and the equilibrium quantity ________.

-In the above figure,the shift in the supply curve from S to S₂ might reflect