Exam 2: Market Transactions: Demand and Supply Analysis

Figure 2.1 The Market for Calculators -Refer to Figure 2.1. Initially, the market is in equilibrium at a price of $25 and quantity of 15 calculators. If consumer tastes and preferences worsen for calculators, which of the following would best represent the new equilibrium price and quantity?

If buyers expect that the price of steel will increase soon due to a limit on imports, the immediate effect will be a(n)

When economists say that demand for dry cleaning services has decreased, they mean that

A rise in the price of corn gives farmers a greater incentive to

The demand curve for Pepsi Cola tends to shift to the left as the price of Coca Cola increases.

A decrease in the price of a movie ticket creates an increase in consumers' purchasing power, so that they can afford to buy more movie tickets. This is called the

An increase in the price of corn would cause the supply curve of corn to shift to the right.

If advances in technology make it possible for farmers to grow 25 percent more wheat per acre than they did in the past, the result would be an increase in the

Suppose a market is initially in equilibrium. If the demand for a good increases, and the price of that good stays the same, then we would expect a shortage to occur.

Which of the following would result in the demand curve for beer shifting to the left among college students?

When we draw a supply curve of pencils, which of the following is allowed to vary along the supply curve?

A tax placed on the sale of gasoline imposes an additional cost on gas stations, and the supply curve shifts leftward.

Which of the following goods are likely to be classified as complementary goods?