Exam 3: Supply and Demand

Betsy graduates from college,where she earned $3,000 a year working part-time,and takes a job as a third grade teacher,where she now earns $30,000 per year.About the same time she received her first paycheck,her bicycle was stolen.With her old income she would have purchased a new bike but with her new income she purchased a new car.Therefore,

Oil and Natural Gas can each be used as a source of energy and are,for many purposes interchangeable.Which of the following best explains the increase in the price of natural gas that accompanied the increase in the price of oil during the 1990-1991 Persian Gulf War?

-In Figure 3-8,using the supply and demand curves denoted S₁ and D₂,respectively,the equilibrium price and quantity are

-In supply and demand schedules in Figure 3-10,the equilibrium price of a pair of socks is

Which of the following statements about demand is correct?

If two goods are substitutes,then

At the market equilibrium

If the same dairy can produce either whole milk or skim milk,an increase in the profitability of whole milk results in a(n)

With other things constant,the supply schedule for a particular good indicates the quantities

If two goods are often consumed together,they are

Which of the following is the best example of a perfectly competitive market?

An excess supply of rice in a competitive market would indicate that

If an increase in a person's income causes that person to buy more apples,then apples are

Which of the following could lead to an increase in the equilibrium quantity of a good?

An increase in the price of a good results in a(n)

The most likely reason that oil prices spiked during 2007-2008 was because

Which of the following would most likely cause an increase in the demand for oatmeal?

Of the following,which is most likely to be a normal good?

If prices are free to rise and fall,and supply and demand cross at a positive price,quantity combination,neither excess demand nor excess supply can persist in a market.

If Holly's demand for fast food decreases as her income rises,then