Exam 4: Demand and Supply

Suppose that tattoos gained immense popularity with retired people as well as college students.This gain in popularity best reflects which of the following influences on buying plans?

-Pizza is a normal good.Which figure above shows the effect of a decrease in consumers' incomes?

Suppose the government imposes a small carbon tax on automakers.But the price of gasoline has doubled due to a Middle East crisis which has reduced oil production.In the market for autos, these changes mean that supply and demand have both changed with the effect on the demand larger than the effect on the supply.The result is that the price of autos will ________ and the number of autos sold will ________.

If the demand and supply both increase equally, then the equilibrium price ________ and the equilibrium quantity ________.

When does a shortage occur?

-Pizza is a normal good.In the above figure, the shift in the demand curve from D to D₂ can be the result of

Which of the following increases the demand for a good or service?

If a higher price for wheat decreases the quantity of corn being produced, which of the following describes what has occurred?

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?

When moving along a demand curve, which of the following changes?

If the price of carrots is below the equilibrium price, the

"Other things remaining the same, if the price of a good rises, the quantity supplied of that good increases." This sentence describes a

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

Which of the following definitely results in a product's equilibrium price rising?

Consider the market for wheat.If there is an improvement in harvesting technology,

Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) 100 50 100 80 55 80 50 60 60 20 100 40 -Using the data in the table above, at the price of $80 a phone,

-The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?

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 the

Price (dollars per ton of paper) Quantity Supplied (tons of paper per week) 10 15 15 26 20 34 25 35 30 34 -The table above represents a possible supply schedule for a paper company.The law of supply is valid for every price from ________ to ________.