Exam 3: Supply and Demand

Which of the following statements about the demand for a normal good is the most accurate?

Which of the following describes what happens when the price of a Big Mac doubles,while the price of a Whopper increases by one-third?

Increasing government taxation or regulation of an industry generally increases the supply of goods.

The price of automobiles has increased sharply lately.As a result,what have automobile dealers noticed?

Ceteris paribus,if the price of lumber increases,we would expect an increase in the supply of lumber.

FIGURE 3-3 -Refer to Figure 3-3.Everyone has been raving about the newest summer blockbuster film.You decide to see a movie even though ticket prices have risen to $10 per ticket.You are not alone,as many students are waiting in line at the theatre,shifting the demand curve to D₁.How many tickets are the theatre owners now selling?

If the price of pizza falls,the demand for pizza will rise.

When the price of corn falls,the market supply of wheat (which can be grown using the same land)is likely to increase.

Which of the following would NOT shift the supply curve for salmon?

Vodka and whiskey are considered by consumers to be substitutes.What is the likely economic impact of a decrease in the price of whiskey?

What provides an explanation for the inverse relationship between price and quantity demanded?

Which of the following is NOT a characteristic of competitive markets?

FIGURE 3-2 -Refer to Figure 3-2.Two donut chains in your town are battling for customers.The manager of the Yum Yum Donut Shop,facing demand curve D₁,has changed donut prices from P₀ to P₁.What do the customers do as a result?

If there are widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada,what is the likely economic effect on the U.S.demand curve for beef from Canada?

Suppose the price of gasoline and other petroleum products declines sharply.Which of the following will most likely occur as a result of the lower petroleum prices?

According to the law of supply,what would we predict will occur when the price of a good increases?

If a product's price increases,what happens to quantity?

If the price of Nike⁽ᵗᵐ⁾ running shoes increased from $100 to $120,and the price of comparable New Balance⁽ᵗᵐ⁾ shoes increased from $100 to $130,how have the prices changed?

The law of supply is a federal regulation that prevents monopolies from charging too much.

What will occur in the market if producers expect the price of computers to fall in the near future?