Exam 3: Demand and Supply

Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of gasoline, holding other things constant, will cause which of the following to occur?

Distinguish between a change in quantity supplied and a change in supply.

The supply curve has a

-According to the above table, a surplus exists when

Market supply is obtained by

Which of the following occurs when a market is in equilibrium?

How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?

According to the law of demand, an increase in the price of a good causes

Which of the following will NOT lead to a decrease in demand for a normal good?

If more foreign auto plants relocate to the United States, we would expect

Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result

If there is a decline in the price of milk, an input in the production of ice cream, then there will be a(n)

The demand curve is downward sloping because

There is a 15 percent increase in the price of lumber used by a firm that builds new homes. This causes

Demand is defined as

An increase in demand is shown graphically by

When the term "price" is used in the law of demand, price refers to

Which of the following will cause the demand curve for beer to shift right?

-Refer to the above figure. The rightward shift of the curve indicates

Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes