Exam 3: Demand and Supply

Price (dollars per pound of cat food) Quantity demanded (tons of cat food per year) Quantity supplied (tons of cat food per year) 1.00 52 15 1.50 46 26 2.00 43 34 2.50 40 30 3.00 35 44 -The above table gives the demand and supply schedules for cat food.If the price is $1.00 per pound of cat food,will there be a shortage,a surplus,or is this price the equilibrium price? If there is a shortage,how much is the shortage? If there is a surplus,how much is the surplus? If $3.00 is the equilibrium price,what is the equilibrium quantity?

-The above figure shows the market for pizza.Which figure shows the effect of an increase in the price of a complement such as soda?

Using supply-and-demand diagrams,show and explain the effects of the following events on the price of CD-Rs and the quantity of CD-Rs sold.For each event,identify which of the determinants of demand or supply is affected,how it influences demand or supply,and what happens to the equilibrium price and quantity. a) The price of a CD burner falls. b) Workers who make CD-Rs get a pay raise. c) Producers introduce new cost-saving technologies in their CD-R production plants. d) Consumers' incomes increase and CD-Rs are a normal good. e) Free peer-to-peer music exchange through the Internet becomes legal.

If the price is above the equilibrium price,then there is a

Blank DVDs and prerecorded DVDs are substitutes in production.An increase in the price of a blank DVD will lead to

Consider the market for broccoli.If the price of a pound of broccoli increases,what happens to the supply of broccoli?

If there exists a shortage in the market for snowmobiles,then the price of a snowmobile will

If the price of lumber rises,then,in the market for sawdust,

If a decrease in the price of gasoline increases the demand for large cars,then

When graphing a demand curve for corn,we are showing the relationship between the quantity demanded of corn and the

An increase in the number of suppliers in a market results in a

As the price of a pound of peanuts falls,the

The equilibrium price will rise and the equilibrium quantity might increase,decrease,or stay the same when the

A substitute is a good

Coffee and sugar are complements.If the supply curve of coffee shifts leftward because of poor weather,then there will be

Which of the following shifts the supply curve of broccoli?

The law of demand states that the quantity of a good demanded varies

The "law of demand" states that,other things remaining the same,the quantity demanded of any good is

-The figure above shows supply curves for soft drinks.Suppose the economy is at point a.An increase in the price of a soft drink is shown as a movement from point a to

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce.This fact illustrates