Exam 3: Supply and Demand

Suppose you bought a concert ticket from Ticketmaster for $50, but when you get to the concert, there are a large number of people waiting outside who offer to pay you more than $50 for your ticket. What is probably true?

If supply increases, then:

Refer to the accompanying figure. Moving from demand curve D2 to demand curve D1 could be caused by a(n):

Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is:

When the price of a good changes, the amount of that good that buyers wish to buy changes:

Suppose one knows two facts: first, the market for prescription drugs experiences chronic shortages and second, the government sets the price for prescription drugs. One can conclude that the government has:

Suppose the equilibrium price and quantity of ketchup fall. The most likely explanation for these changes is:

Suppose you observe a decrease in the equilibrium price and quantity of corn. Of the options listed below, this is best explained by:

If the production of oranges reduces global warming, then the equilibrium quantity of oranges will be ________ the socially optimal quantity.

Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original demand curve to the new demand curve?

When the current price of a good is below the equilibrium price:

A market equilibrium might not maximize total economic surplus because:

Refer to the accompanying figure. Assume the market is originally at point W. Movement to point Y is the result of:

Which of the following would cause an increase in quantity of wheat supplied?

Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 illustrates a(n):

Two goods are complements if:

An increase in both the equilibrium price and the equilibrium quantity of DVD players is best explained by:

Assume both the demand for beef and the supply of beef decrease. Which of the following outcomes is certain to occur?

If there is an excess supply of sport utility vehicles, then:

Refer to the figure below. There would be an excess supply of 25 at a price of ________.