Exam 3: Supply and Demand

One reason the demand curve slopes ________ is that as prices fall ________.

Suppose Bianca buys a used a textbook from Sebastian for $55. If Bianca's surplus from this transaction was $10, we can infer that:

Suppose quantity demanded is given by Qᵈ = 100 - P, and quantity supplied is given by Qˢ = 20 + 3P. In this case, equilibrium price, P*, and equilibrium quantity, Q*, are as follows:

Suppose one observes that when the price of peanut butter increases, the demand for jelly increases. One should conclude that:

Refer to the accompanying figure. The equilibrium price is ________, and the equilibrium quantity is ________.

Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?

Refer to the accompanying figure. Assume demand remains unchanged at D1. If supply shifts from S2 to S1, then the equilibrium price will ________ and the equilibrium quantity will ________.

A decrease in the price of pizza will lead to a(n):

Suppose you camped out in front of an electronics store to be one of the 200 lucky people able to purchase the latest gaming system. You bought the system for $350. Two weeks later you see that the same system can be sold on e-Bay for $600, so you sell your system. Your market role was as a:

Suppose we observe a decrease in the equilibrium price of tuna and an increase in the equilibrium quantity of tuna. This is best explained by:

The entire group of buyers and sellers of a particular good or service makes up:

If pencils and paper are complements for most consumers, then if the price of paper increases, you would expect:

Refer to the accompanying figure. A decrease in demand is represented by a shift from:

Refer to the accompanying figure. At a price of $3, there will be:

Refer to the accompanying figure. Assume demand remains unchanged at D1. If supply shifts from S1 to S2, then the equilibrium price will ________ and the equilibrium quantity will ________.

The demand curve illustrates the fact that consumers tend to purchase:

Refer to the accompanying figure. Suppose all the sellers in this market started out charging a price of $45 per unit. What is the most likely result?

If the demand for steak increases as income increases, then steak is a(n):

If an increase in the price of good X leads to a decrease in the demand for good Y, then:

When a slice of pizza at the student union sold for $2, Moe did not purchase any. When the price fell to $1.75, Moe purchased a slice each day for lunch. Thus, we can infer that Moe's reservation price for a slice of pizza is: