Exam 3: Supply and Demand

Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to news that next year's coffee harvest will be extremely good due to favorable weather conditions, you should expect:

In a free market, if the price of a good is above the equilibrium price, then;

Which of the following is NOT a characteristic of a market in equilibrium?

Refer to the given table. Relative to column C, column D represents: Price Per Unit Columu A Units Per Year Colum B Units Per Year \ 20 50 40 \ 30 60 50 \ 40 70 60 \ 50 80 70 \ 60 90 80  

You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:

Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:

If price is above the equilibrium price, then there will be:

Efficiency is an important social goal because:

Assume the demand for coffee increases and the supply of coffee decreases. Which of the following outcomes is certain to occur?

If the local slaughterhouse gives off an unpleasant stench, then the equilibrium quantity of meat will be ________ the quantity that maximizes total economic surplus.

Shelly purchases a leather purse for $400. One can infer that:

You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:

Refer to the accompanying figure. Suppose the solid line shows the current demand curve for coffee. In response to an announcement that much of next year's coffee crop has been destroyed by a storm in Brazil, you should expect:

Suppose that when the price of oranges is $3 per pound, the quantity demanded is 4.7 tons per day and the quantity supplied is 3.9 tons. In this case:

As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called:

When the supply curve shifts to the left and there is no change in demand:

Suppose a new study highlights the health benefits of eating bacon. At the same time, suppose the cost of producing bacon falls. Given these changes, you should expect to see:

All else equal, a decrease in the demand for oranges will lead to a(n)________ in equilibrium price and a(n)________ in equilibrium quantity.

If fast food is an inferior good then:

When the demand curve shifts to the right and supply doesn't change: