Exam 3: Demand and Supply

Demand is a schedule that shows

-Refer to the above figure. Which of the following statements is true?

For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II) a rightward shift in the demand curve III) a reduction in supply

Sarah gets a salary increase of 20 percent. Before her raise, she purchased 5 pounds of hamburger and 1 pound of beef stew a month. After her raise, she consumes 2 pounds of hamburger and 3 pounds of beef stew a month. If everything else is held constant, we know that

In the long run, the number of firms in an industry may change. If the number of firms increases, then

We are given the individual demand curves for all of the people that consume Good Y. Which statement is true about the market demand curve for Good Y?

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

A demand curve represents a(n)

Other things being equal, the relationship between price and quantity supplied is

-In a free market economy, the market clearing (equilibrium) price in the above table would adjust to

-According to the above figure, equilibrium is at point

Suppose that goods X and Y are substitutes and the price of good Y falls. We would then expect

Suppose that the demand curve for apples is downward sloping and the price per bushel increases from $6.50 to $7.50. We would then expect

By summing the quantities demanded by individuals at each price we obtain the

A demand curve

-Refer to the above table. At a price of $450, there is an

The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT

An excess quantity supplied can be corrected by

When income increases, the demand curve for an inferior good

Which of the following products are likely to be complementary goods?