Exam 3: Demand and Supply

-Refer to the above figure. At a price of two cents, the quantity of bubble gum demanded will be

Which of the following will NOT cause a shift in the demand for rewriteable DVDs?

The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor market experiences a

Suppose that the price of wheat is above its equilibrium price. You would expect to see

The price of a new textbook increased from $60 to $75 in one year, while the price of a used textbook increased by 25 percent. What happened to the relative price of a used textbook?

When producers anticipate that the price of their product will increase in the future,

The market supply curve can be derived by

-Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of

The price that we observe in the market is

According to the law of demand, an increase in the price of a good causes

An increase in the quantity demanded is shown by

The direct relationship between changes in price and changes in quantity supplied is

-According to the above figure, a shortage will occur at a price at which

-Refer to the above figure. A movement from Point A to Point B is caused by

-According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in

Which of the following would cause an increase in the market supply of mountain bikes?

If goods X and Y are substitute goods, then an increase in the price of Y, other things being equal,

The effects of a per-unit tax imposed on sales of an industry's product would likely include

Which of the following situations could generate a shortage?

When the current price of an item is greater than the item's market clearing price,