Exam 3: Demand and Supply

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will

-In the above figure, if D? is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

The law of demand states that, other things remaining the same, the higher the price of a good, the

If the money price of hats rises and no other prices change, the I.relative price of a hat rises. II.opportunity cost of a hat rises.

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

What is the law of demand?

-A market research team has come up with the demand and supply schedules for gasoline in Motorville in the table above. Use these data to analyze the situation in the market for gas in Motorville. a)Draw a figure showing the demand curve for gasoline and the supply curve of gasoline. What are the equilibrium price and quantity? b)Suppose the price is $3.30. Describe the situation in the market and explain how the market adjusts. Now suppose the price is $3.00. Describe the situation in the market and explain how the market adjusts. c)The market research report also predicts that a rise in the price of crude oil will decrease the quantity of gas supplied by 20,000 gallons a week at each price. Suppose the price of crude oil does rise. Use your figure to show how this will affect the market for gas. How will the market adjust? What will be the new equilibrium price and quantity?

-The above figures show the market for hamburger meat. Which figure shows the effect of a decrease in the price of a substitute like hot dogs?

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased. You predict that the demand for coffee

If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will

Which of the following shifts the supply curve for good X leftward?

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.

-The above figures show the market for oranges. Which figure(s)shows the effect of a nation-wide consumer boycott of eating oranges?

-Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point c represents

An increase in demand combined with no change in supply

Which of the following increases the demand for a normal good?

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There were about 70,000 people on the waiting list to buy season tickets in 2010. Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought ________.