Exam 3: Demand and Supply

The "law of supply" states that, other things remaining the same, firms produce

-The above figures show the market for gasoline. Which figure shows the effect of motorists increasing the number of times they take the bus to work rather than driving their own cars?

For "an increase in the quantity demanded" but not "an increase in demand" to occur, there must be a

Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?

-The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price

-The above table shows the demand schedule and supply schedule for chocolate chip cookies. What is the equilibrium quantity and equilibrium price for chocolate chip cookies?

Which of the following shifts the supply curve of broccoli?

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

-The above figures show the market for oranges. Which figure(s)shows the effect of a new government program that provides each public school child with an orange to start the day?

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

-In the above figure, a price of $15 per dozen for roses would result in

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

A supply curve shows the relation between the quantity of a good supplied and

-In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

-The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?

In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

If the price of chocolate chip cookies falls, then

An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets.

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are ________.