Exam 3: Demand and Supply

If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________.

A price below the equilibrium price results in

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium

Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of

When both the demand for a good increases and the supply of the good increases, the equilibrium quantity definitely increases.

Until 2007, the price of sport utility vehicles (SUVs)rose and each year more were purchased. This experience suggests that

-The above table gives the demand and supply schedules for cat food. What is the equilibrium price and quantity?

The price of the steel used to produce car engines increases. How does this price hike affect the demand curve for cars?

-The above figure shows the market for gasoline. When a hurricane destroys a major refinery that refines oil into gasoline, the

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases so the demand for

In the market for bicycles, explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.

Auto workers negotiate a wage increase. How does this wage hike affect the supply of cars?

The opportunity cost of a hot dog in terms of hamburgers is the

When there is a shortage in the market, the quantity sold is

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

When does a shortage occur?

An increase the expected future price of a good

-The above figures show the market for oranges. Which figure(s)shows the effect of an increase in the price of bananas, a substitute for oranges?

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

The Market for Wapanzo Beans Quantity Demanded Price Quantity Supplied (millions of pounds (dollars per (millions of pounds per year) pound) per year) -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is a drought in the wapanzo bean growing region then supply will ________ and demand will ________.