Exam 3: Demand and Supply

The "income effect" in the market for aspirin means that

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans.

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________.

General Electric (GE)produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is

For a "change in the quantity supplied" but not "a change in supply" to occur, there must be a

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

Many Southern farmers face a choice between planting peanuts or cotton. In 2014, farmers anticipated higher prices for cotton. In the market for peanuts in 2014, there would be ________ in the supply of peanuts, which leads to ________ in the price of peanuts and ________ in the quantity of peanuts.

Doctors find that one aspirin per day reduces the risk of heart attacks. Demand for aspirin will

When the demand for blue jeans increases, what happens next?

-Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market? Suppose the current price is $12.00. What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.

When people's incomes increase, the demand for a good increases. The good is called

The equilibrium quantity will decrease and the price might rise, fall, or stay the same when the

-The above figures show the market for hamburger meat. Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in demand?

The law of demand implies that if nothing else changes, there is

At prices above the equilibrium price, what occurs?

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________.

-A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

An increase in the number of suppliers in a market results in a