Exam 3: Demand and Supply

Wants, as opposed to demands

An economist says: "The demand curve has two interpretations." What does the economist mean?

The cost of producing aspirin increases simultaneously as doctors find that one aspirin per day reduces the risk of heart attacks. The supply of aspirin ________ and the demand for aspirin ________ so that the equilibrium price of aspirin ________.

The opportunity cost of a good is the same as its

What happens to the demand for Xbox games if the price of an Xbox falls?

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

The price of jet fuel falls. This fall shifts the

If macaroni and cheese is an inferior good, then a decrease in income will result in

-The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from

-The above figures show the market for hamburger meat. Which figure(s)shows the effect of a nation-wide strike by butchers and meat-packers?

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the "crunch enhancer." Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that is costs more to produce and consumers like it better?

For normal goods which of the following explains why demand curves slope downward?

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?

Which of the following decreases the supply of popcorn?

Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?

If macaroni and cheese is an inferior good, an increase in income will

When supply decreases and demand does not change, the equilibrium quantity ________ and the equilibrium price ________.

A ticket to see the Radio City Rockettes costs $90. You buy a ticket for $30 to see the New York Jets play football. The money price for

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.