Exam 3: Demand and Supply

The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period.

The equilibrium price is the price at which the quantity

-If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain.

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers. This change is shown in the figure as a shift from

Coffee and sugar are complements. If the supply curve of coffee shifts leftward because of poor weather, then there will be

The demand curve for a normal good shifts leftward if income ________ or the expected future price ________.

-The number of firms producing computer memory chips decreases. As a result, the price of a memory chip ________ and the quantity of memory chips ________.

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

If the price of chicken falls, then in the market for beef

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

Which of the following shifts the demand curve for movie downloads rightward?

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 are about 80,000 people on the waiting list to buy season tickets in 2015. This means that at the price in 2015, the

Which of the following statements is CORRECT?

Using supply-and-demand diagrams, show and explain the effects of the following events on the price of CD-Rs and the quantity of CD-Rs sold. For each event, identify which of the determinants of demand or supply is affected, how it influences demand or supply, and what happens to the equilibrium price and quantity. a)The price of a CD burner falls. b)Workers who make CD-Rs get a pay raise. c)Producers introduce new cost-saving technologies in their CD-R production plants. d)Consumers' incomes increase and CD-Rs are a normal good. e)Free peer-to-peer music exchange through the Internet becomes legal.

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a

-The above figure shows the market for hamburger. Which panel shows the effect of a new excise tax on all beef products?

-The above table gives the demand and supply schedules for Blu-ray discs. If the price of a Blu-ray disc is $8, there is a ________ and the price of a compact disc will ________.