Exam 3: Demand and Supply

A change in which of the following shifts the demand curve?

The "law of demand" predicts that, other things being equal

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in population?

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

Gruel is an inferior good. Hence, a decrease in people's incomes

-The above figures show the market for oranges. Which figure(s)shows the effect of new successful advertising campaigns to eat more oranges?

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

When supply and demand both increase, the

Explain why a relative price is an opportunity cost.

As the price of a pound of peanuts falls, the

-In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the number of suppliers would be shown as a movement from point a to a point such as

The quantity demanded is

-The above table gives the demand and supply schedules for cat food. If the price is $1.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

An increase in the price of the cheese used to produce pizza shifts the supply curve of pizza ________ and shifts the demand curve for pizza ________.

-In the above figure, an increase in the quantity demanded is represented by a movement from point d to

Joe pays $8,000.00 in tuition. The 8,000 dollar tuition Joe pays is an example of what economists call

-In a market, at the equilibrium price

Which of the following statements is TRUE?

A relative price is the