Exam 3: Demand, Supply, and Market Equilibrium

(Consider This) Suppose that salsa manufacturers sell 2 million bottles at $3.50 in one year and 3 million bottles at $3 in the next year. Based on this information, we can conclude that the

In cases where sellers have a fixed number of units of a product to sell, the supply curve will be horizontal.

Which of the following factors is a "demand shifter" for new houses?

There is a surplus of tomatoes in the market. This implies that

The demand for most products varies directly with changes in consumer incomes. Such products are known as

Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to

Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived, he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by

The market system automatically corrects a surplus condition in a competitive market by

Which of the following will not cause a change in the demand for product A?

A higher price reduces the quantity demanded for a product because

A and B are substitute goods, but A and C are complementary goods. If the cost of producing A decreases, then the demand for

If consumer incomes increase, the demand for product X

Which of the following is most likely to be an inferior good?

Which statement is true about supply?

Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will

If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium

If products C and D are close substitutes, an increase in the price of C will

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. A decrease in the number of consumers of product X will

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a complement to X will

Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n)