Exam 3: Demand and Supply

Use the following to answer question(s): The Determinants of Demand and Supply -(Exhibit: The Determinants of Demand and Supply) The exhibit shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's orange crop.Which panel best describes how this will affect the market for oranges?

Use the following to answer question(s): Simultaneous Shifts in Demand and Supply -(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market, following the adjustment shown:

A decrease in the price of a good will, all other things unchanged, result in:

When economists study the behavior of sellers, they are studying:

A surplus will cause pressure on the price to fall.

Use the following to answer question(s): Demand and Supply-Determinants -(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's grapefruit crop.Which panel best describes how this will affect the market for Vitamin B-12 tablets, which are a substitute for grapefruit?

Use the following to answer question(s): Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) When the supply curve shifted from the initial equilibrium to the new intersection of supply and demand at a price of ________ and quantity of 400, this could have resulted from ________ .

An increase in price will result in a decrease in the quantity supplied.

The intersection of the supply and demand curves indicates:

Use the following to answer question(s): Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium price?

If the price in the market for a commodity is below the equilibrium price, the:

An increase in the demand for medical services caused by an increase in the number of people over 65 is most likely attributable to which demand shifter?

An increase in supply of a good is caused by:

The primary difference between a change in demand and a change in the quantity demanded is:

Use the following to answer question(s): Demand and Supply -(Exhibit: Demand and Supply) What is the equilibrium quantity?

If two goods are complements, a fall in the price of one will lead to an increase in demand for the other.

Which of the following most correctly states the law of demand?

Use the following to answer question(s): Demand and Supply Schedules for a Good -(Exhibit: Demand and Supply Schedules for a Good) The equilibrium price is ________ and the equilibrium quantity is ________.

A decrease in supply, with no change in demand, will lead to ________ in equilibrium quantity and ________ in equilibrium price.

A decrease in the price of a factor of production will lead to an increase in the supply of goods that use the factor in production.