Exam 3: Demand and Supply

All other things unchanged, a tax on a product that leads to an increase in the cost of production would:

A decrease in supply is caused by:

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

If economists say, "the price is too high," they mean that:

A decrease in the demand for eggs caused by concerns over cholesterol is most likely attributable to which demand shifter?

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

Two goods are substitutes if:

Price changes for complements and substitutes have the same effect on demand.

Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .

There is equilibrium in the market when:

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, the change in supply may have resulted from:

The theory underlying demand and supply curves assumes that, all other things unchanged, the primary variable that assures the equality of the quantities demanded and supplied is:

If demand and supply both decrease:

Consumer preferences, prices of related goods, income, and demographic characteristics are often termed:

A shortage occurs at any price above the equilibrium price.

A decrease in supply is caused by:

Use the following to answer question(s): Shifts in Demand and Supply -(Exhibit: Shifts in Demand and Supply) Which diagram best illustrates what would happen in the handheld calculator industry if elementary schools encouraged their use?

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

Supply is best defined as the:

Use the following to answer question(s): Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) A factor that may have changed supply from S₁ to S₂ is: