Exam 3: Demand and Supply

Use the following to answer question(s): Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) Given the equilibrium after a change in supply from S₁ to S₂:

Assuming that pizza is a normal good, if students' income at your college increases substantially, there would be:

Use the following to answer question(s): The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts.) A shortage of 210 bags of chocolate-covered peanuts exists if the price is ________ cents per bag.

The price of apples falls.What happens in the market for apple pies?

A shift in the demand curve to the left, all other things unchanged:

The price of eggs might go up because:

A market surplus occurs if the:

Use the following to answer question(s): Demand and Supply of Gasoline -(Exhibit: Demand and Supply of Gasoline) The initial price and quantity (at intersection of S₁ and D) in equilibrium are:

Use the following to answer question(s): Demand and Supply Curves -(Exhibit: Demand and Supply Curves) The lowest price per unit that sellers would be willing to accept for 50 units is:

If a market reflects a shortage and prices are allowed to move:

Use the following to answer question(s): The Market for Chocolate-Covered Peanuts -(Exhibit: The Market for Chocolate-Covered Peanuts) The equilibrium quantity and the equilibrium price are ________ bags and ________ cents.

Use the following to answer question(s): Demand Shifters and Supply Shifters -(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose the technology for producing snowboards improves.Which panel best describes how this will affect the market for winter parkas, a complement of snowboards?

Every day for the past two years you've had ham and cheese on a whole wheat bagel for lunch at Bungalow Bob's Bagel Boutique.However, the price of whole wheat bagels has risen by 10 cents so today you decide to have ham and cheese on a rye bagel.In this case, whole wheat and rye bagels are best considered:

Use the following to answer question(s): Demand and Supply Shifters -(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose consumer incomes increase.Which panel best describes how this will affect the market for dress ties, a normal good?

The slope and location of the demand curve depend on:

The price of cotton rises.What happens in the market for cotton shirts?

In the 1990s, the Monks of St.Benedict's the Monks determined that their ________ were ________ in the egg and cookie business, so they ________ .

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 consumer incomes increase.Which panel best describes how this will affect the market for used furniture, an inferior good?

A shortage or a surplus can exist when the current price is equal to the equilibrium price.

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