Exam 3: Supply and Demand: Theory

Resource X is necessary to the production of good Y.If the price of resource X rises,the _____________ curve for good Y will shift ____________ resulting in a(n)_____________ in the equilibrium price of Y and a(n)____________ in the equilibrium quantity of Y.

Exhibit 3-8 -Refer to Exhibit 3-8.A shortage exists at any price below

Suppose that for a given good demand increases and supply decreases at the same time.If demand increases by a lesser amount than supply decreases,then equilibrium price __________ and equilibrium quantity __________ for that good.

"As the price of apples goes up,the demand for apples goes down." The author of this statement

Exhibit 3-8 -Refer to Exhibit 3-8.A surplus exists at any price above

There are two universities,A and B,in a city.Tuition rises at University A and,as a result,the demand for attending University B rises.It follows that educational services at the two universities are

On a supply-and-demand diagram,consider a price for which the horizontal distance to the supply curve exceeds the horizontal distance to the demand curve.There is a __________ at that price and the current price must be __________ the equilibrium price.

Explain why the price of a good tends to rise when there is a shortage of the good.Give a hypothetical numerical example to help support your answer.

If the quantity demanded of good X is greater than the quantity supplied of good X,then the market for good X is in disequilibrium.

Exhibit 3-3 ​ -If the supply of and demand for a product decrease at the same time,then equilibrium

One can determine producers' surplus if the minimum selling price and the _____________ are known.

If the demand for a good falls by less than the supply of the good rises,then the good's equilibrium price will __________ and its equilibrium quantity will __________.

Exhibit 3-5 -Refer to Exhibit 3-5.In the market shown,if equilibrium was originally at point Z and the new equilibrium is now at point V,this change may have been caused by

A demand schedule is a numerical tabulation of the ___________________ of a good at different ____________________.

One reason that helps to explain the law of supply is the law of

Which of the following is descriptive of the law of diminishing marginal utility?

Which of the following statements is true?

If Max's demand for hot dogs falls as his income rises,then for Max hot dogs are

Exhibit 3-10 -A(n)_______________ good is one in which as income rises or falls,there is no change in the demand for the good.

If the U.S.government imposes a more restrictive import quota on Japanese video gaming systems,the ____________ curve for Japanese video gaming systems in the U.S.will shift ___________.