Exam 2: Demand and Supply: an Introduction

The following table shows the quantity demanded and quantity supplied of grapefruits (in millions of kilos): -Refer to the table above to answer this question.If buyers think that the price of grapefruits is going to rise,causing the demand to change by 6 million kilos,what will be the new equilibrium price and quantity?

What is the name of those products whose demand will increase as a result of an increase in income?

What is the term for the quantities which producers are willing and able to sell per period of time at various prices?

All of the following,except one,would cause an increase in demand for a normal product.Which is the exception?

The product is a normal product. -Refer to the graph above to answer this question.Which of the following statements is correct?

Which of the following is a result of the greater availability of electronic communication?

-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?

What does the term "demand" refer to?

-Refer to the above graph to answer this question.What could cause the movement from point B to point C?

What is an inferior product?

Which of the following best describes a normal product?

Consider the demand and supply schedules above for a limited number of hotels in the downtown business district area of a particular city. -Refer to the above information to answer this question.If two new buyers enter this market,what are the new equilibrium values of price and quantity?

What is the effect on an inferior product if income increases?

-Refer to the above graph to answer this question.What are the implications if the price of this product is $8?

All of the following except one will cause the demand for a normal product to decrease.Which is the exception?

Consider the effects of each event outlined in the following table on the market for orange juice in Canada.Place a ( ), ( )or (-)under the appropriate heading to indicate whether there will be an increase,decrease,or no change in demand (D),supply (S),equilibrium price (P)and quantity traded (Q).Assume orange juice is a normal good.

-Refer to the graph above to answer this question.What does the distance Q1 - Q3 represent?

-Refer to the above graph to answer this question.How could you describe the movement from point C to point D?

The above information contains supply and demand data for luxurious apartments in a downtown waterfront area. -Refer to the above information to answer this question.If two potential buyers decide to leave this market,what are the new equilibrium values of price and quantity?

What is the effect of a shortage?