Exam 3: Demand and Supply

Table 3-2 -According to Table 3-2,at a price of $4 per unit

When the price of coffee beans increased in the mid-1970s,restaurants that raised the price of a cup of coffee experienced a decrease in demand for donuts because donuts and coffee are

Table 3-1 -In table 3-1,what is the market quantity demanded at a price of $8?

The money price of a good is also known as its

When the term "price" is used in the law of demand,price means

Use a graph to answer each of the following: How is the equilibrium price in a market determined? What happens if the current price is above the equilibrium price? What happens if the current price is below the equilibrium price?

Figure 3-3 -In Figure 3-3,the lowest price that would persuade suppliers to offer quantity Q₂ for sale is

A demand schedule is a way of recording

Table 3-2 -In a free market economy,the market clearing (equilibrium)price in Table 3-2 would be

When demand decreases and supply increases

The law of demand states that,ceteris paribus,

Which one of the following goods would most likely be an inferior good?

Table 3-2 -In the market described by Table 3-2 there will be a shortage of the product if price is below ________.

When demand decreases and supply increases,it is certain that

Table 3-1 -In Table 3-1,at a price of $8,market quantity demanded would be ________ units.

Table 3-1 -In Table 3-1,how many additional CDs could a retailer sell by cutting the price from $18 to $16?

Using a graph,explain how expectations of future price changes affect the demand curve for a product.

In any given market,prices are determined by

If other things are held constant,an increase in wages earned by workers in the steel industry will cause

A decrease in demand is shown graphically by