Exam 3: Demand and Supply

A shortage will occur whenever

Figure 3-2 -If Figure 3-2 represents a free market economy,market price and quantity will adjust to equilibrium at

When the price of a good falls,there will be

Table 3-2 -According to Table 3-2,a surplus exists when

In the long run,the number of producers in an industry may change.If the number of farmers growing soybeans increases,ceteris paribus,then

An increase in the price of coffee,holding other things constant,will

If other factors remain constant,the Canadian government's lowering of taxes on consumer electronic products would result in

Figure 3-5 -In Figure 3-5,suppose a change takes place and as a result a new equilibrium occurs at point D.The change could have been caused by

For a normal good,an increase in consumer income will lead to I.A movement down the demand curve II.An outward shift in the demand curve III.An increase in supply

If there is a shortage in a free market,then

The law of demand states that,other things being equal,

Which one of the following statements is FALSE?

Figure 3-2 -In Figure 3-2,if 40 million litres were supplied,the maximum price at which they could be sold is

Figure 3-1 -In Figure 3-1,if both A and B are inferior goods,the effect of an increase in income is best shown by the

The price of a movie increased from $5 to $7 while the price of renting a movie video increased from $2 to $3.50.The price of attending a movie relative to the price of renting a video

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

Assume that beef and chicken are substitutes.Given a downward sloping demand curve for beef,a fall in beef prices will result in ________.