Exam 3: Supply and Demand

If the market for buffalo meat is in equilibrium, the price of buffalo meat will probably _____ in the near future.

Use the following to answer questions : Figure: Shifts in Demand and Supply IV -(Figure: Shifts in Demand and Supply IV) Look at the figure Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel BEST describes how this will affect the market for new houses?

An increase in demand, all other things unchanged, will result in _____ in equilibrium price and _____ in equilibrium quantity.

The typical supply curve illustrates that:

The demand curve for season tickets for the Miami Dolphins is the graphical representation of the number of season tickets consumers want to buy at any given price.

Use the following to answer questions : Figure: Shifts in Demand and Supply IV -(Figure: Shifts in Demand and Supply IV) Look at the figure Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel BEST describes how this will affect the market for gasoline, which is made from oil?

According to the law of demand, if the price of steak increases in Rhode Island, the demand for steak will decrease in Rhode Island.

Explain the law of demand. What does it tell us about the shape of a demand curve?

The cost of sensors used in making digital cameras falls, while a successful ad campaign makes digital cameras more fashionable. As a result, the equilibrium price of digital cameras _____ and the equilibrium quantity _____.

Raclette is a popular wintertime dish in Switzerland. It is essentially melted Raclette cheese over boiled new potatoes. If the price of Raclette cheese decreased, we would expect to see:

Suppose people expect the price of MP3 players to rise next year. As a result of this expectation, people will most likely:

An increase in demand and a decrease in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. This set of observations can be the result of the _____ Blu-ray players shifting to the _____.

Which of the following will NOT cause an increase in the supply of cornflakes?

Use the following to answer questions : Figure: Shifts in Demand and Supply II -(Figure: Shifts in Demand and Supply II) Look at the figure Shifts in Demand and Supply II. The figure shows how supply and demand might shift in response to specific events. Suppose the technology for producing ethanol fuel improves. Which panel BEST describes how this will affect the market for ethanol?

If the supply and demand curves intersect at $47, then any price above that would result in:

It is certain that the equilibrium price will fall when:

It is certain that the equilibrium quantity will fall when:

In August 2005, Hurricane Katrina damaged or destroyed oil platforms in the Gulf of Mexico, refineries along the Gulf coast, and the pipeline infrastructure that transports oil and gas to customers across the eastern United States. The winter of 2006 was unusually cold in many parts of the country. How did these events affect the market for natural gas?

An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in: