Exam 3: Supply and Demand

A decrease in supply is caused by:

Which of the following would NOT cause the supply curve to shift?

An increase in the price of contact lenses will increase the supply of contact lenses.

Because of an increase in the price of wheat, an important ingredient in the production of bread, combined with an increase in the number of people consuming bread:

Assuming that desktop computers are normal goods, which of the following will NOT increase demand for desktop computers?

A beneficial technological change is developed in the production of cranberries. At the same time, scientists discover that cranberries have significant health benefits. This will result in:

The law of demand implies that:

You read that college tuition is rising every year, and yet more students attend college every year. Isn't this a violation of the law of demand?

Market equilibrium occurs when:

A negative relationship between quantity demanded and price is called the law of:

Substitutes in production suggest that a producer with a fixed set of resources initially will need to reduce production of one good when the producer:

If Benjamin considers sushi to be a normal good and if his income increases by 20 percent, his purchases of sushi will:

Rice and potatoes are substitutes in consumption. If the price of rice rises and there is a bumper crop of potatoes, in the market for potatoes one would expect the equilibrium price to _____ and the equilibrium quantity to _____.

If the input costs associated with supplying gasoline increases in Wisconsin, the supply of gasoline in Wisconsin will decrease.

Use the following to answer questions: Figure: Demand and Supply of Gasoline -(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. What might cause the supply curve to shift from S₂ back to the initial supply curve S₁?

Which of the following is NOT a determinant of supply?

High-fructose corn syrup, which is derived from corn, is an important ingredient in the production of many soft drinks. If the price of corn increases, one would expect:

The market price of airline flights increased recently. Some economists suggest that the price increased because several airlines went out of business. They believe that in the market for flights:

Use the following to answer questions : -(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate-Covered Peanuts. The equilibrium quantity and the equilibrium price are _____ bags and _____.

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in: