Exam 3: Supply and Demand

The market for corn in Kansas is considered to be competitive. This means there are _____ buyers and _____ sellers of corn in Kansas.

A decrease in the price of a good will result in:

After graduation many students' demand for used cars decreases. This may be because used cars are considered a normal good to college graduates.

Use the following to answer questions : Figure: Four Markets for DVDs -(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. Which of the graphs shows what may happen in the market for DVDs if D₁ or S₁ is the original curve and D₂ or S₂ is the new curve and if the cost of producing DVD players increases?

If there is an excess supply of a good, the problem of scarcity does not apply to that good.

Use the following to answer questions : Figure: Supply of Coconuts -(Figure: Supply of Coconuts) Look at the figure Supply of Coconuts. If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts decreased, it would be represented in the figure as a movement from:

Good X and good Y are related goods. Holding everything else constant, if the price of X decreases and the demand for Y increases, X and Y are probably:

Use the following to answer questions : Figure: The Demand and Supply of Wheat -(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. What is the equilibrium quantity in this wheat market?

A competitive market occurs when there are many buyers and sellers of the same good.

You notice that the price of Blu-ray players falls and the quantity of Blu-ray players sold increases. You suspect that _____ Blu-ray players shifts to the _____.

Use the following to answer questions : -(Table: The Market for Chocolate-Covered Peanuts) Look at the table The Market for Chocolate-Covered Peanuts. A surplus of 210 bags of chocolate-covered peanuts exists if the price is _____ per bag.

Use the following to answer questions: Figure: Shifts in Demand and Supply -(Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's orange crop. Which panel BEST describes how this will affect the market for vitamin C tablets, which are a substitute in consumption for oranges?

An increase in demand with no change in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.

The demand for a good will increase if:

An increase in supply is caused by:

The law of demand states that other things equal, as the price:

Use the following to answer questions : Figure: Demand for DVDs -(Figure: Demand for DVDs) Look at the figure Demand for DVDs. A decrease in the rental price of DVD would result in a change illustrated by the move from:

The price of microchips used to produce computers falls. As a result, the equilibrium price of computers _____ and the equilibrium quantity _____.

Use the following to answer questions : -(Table: Competitive Market for Good Z) Look at the table Competitive Market for Good Z. If the price of good Z is $15, there will be:

The terms decrease in demand and decrease in quantity demanded can be used interchangeably.