Exam 3: Supply and Demand

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 graph shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating pomegranates causes aging. Which panel BEST describes how this will affect the market for pomegranates?

The demand curve for running shoes has shifted to the right. What could have caused it?

A shift of a demand curve to the right, all other things unchanged, will:

An increase in income will always shift the demand curve to the right.

The horizontal summation of individual demand curves for a particular product, holding the quantity demanded constant, is:

A decrease in demand with no change in supply will lead to _____ in equilibrium quantity and _____ in equilibrium price.

Which of the following influences does NOT shift the supply curve?

The market equilibrium is found at the:

Customers used to pay inside before pumping gas. When gas stations introduced paying at the pump, thus decreasing production costs, there was a shift to the _____ in the _____ curve and _____ pressure on gas prices.

Use the following to answer questions : Figure: Demand for Coconuts -(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If coconuts are a normal good and consumers believe that the price of coconuts will rise significantly in the near future, it will be represented in the figure as a movement from:

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 Surgeon General announces that eating chocolate prevents heart disease. Which panel BEST describes how this will affect the market for chocolate?

Use the following to answer questions : Figure: Supply of Coconuts -(Figure: Supply of Coconuts) Look at the figure Supply of Coconuts. An improvement in the technology used to harvest coconuts (e.g., a faster, less expensive coconut picker) would be represented in the figure as a movement from:

Use the following to answer questions : Figure: The Market for Candy -(Figure: The Market for Candy) Look at the figure The Market for Candy. A surplus of the good will exist at a price of:

A decrease in the price of eggs will result in an increase in the:

If goods A and Z are complements, an increase in the price of good Z will:

Use the following to answer questions : Figure: The DVD Rental Market -(Figure: The DVD Rental Market) Look at the figure The DVD Rental Market. The figure shows the weekend rental market for DVDs in Collegetown. The equilibrium price for DVD rentals is _____ and the equilibrium quantity is _____.

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 half of the people in San Diego move to Colorado Springs. Which panel BEST describes how this will affect the market for houses in Colorado Springs?

Holding all other things constant, if ramen noodles are an inferior good to Vanessa, then as her income increases, her demand curve for ramen noodles:

Use the following to answer questions : -(Table: Supply of Lemonade) Look at the table Supply of Lemonade. If the price of lemonade is $1 per cup, the total quantity of lemonade supplied will be:

Use the following to answer questions : Figure: Demand for Coconuts -(Figure: Demand for Coconuts) Look at the figure Demand for Coconuts. If fish is a substitute good for coconuts and the price of fish increases, it will be represented in the figure as a movement from: