Exam 3: Supply and Demand

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. A temporary price of $2 in this market would result in a _____ of _____ bushels.

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

In the market for canned pinto beans, _____ will increase if income increases and if pinto beans are a(n) _____ good.

Use the following to answer questions: Figure: Supply, Demand, and Equilibrium -(Figure: Supply, Demand, and Equilibrium) Look at the figure Supply, Demand, and Equilibrium. In the figure, there will be an excess supply of the good at a price of P₁.

A technological advance in the production of automobiles will _____ the _____ automobiles.

If the price of hamburger decreased, it would probably result in _____ in the demand for hamburger buns.

Use the following to answer questions : Figure: Supply of Coconuts -(Figure: Supply of Coconuts) Look at the figure Supply of Coconuts. An expectation on the part of coconut suppliers that the price of coconuts will be significantly higher in the very near future would be represented in the figure as a movement from:

If consumer tastes for electric cars increase over the next 10 years, we will see an increase in the demand for electric cars, higher electric car prices, and an increase in the equilibrium quantity of electric cars.

For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes. Such goods are known as:

An increase in the price and an ambiguous change in quantity is most likely caused by:

If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:

When the price of gas goes down, the demand for tires goes up. A likely possibility is that tires and gas are:

A newspaper story recently reported that the price of new cars, a normal good, has decreased and the quantity of new cars sold has dropped. The new price and quantity could have been caused by:

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. If there is an increase in demand of 2,000 bushels at each price, the equilibrium price and quantity will be _____ and _____ bushels, respectively.

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

Over the past several years, consumers have had an increasing interest in getting tattoos. This means that the _____ for tattoos has _____.

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 consumer incomes decrease. Which panel BEST describes how this will affect the market for used clothing, an inferior good?

If goods A and B are substitutes, a decrease in the price of good B will:

A decrease in the price of eggs will result in:

A market is composed of three individuals, Nicholas, Benjamin, and Alexander. Their individual demand schedules are given below and are as follows: Based on this information, which of the following market demand schedules accurately portrays this market?