Exam 3: Supply and Demand

A farmer can grow either apples or oranges. An increase in the price of apples ______ the opportunity cost of growing oranges so that the supply curve of oranges shifts ______.

What does the law of supply state?

The supply curve shows the relationship between:

If the price of computers ______, the demand for printers will ______.

In the week before Hurricane Katrina, the price of flashlights rose in New Orleans because of:

The quantity supplied is the quantity that:

If you are willing to pay $8 for a $6 burrito, what is your consumer surplus if you buy it?

A market has a supply equation as follows: Q_s = P. The market price for the product is $50. Calculate the dollar amount of producer surplus in this market and illustrate your answer graphically.

Recall the discussion in your textbook about the supply curve for oil. What explains why the supply curve for oil is positively sloped?

A change in price is reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve.

If, for a given amount of a good or service, willingness to pay decreases, then:

A higher opportunity cost of producing a good increases the supply of that good.

If prices rise, what happens to producer surplus (all other things being equal)?

Use the following to answer questions: Figure: Bananas -(Figure: Bananas) Refer to the figure. If the price of bananas is $10 a pound, which number is closest to the number of pounds that suppliers will supply?

If the price of gas is expected to rise sharply in the future, all else the same, the demand for gas today will:

Which of the following are likely to be complements?

In the market for fertilizer, an:

The demand curve for oil shows:

An inferior good is one that:

If the price of _____ rises, all else the same, the demand for large SUVs will decrease.