Exam 3: Supply and Demand

When the price of automobile insurance increases sharply, the likely impact on the market for automobiles is:

Refer to the table below.If these three firms represented the entire market, how many mid-sized autos would be supplied at a price of $30,000? Price for Mid-Sized Auto GM Ford Chysler Market \ 22,000 10,000 8,000 4,000 \ 24,000 12,000 10,000 5,000 \ 26,000 15,000 12,000 7,000 \ 28,000 19,000 14,000 10,000 \ 30,000 24,000 16,000 14,000

Coca-Cola bottlers increased their prices as the price of sugar (an important ingredient in producing Coke) rose sharply in the late 1980s.Under these circumstances, the increase in the price of Coke occurs as a result of a(n):

Based on widespread reaction to the threat of the H1N1 virus, the likely effect on the demand curve for hand sanitizers would be

Which of the following is not held constant when moving along a product's demand curve?

Along a supply curve:

Which of the following would be most likely to cause an outward shift of the demand curve for electricity?

In 1975 a pocket calculator cost more than $50; in 1990 a calculator of the same quality cost less than $10.Which of the following explanations is most consistent with these facts?

Which of the following would most likely increase the price of chicken, a normal good?

Skateboards International of Long Beach, California, was able to sell 20,000 skateboards at a price of $60 in 2008.In 2009, it is able to sell only 12,000 of the same skateboards at a price of $60.Evidently, Skateboard International has experienced a(n):

Which of the following is true?

Table 3-E Price per gallon Quantity Demanded Quantity Supplied of (thousands of gallons) gasoline (thousands of gallons) \ 4.50 600 2,000 \ 4.25 700 1,900 \ 4.00 800 1,800 \ 3.75 950 1,700 \ 3.50 1,200 1,600 \ 3.25 1,500 1,500 \ 3.00 1,800 1,400 \ 2.75 2,100 1,300 \ 2.50 2,400 1,200 -Refer to Table 3-E.According to the data in the above table, the equilibrium price of gasoline is:

If the price of apples rises and the quantity of apples exchanged decreases, then we know that there cannot have been a:

Assume the demand schedule for cookies is downward sloping.If the price of cookies falls from $2.50 to $2.25 per dozen:

Which of the following explains why the quantity of a good demanded decreases when its price increases?

How will a decrease in price tend to affect supply?

A shortage currently exists in the market for strawberries.Which of the following statements is correct?

The supply curve shows:

The price of peanut butter falls and as a result the demand for jelly increases.We can conclude that:

An increase in both equilibrium price and quantity is a consequence of: