Exam 3: Demand, Supply, and Market Equilibrium

Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7 -Refer to Figure 3.7. A decrease in quantity demanded is represented by the movement

If coffee and tea are substitutes, then an increase in the price of coffee will result in an increase in the demand for tea.

Refer to the information provided in Figure 3.12 below to answer the questions that follow. Figure 3.12 -Refer to Figure 3.12. The supply curve for hula hoops shifts from S_{1 to} S₀. This could be caused by

Inferior goods are always substandard.

Refer to Scenario 3.1 below to answer the questions that follow. SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer. -Refer to Scenario 3.1. The number of stores renting DVDs is reduced by 25%, reducing the number of DVDs available. Which of the following would occur?

When the supply of Swiss cheese decreases while the demand for Swiss cheese increases, the equilibrium ________ of Swiss cheese will definitely ________, ceteris paribus.

Households are paid income for the resources they supply in an input market.

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers are a normal good. An increase in income will cause a movement from

Refer to the information provided in Figure 3.13 below to answer the questions that follow. Figure 3.13 -Refer to Figure 3.13. Assume hamburgers and hot dogs are substitutes. A decrease in the price of hot dogs will cause a movement from

Refer to the information provided in Figure 3.6 below to answer the questions that follow. Figure 3.6 -Refer to Figure 3.6. The number of DVDs Isabel rents per week decreases from 7 to 4. This is caused by

When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus,

Economists would classify the Boston Symphony Orchestra as a firm.

According to the law of supply, there is a

Demand for one item goes down when the price of another item goes up. These items must be

Related to the Economics in Practice on page 66: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the ________ of Baltimore newspapers to ________.

Refer to the information provided in Figure 3.14 below to answer the questions that follow. Figure 3.14 -Refer to Figure 3.14. If this market is unregulated and the price is currently $90, you would expect that the price of sunglasses would

Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?

If iPods and iTunes are complements, then a decrease in the price of iPods will result in a decrease in the demand for iTunes.

Refer to the information provided in Table 3.2 below to answer the questions that follow. Table 3.2 -Refer to Table 3.2. If the price per cheeseburger is $5, there is an excess

Refer to the information provided in Figure 3.8 below to answer the following questions. Figure 3.8 -Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the ________ for baseball caps, at a price of $10, quantity demanded would be 5.