Exam 3: Demand and Supply

Use the following to answer questions Exhibit: The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If the price of chocolate-covered peanuts is 60 cents, the quantity demanded by George is ________ bags per month.

A decrease in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.

Given the events listed below that take place in the corn market, decide if demand or quantity demanded changes and determine the direction of change. a. The economy prospers and incomes rise dramatically. b. The price of corn falls. c. The price of pork increases, and corn is a significant input in the pork market. d. The price of oats, a substitute for corn, falls. e. The price of corn increases. f.A new fertilizer comes on the market that leads to tremendous increases in corn productivity.

Use the following to answer questions . Exhibit: Demand Shifters and Supply Shifters -(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing snowboards improves. Which panel best describes how this will affect the market for winter parkas, a complement of snowboards?

A decrease in price will lead to an increase in the quantity demanded.

Use the following to answer questions Exhibit: The Demand for Chocolate-Covered Peanuts Quantity Demanded (bags per month) -(Exhibit: The Demand for Chocolate-Covered Peanuts) If George, Barbara, and Dan are the only three buyers in the market, and the price of a bag of chocolate-covered peanuts is 50 cents, the total market demand is ________ bags per month.

Use the following to answer questions . Exhibit: Demand and Supply Shifters -(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing handheld calculators improves. Which panel best describes how this will affect the market for handheld calculators?

If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:

Use the following to answer questions . Exhibit: Demand and Supply of Wheat -(Exhibit: Demand and Supply of Wheat) A price of ________ will result in a ________ , and a price of ________ will result in a ________ .

List and explain the demand shifters.

Use the following to answer questions . Exhibit: Shifts in Demand and Supply -(Exhibit: Shifts in Demand and Supply) Which graph best illustrates what happened in the desktop calculators market when handheld calculators were invented and came on the market?

Use the following to answer questions . Exhibit: Demand and Supply Shifters -(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose a wet and sunny year increases the nation's sweet pea crop by 20 percent. Which panel best describes how this will affect the market for frozen sweet corn, a substitute for sweet peas?

Which would not cause the supply curve to shift?

Use the following to answer questions . Exhibit: The Determinants of Demand and Supply -(Exhibit: The Determinants of Demand and Supply) The exhibit shows how supply and demand might shift in response to specific events. Suppose a fall frost destroys one-third of the nation's orange crop. Which panel best describes how this will affect the market for Vitamin C tablets, which are a substitute for oranges?

An increase in supply is caused by:

Use the following to answer questions. Exhibit: Demand and Supply Schedules for a Good -(Exhibit: Demand and Supply Schedules for a Good.) If there were an increase in demand by 50 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

Use the following to answer questions . Exhibit: Demand and Supply Curves -(Exhibit: Demand and Supply Curves) A price of $25 per unit will result in:

Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.

If the current price is less than the market clearing or equilibrium price, we would expect:

A shortage results from a current price being below the equilibrium price.