Exam 3: Demand and Supply

-The above table gives the demand and supply schedules for compact discs. Suppose that the price of a compact disc player increases, resulting in the demand for compact discs decreasing by 8,000 units at all prices. What are the new equilibrium quantity and equilibrium price of compact discs?

The price of a DVD rental is currently $1.50 and the price of a Blu- ray rental is $2.50. If the price of a DVD rental increases by $0.50, the relative price a Blu- ray rental

When a market is in equilibrium,

As the price of a pound of peanuts falls, the

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will and the equilibrium quantity will .

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?

Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

A relative price is the product of two money prices.

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

-The above figure represents the market for oil. Because of the development of a new deep sea drilling technology the

Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a

If the price of chocolate chip cookies rises, then

List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor.

As the opportunity cost of a good decreases, people buy

During the real estate boom of the mid- 2000s, the prices of new and existing homes rose year after year yet people purchased more homes year after year. Can this outcome be explained as an exception to the law of demand?

The price of a film camera is $150 and the price of a similar digital camera is $300. What is the relative price of the digital camera?

Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?

The demand for a good increases when the price of a substitute and also increases when the price of a complement .

The supply curve slopes upward when graphed against , because of .

-Using the data in the above table, at the price of $80 a phone, a