Exam 3: Demand and Supply

Every spring, motorists do more driving than during the winter months. Every spring, the price of gasoline increases and the motorists buy more gasoline. This experience suggests that the

Which of the following will NOT shift the supply curve for pick- up trucks?

The negative slope of the demand curve indicates that there is relationship between the price and the quantity demanded.

If both the demand and supply increase, the equilibrium quantity

-Consider the demand curves for soft drinks shown in the figure above. Initially the economy is at point a. If people come to expect that the price of a soft drink will increase in the future, there will be a movement to a point such as

Which of the following is NOT held constant while moving along a supply curve?

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

An inferior good is a good for which demand

Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?

An increase in technology will shift the good's supply curve rightward.

When the price of a good falls, the income effect for a normal good implies that people buy

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, the technology used to produce wind turbines has resulted in

-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. In a normal year the price of wapanzo beans will be

During the mid- 2000s, the average price of a used car fell by nearly $500 and the quantity sold nation- wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.

An increase in the number of fast- food restaurants

-In the figure above, which movement reflects an increase in demand?

-Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is exceptionally good growing weather in the wapanzo bean growing region then supply will and demand will .

If the price of a candy bar is $1 and the price of a fast food meal is $5, then the

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises