Exam 3: Demand and Supply

Which of the following statements is correct?

An increase in the price of jet fuel will air flights and the equilibrium quantity of air flights will .

When both the demand for a good increases and the supply of the good increases, the equilibrium quantity definitely increases.

Which of the following shifts the demand curve for movie rentals rightward?

Young drivers often buy used cars. An increase in the legal driving age to twenty- one shifts the demand curve for used cars leftward, whereas lowering the age to fifteen shifts the demand curve rightward.

The "law of demand" predicts that, other things being equal,

Which of the following statements is TRUE?

You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that

A decrease in the demand for beef because of concerns over cholesterol results in

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point d?

The "law of supply" occurs because as the price of a good increases, the opportunity cost of

Which of the following would NOT shift the demand curve for turkey?

-In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the

Normal goods are those for which demand decreases as

Which of the following could increase the price of a used car and also increase the equilibrium quantity sold?

If the price of crude oil falls, the equilibrium price of gasoline and the equilibrium quantity .

The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the

The law of demand implies that if nothing else changes, there is

-The above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a in the market and the price will .