Exam 3: Demand and Supply

-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 equilibrium quantity of wapanzo beans will be

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought .

An increase in the number of sellers of bikes will increase the

The price of chicken falls, causing the demand curve for beef to shift leftward, while at the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

When the demand for a good decreases, its equilibrium price and equilibrium quantity )

-The above table gives the demand and supply schedules for cat food. If the price is $3.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

In July 2008, gas prices rose as high as $5 per gallon. By October, prices had fallen as far as $2.30 per gallon. The most likely cause of this change is

An increase in price results in increase in supply but not an increase in the quantity supplied.

The price of a tomato increases and people buy more lettuce. You infer that lettuce and tomatoes are .

At a price of $4 in the above figure,

If, as people's incomes increase, the demand for a good increases, the good is called

-The above table gives the demand and supply schedules for compact discs. If the price of a compact disc is $28, there is a and the price of a compact disc will _ .

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

-The above figures show the market for oranges. Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

An increase the expected future price of a good

The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices.

Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer,

We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased. Which of the following events could be responsible for this?

What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?

When there is a shortage in the market, the quantity sold is