Exam 3: Demand and Supply

If the price of cars falls, the equilibrium price of gasoline will and the equilibrium quantity will .

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?

What leads to a decrease in the quantity demanded of a good or service?

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?

Jelly beans and popcorn are substitutes. A fall in the price of a bag of jelly beans will the demand for popcorn and the price of popcorn will .

Cupcakes and granola bars are substitutes in consumption. The price of a granola bar increases. As a result, the demand for

Throughout the 1990s, the price of sport utility vehicles (SUVs) rose and each year more were purchased. This experience suggests that

When graphing a demand curve for corn, we are showing the relationship between the quantity demanded of corn and the

If consumers but not producers expect that the price of soda will rise in November, the

If there is surplus of a good, then the quantity demanded _ _ the quantity supplied and the price will .

Throughout the 1990s, the price of four- wheel drive vehicles rose and each year more were purchased. This experience suggests that there were

Apple juice and orange juice are substitutes in consumption. Apple juice and apple sauce are substitutes in production. If the price of orange juice or the price of apple sauce , then the price of apple juice will .

-The above figure shows the market for hamburger. Which panel shows the effect of a new excise tax on all beef products?

-The equilibrium price in the above figure is

-In the above figure, a price of $35 per dozen would result in

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium price of beef will

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain.