Exam 3: Demand and Supply

-In the above figure, if D₂ is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?

The supply curve is graphed with the

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

In 2008, the average Big Mac costs $2.87. Energy costs account for 54 cents of the total cost (Wired magazine, November 2008). The price of energy fell in late 2008, so there was in supply which resulted in a _ in the price of Big Macs.

Walkmans play CDs. Producers of Walkmans expect that a new technology for producing MP3 players will be available next year. Walkman Watch asks you to predict the effect of the new technology on the market for Walkmans. You predict that

Cable television companies must pay increased charges by the networks for the programs the cable companies carry. As a result, the price of cable television rises. Thus

Which of the following definitely leads to a fall in the equilibrium price?

-In the figure, the equilibrium price is initially $3 per bushel of wheat. If suppliers come to expect that the price of a bushel of wheat will rise in the future, but buyers do not, the current equilibrium price will

What is the difference between quantity supplied and supply?

When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium price and the equilibrium quantity .

Personal computers are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of computers.

Which of the following shifts the supply curve for good X leftward?

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

Demand is the

Which of the following would increase the equilibrium price and increase the equilibrium quantity of used cars?

-The diagram above illustrates the market for apartments in Victoria, British Columbia. a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is shortage or surplus? b) What is the equilibrium rent and quantity of apartments?

-In the above figure, if the demand curve is D₂, then

-The above figures show the market for hamburger meat. Which figure(s) shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

A substitute is a good

-The above table gives the demand and supply schedules for compact discs. Based on the table, the equilibrium quantity and price of a compact discs is