Exam 3: Demand and Supply

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the "crunch enhancer." Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that is costs more to produce and consumers like it better?

If the demand for hamburgers decreases, the equilibrium price

When the price is less than the equilibrium price,

The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are

Jeep Cherokees are a normal good. If people's incomes increase, the direct result will be

When the price is below the equilibrium price, the quantity demanded

Georgine buys more sweaters when her income increases. For Georgine, sweaters are

-The above figures show the market for oranges. Which figure(s) shows the effect of a new government program that provides each public school child with an orange to start the day?

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bottle of soda?

-The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from

If consumers' incomes increase and the demand for bus rides decreases

If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will

A severe drought has damaged this year's lettuce crop. The initial effect on the lettuce market is a

An increase in technology for producing personal computers leads to

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

In 2008, the average Big Mac costs $2.87. Energy costs account for 54 cents of the total cost (Wired magazine, November 2008). When the price of energy soared in 2008,

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

If the supply of spring water decreases and at the same time the demand for spring water increases, the equilibrium price and the equilibrium quantity .

If the price of chicken falls, then in the market for beef,