Exam 3: Demand and Supply

Long-distance travel by bus is an inferior good. As peopleʹs incomes increase and other things remain the same, you predict that the

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the ʺcrunch enhancer.ʺ 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?

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.

Auto workers negotiate a wage increase. How does this wage hike affect the supply of cars?

The ʺlaw of demandʺ is illustrated by a

The Market for Wapanzo Beans Quantity Demanded $\quad$$\quad$$\quad$$\quad$$\quad$ Price $\quad$$\quad$$\quad$ Quantity Supplied (millions of pounds $\quad$$\quad$$\quad$$\quad$$\quad$ (dollars per $\quad$ (millions of pounds peryear) $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ pound) $\quad$$\quad$$\quad$ peryear) Case 1 Case 2 Case 3 Case A Case B Case C 15 10 15 \ 1 1 2 3 12 8 4 \ 2 2 4 6 9 6 3 \ 3 3 6 9 6 3 2 \ 4 4 8 12 3 2 1 \ 5 5 10 15 -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

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

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

The Market for Wapanzo Beans Quantity Demanded $\quad$$\quad$$\quad$$\quad$$\quad$ Price $\quad$$\quad$$\quad$ Quantity Supplied (millions of pounds $\quad$$\quad$$\quad$$\quad$$\quad$ (dollars per $\quad$ (millions of pounds peryear) $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ pound) $\quad$$\quad$$\quad$ peryear) Case 1 Case 2 Case 3 Case A Case B Case C 15 10 15 \ 1 1 2 3 12 8 4 \ 2 2 4 6 9 6 3 \ 3 3 6 9 6 3 2 \ 4 4 8 12 3 2 1 \ 5 5 10 15 -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 price of wapanzo beans will be

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

Which of the following decreases the supply of popcorn?

As the price of a pound of peanuts falls, the

-In mid-2008 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a__________ shift in the demand curve for a ticket on Continental because the price of a __________had risen.

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2010. This means that at the price in 2010, the

The quantity supplied of a good or service is the amount that

If income increases or the price of a complement falls, the

Growers expect that the price of a bushel of wheat will increase in one month. This belief results in

The demand for a good increases when the price of a substitute __________and also increases when the price of a complement ___________.

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are a normal good?

A normal good is a good for which demand