Exam 3: Demand and Supply

If the price is above the equilibrium price, then there is a

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and__________.

A change in the price of a good

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

Until 2007, the price of sport utility vehicles SUVs) rose and each year more were purchased. This experience suggests that

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

If the equilibrium relative price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?

A technological improvement lowers the cost of producing coffee. At the same time, consumersʹ preferences for coffee increase. The equilibrium price of coffee will

The quantity of CDs that firms plan to sell this month depends on all of the following except the

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

An increase in the price of jet fuel will__________ air flights and the equilibrium quantity of air flights will__________ .

-In the figure above, an increase in the quantity of oil supplied but NOT an increase in the supply of oil is shown by a movement from

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

Based on the above figure, which of the following is true?

-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 above figures show the market for gasoline. Which figure shows the effect of the end of a nine month strike by workers at all U.S. oil refineries?

Which of the following lists has variables that all shift a goodʹs demand curve?

-The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers. This change is shown in the figure as a shift from

If both the demand and supply increase, the equilibrium quantity__________and the equilibrium price__________ .

Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then