Exam 3: Demand and Supply

The quantity of iPods that people plan to buy this month depends on all of the following except the

When there is a surplus in the market, the quantity sold is

If the price of a hot dog is $2 and the price of a hamburger is $4, then the

In March, the quantity of orange juice sold in the town of Jackson was 3000 cartons and the price $3) In May, the quantity of orange juice sold in the town of Jackson was 3500 cartons and the price was $3.20. This change in the price and quantity sold could have been the result of

-The above figures show the market for gasoline. Which figures) shows the effect of a freezing cold winter which drives up the price of home heating oil a substitute in production for gasoline because each is made from crude oil)?

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

You observe that in the market for coffee that both the equilibrium price of coffee and the equilibrium quantity have increased. You predict that the demand for coffee

The price of jet fuel falls. This fall shifts the

-The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and peopleʹs incomes increase. At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is__________ than the equilibrium quantity and there is a __________of jeans.

During the last decade, the price of shoes rose substantially yet people bought more pairs of new shoes each year. This experience suggests that the

If a market is NOT in equilibrium, then which of the following is likely to occur?

Ham and eggs are complements. If the price of ham rises, the demand for eggs will

The opportunity cost of a hot dog in terms of hamburgers is the

For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts.

Price (dollars per pound of cat food) Quantity demanded (tons of cat food per year) Quantity supplied (tons of cat food per year) 1.00 52 15 1.50 46 26 2.00 43 34 2.50 40 30 3.00 35 44 -The above table gives the demand and supply schedules for cat food. If the price is $1.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?

-In the above figure, if D₂ is the original demand curve for a normal good and income decreases, which price and quantity might result?

The law of demand implies that if nothing else changes, there is

-In the above figure, if D₂ is the demand curve, then a price of P₃ would result in

The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price

Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish and the equilibrium quantity .