Exam 3: Demand and Supply

Which of the following will cause the demand curve for beer to shift right?

Assuming coffee and cola are substitutes, if the price of coffee rises,

-In the above figure, what are the equilibrium price and quantity?

Suppose it is discovered that consumption of butter leads to a longer life. This information would lead to

Suppose a shortage for good X exists. Given this information, we know that

If there is a shortage in a free market, then

The law of supply includes the statement "other things being equal." These other things include all of the following EXCEPT

The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook

In the above figure, a surplus exists in the gasoline market when the price is

For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply

When producers anticipate that the price of their product will increase in the future,

-What situation gives rise to a surplus?

Suppose that the demand curve for apples is downward sloping and the price per bushel increases from $6.50 to $7.50. We would then expect

What would happen in the market for prescription drugs if people begin to view over-the-counter remedies as a good substitute for prescription medications?

-Refer to the above figure. At a price of four cents, a(n)________ of bubble gum will exist in the market.

Suppose that short skirts that were fashionable in the 1990s become unfashionable in the late 2000s. If other factors were held constant, then there would be

When a shortage exists,

If consumers expect that the price of pretzels will decrease next week, what would happen today?

Here's what we know about last year's weekly demand for 2-night DVD rentals in the Village of Harmony: When P = $3, Qd = 100; at P = $5, Qd = 75; and when P = $7, Qd = 50. This year the village population has increased by 25%. What impact is this most likely to have?

Assuming that turkey, chicken, pork, and beef are substitutes, suppose that the price of turkey has fallen. This will, other things being equal