Exam 3: Demand and Supply

-Refer to the above figure. Which panel demonstrates the law of supply?

Other things being equal, an increase in the price of a good leads to a decrease in the amount people purchase. This is known as

Market demand is

In 1950, a phone call at a pay phone cost 5 cents and a first-class stamp cost 3 cents. Today, those prices are 50 cents and 44 cents respectively. What has happened to the price of each good relative to the other? What has happened to the price of each good relative to all other goods?

The law of demand is based on the observation that

An increase in demand is shown graphically by

The demand curve shows the relationship between quantity demanded and

When there is an excess quantity of a product supplied, there will be

An increase in the quantity demanded is shown by

The law of supply states that there is

A per-unit government subsidy to producers of a good tends to

Which of the following will cause a rightward shift of the demand curve?

According to the law of demand, an increase in the price of a good causes

The law of demand shows that there is

If an increase in the incomes of people who live in the Los Angeles area leads to an increase in the demand for season tickets for games played by the Los Angeles Lakers professional basketball team, then these season tickets are

Which factor would cause a movement along the demand curve for pizza?

If two goods, J and K, are complements, then which of the following statements is FALSE?

If the price of personal computers were to rise, then the demand for printers would decrease because personal computers and printers are

The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT

The law of demand tells us that people will buy more of a good if