Exam 3: Demand and Supply

Any given demand or supply curve is based on the ceteris paribus assumption that _______

The _______ is the quantity where quantity demanded and quantity supplied are equal at a certain price.

Various factors cause a demand curve to shift. List four different factors.

Interpret the following statement: "An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."

But nearly all supply curves share a basic similarity: they slope _______.

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as _______

After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:

What are five things that will shift a supply curve to the right?

Around the world, many countries have passed laws to keep farm prices higher than they otherwise would be. Why does this widespread practice continue?

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:

The downward slope of the demand curve again illustrates the pattern that as _______ rises, _______ Decreases.

The term "ceteris paribus" means that:

If a firm faces _______, while the prices for the output the firm produces remain unchanged, a firm's profits will increase.

When _______, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

Define consumer surplus and producer surplus.

When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _______.

A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and , _______ shown on the horizontal axis.

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the _______.

In economics, the demand for a good refers to the amount of the good that people:

When quantity demanded decreases in response to a change in price: