Exam 3: Demand and Supply

Many Southern farmers face a choice between planting peanuts or cotton. In 2014, farmers anticipated higher prices for cotton. In the market for peanuts in 2014, there would be ________ in the supply of peanuts, which leads to ________ in the price of peanuts and ________ in the quantity of peanuts.

-The above figures show the market for oranges. Which figure(s) shows the effect of new successful advertising campaigns to eat more oranges?

For normal goods which of the following explains why demand curves slope downward?

A consumer might consider in-line skates and elbow-pads to be

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of

Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are

Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each

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

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

When both the demand for a good increases and the supply of the good increases, the equilibrium quantity definitely increases.

-The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?

Consumers expect that the price of a gallon of gasoline will rise next week. As a result

If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

An increase in the number of consumers

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

The interaction of supply and demand explains

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

If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium quantity is Q* = (a - c) / (b + d).

An increase in technology for producing personal computers leads to