Exam 3: Demand and Supply

-The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?

A substitute is a good

A changes in which of the following shifts the demand curve for hamburgers?

-The figure above shows the market for airline tickets. If airline tickets are a normal good, then the recession in 2008 that caused people's incomes to decrease led to a shift from

The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises

Cable television companies must pay increased charges by the networks for the programs the cable companies carry. As a result, the price of cable television rises. Thus

-The above figure shows the market for hamburger. Which figure shows the effect of an announcement by the U.S. Food and Drug Administration (FDA)that eating hamburger causes early death?

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 the price of a candy bar is $1 and the price of a fast food meal is $5, then the

In 2006, the base price of a Hummer SUV was about $30,000. By 2008 as gasoline prices increased,

When does a surplus occur?

In the market for bicycles, explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes.

-Based on the above figure, which of the following is TRUE?

During the past twenty years, the prices of prescription drugs, relative to the prices of other goods, have risen, yet Americans buy more prescription drugs than ever. This might be because

-The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?

A supply curve shows the relation between the quantity of a good supplied and

In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same.

If the quantity demanded exceeds the quantity supplied, then there is

A relative price is

"If the price of crude oil falls, the demand for gasoline will increase, so people will by more gas and the price of gas will go up." Is this statement true or false? Explain.