Exam 3: Demand and Supply

A decrease in quantity demanded because of an increase in price is represented by a

The quantity demanded of a good or service is the amount that

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

When supply and demand both increase, the

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a ________ shift of the ________ curve for bottled water.

Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

The quantity demanded is

Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be

-The equilibrium price in the above figure is

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the "crunch enhancer." Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that is costs more to produce and consumers like it better?

Your friend Tony opened a pizzeria. You helped him to advertise his pizza, which is in fact the best pizza in town. As a result, the demand for Tony's pizza increases and your friend, noticing lines of customers, raises the price of his pizza. But then he fears that the higher price will cause demand to decline, which will cause the price to drop. Is Tony right in his analysis of the situation? Explain.

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

-The above figures show the market for hamburger meat. Which figure shows the effect of a newly invented machine which grinds beef at twice the speed previously possible?

At a price of $10 in the above figure, there is

Which of the following influences does NOT shift the supply curve?

In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the

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

-In the figure above, which movement could be the result of the development of a new, more efficient refining technology?