Exam 3: Demand and Supply

Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of an increase in the price of milk on the demand for soft drinks.

Which of the following is NOT held constant while moving along a supply curve?

If income increases or the price of a complement falls, the

Which of the following best reflects an increase in quantity demanded and not an increase in demand?

-The above table gives the demand and supply schedules for cat food. If the supply increases by 20 tons at every price, what is the new equilibrium price and quantity?

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ $40 and the quantity ________.

If the price of product X falls and this change increases the demand for product Y, then

If the price of chicken falls, then in the market for beef

The opportunity cost of good A in terms of good B is equal to the

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

In 2014, the price of peanuts was rising, which led peanut butter sellers to expect the price of peanut butter would rise in the future. Consequently, in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.

Between 2000 and 2015, the price of a PC fell and the quantity of PCs sold increased. Which of the explanations below is consistent with these facts?

People buy more of good 1 when the price of good 2 rises. These goods are

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

The price of a DVD rental is $1.50 and the price of a downloaded movie is $1.00. If the price of a DVD rental increases by $0.50, the relative price a downloaded movie

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.