Exam 3: Demand and Supply

In 2014, the price of peanuts increased. In the market for peanut butter, this change led to ________ and which therefore ________ the price of peanut butter and ________ the quantity of peanut butter.

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a nation-wide strike by butchers and meat-packers?

As the price of a pound of peanuts falls, the

The existence of a shortage

The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices.

An increase in demand combined with no change in supply

During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousand each year. This set of results is a contradiction of the law of demand.

Explain the difference between a change in demand and a change in quantity demanded. What leads to each of these changes?

At prices above the equilibrium price, what occurs?

-The above figures show the market for hamburger meat. Which figure shows the effect when more farmers decide to raise cows that are processed into hamburger meat?

When the demand for blue jeans increases, what happens next?

When the price is below the equilibrium price, the quantity demanded

If the price of an Xbox player falls, then in the market for Xbox games

The price of jet fuel falls. This fall shifts the

An economist says: "The supply curve has two interpretations." What does the economist mean?

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the price of a soft drink is shown as a movement from point a to

Which of the following statements is CORRECT?

When the price of a good falls, the income effect for a normal good implies that people buy

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

If macaroni and cheese is an inferior good, an increase in income will