Exam 3: Demand and Supply

-The above figures show the market for gasoline. Which figure shows the effect of motorists increasing the number of times they take the bus to work rather than driving their own cars?

A relative price is the

The "law of demand" predicts that, other things being equal

If the money price of hats rises and no other prices change, the I. relative price of a hat rises. II. opportunity cost of a hat rises.

-Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?

When a market is in equilibrium

Joe pays $8,000.00 in tuition. The 8,000 dollar tuition Joe pays is an example of what economists call

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?

An increase the expected future price of a good

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There were about 70,000 people on the waiting list to buy season tickets in 2010. Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the

If the price of chocolate chip cookies rises, then

Which of the following is NOT one of the factors that influences the supply of a product?

Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift

In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. In the current market for peanut butter, the price falls and the quantity decreases. This set of results means that

Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the

Inferior goods are those for which demand increases as

A bakery can produce either cakes or cookies. If the price of cookies rises, then

All grapefruit juice producers have decided to blend tangerine juice with the grapefruit juice. This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice. What will happen to the equilibrium price and quantity of the new "blended" grapefruit juice now that it costs more to produce but consumers like it better?

-The figure above shows the demand for fruit snacks. Which movement reflects a decrease in quantity demanded but NOT a decrease in demand?