Exam 3: Demand and Supply

Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. An increase in the number of suppliers would be shown as a movement from point a to a point such as

-The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?

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

Which of the following will NOT shift the supply curve for pick-up trucks?

By definition, an inferior good is a

Until 2007, the price of sport utility vehicles (SUVs) rose and each year more were purchased. This experience suggests that

An increase in the price of jet fuel will ________ airline travel and the equilibrium quantity of airline travel will ________.

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

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. Suppose the effect on the sellers was larger than the effect on the buyers. Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter.

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium

Which of the following statements is CORRECT?

If the price of a hot dog is $2 and the price of a hamburger is $4, then the

When supply decreases and demand does not change, the equilibrium quantity ________ and the equilibrium price ________.

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.

For a "change in the quantity supplied" but not "a change in supply" to occur, there must be a

If shoes rise in price, the demand curve for shoes ________ and the quantity of shoes demanded ________.

Flights to Paris are a normal good and people's incomes rise. At the same time, the price of jet fuel rises. The equilibrium price of a flight to Paris ________ and the equilibrium quantity of flights to Paris ________.