Exam 3: Demand and Supply

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

A complement is a good

-The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?

-The above figures show the market for oranges. Which figure shows the effect of great growing conditions that produce an above-average sized crop?

List the factors change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor.

A change in which of the following shifts the demand curve?

The price of a bag of corn chips is $3, and the price of a bottle of soda is $1. What is the relative price of a bag of corn chips?

A decrease in the quantity supplied is represented by a

Young drivers often buy used cars. An increase in the legal driving age to twenty-one would result in a leftward movement along the demand curve for used cars, whereas lowering the age to fifteen would result in a rightward movement along the demand curve.

In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________.

The Market for Wapanzo Beans -Refer to the table above. Suppose that in normal years demand is represented by Case 2 and supply is represented by Case B. If there is exceptionally good growing weather in the wapanzo bean growing region then supply will ________ and demand will ________.

A severe drought has damaged this year's lettuce crop. The initial effect on the lettuce market is a

To say that "supply increases" for any reason, means there is a

The opportunity cost of a good is the same as its

An increase in price results in increase in supply but not an increase in the quantity supplied.

Jeep Cherokees are a normal good. If people's incomes increase, the direct result will be

If consumers but not producers expect that the price of soda will rise in November, the

When economists speak of preferences as influencing demand, they are referring to

The opportunity cost of a hot dog in terms of hamburgers is the

-In the above figure, a price of $15 per dozen roses would result in a ________ so that the price of roses will ________.