Exam 3: Demand and Supply

Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________.

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the "crunch enhancer." Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that is costs more to produce and consumers like it better?

What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?

Each point on the demand curve reflects

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

If the price of crude oil falls, the equilibrium price of gasoline ________ and the equilibrium quantity ________.

A ticket to see the Radio City Rockettes costs $90. You buy a ticket for $30 to see the New York Jets play football. The money price for

General Electric (GE) produces wind turbines that generate wind power. Over the past 10 years, the advances in technology used to produce wind turbines has resulted in

If the demand for bathing suits and supply of bathing suits both decrease, then definitely the equilibrium

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

The law of demand implies that if nothing else changes, there is

A change in which of the following would NOT shift the supply curve for sneakers?

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

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

-In the above figure, if D₂ is the original demand curve and consumers come to expect that the price of the good will rise in the future, which price and quantity might result?

A substitute is a good

When the price of a normal good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.

If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?