Exam 3: Demand and Supply

New production technology in the manufacture of plasmatelevision screens has reduced the number of defective screens.What effect will this have in the market for plasma televisions?

Suppose that consumers begin to believe that the price ofhousing will be lower next period. What will happen in themarket for housing as a result of these expectations?

A change in price is reflected by a movement along the samedemand curve while a change in demand refers to a shift of theentire demand curve.

A decrease in income causes demand for a normal good to________, and an increase in income causes demand for aninferior good to ________.

Which of the following could cause an increase in the demandfor gasoline?

In the early 1980s, movie rentals averaged $5 a night; by theearly 1990s that average was $1 per night. This is an example ofa supply curve shifter based on:

(Figure: Producer Surplus) Refer to the figure. What is thechange in producer surplus if the price rises from $2 to $3 perunit?

Which one of the following choices would cause the demandcurve for an inferior good to shift to the left?

(Figure: Supply Curve) Refer to the figure. A vertical readingof the figure indicates that:

In the oil market, an increase in the wage of oil workers will:

If the university president valued a parking space close to theadministration building at $500 and paid $30 for a parkingpermit, he would receive consumer surplus equal to:

Which of the following factors causes a decrease in supply?

What does the law of supply state?

A subsidy is a:

(Figure: Demand Shift) Which of the following factors wouldcause the change in the figure? Figure: Demand Shift I. an increase in the price of a complement goodII. an increase in production costsIII. an increase in the price of a substitute goodIV. an increase in income for an inferior good

Which of the following are factors that shift the demand curve?