Exam 4: Demand and Supply

-Contractors can use plywood or brick to construct walls.Suppose the price of bricks increases.Which of the figures above best illustrates the effect of this change on the market for plywood?

Milk can be used to produce cheese or butter.If the price of a pound of butter rises,what happens to the supply of cheese?

If good weather conditions result in a larger than normal crop of peaches,then the

Quantity demanded (tons of cat food per year) Price (dollars per pound of cat food) Quantity supplied (tons of cat food per year) 52 1.00 15 46 1.50 26 43 2.00 34 40 2.50 40 35 3.00 44 -The above table gives the demand and supply schedules for cat food.If the price is $3.00 per pound of cat food,will there be a shortage,a surplus,or is this price the equilibrium price? If there is a shortage,how much is the shortage? If there is a surplus,how much is the surplus? If $3.00 is the equilibrium price,what is the equilibrium quantity?

Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward.Which of the following could have caused these shifts?

Consider the market for bread.If the price of wheat rises,then the

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

The downward slope of a demand curve

-The above figure shows the market for pizza.The market is in equilibrium when the cheese used to produce pizza falls in price.What point represents the most likely new price and quantity?

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

When the demand for a good decreases,its equilibrium price ________ and equilibrium quantity ________.

-The above figure illustrates the market for corn.If point "a" represents the original equilibrium and point "b" the new equilibrium,which of the following could have caused the change?

-In the above figure,the movement from point a to point b reflects

What leads to a decrease in the quantity demanded of a good or service?

Pizza and tacos are substitutes,and the price of a pizza increases.Which of the following correctly indicates what happens?

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $8,then

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

The "law of demand" refers to the fact that,other things remaining the same,when the price of a good rises,

If income increases and the demand for bus rides decreases,

-In the figure above,if point "a" represents the original equilibrium and point "b" the new equilibrium,then