Exam 3: Demand and Supply 

Along a given demand curve, higher prices correspond to higher quantities demanded.

What type of price results in a shortage of a good?

Table 3.3 -According to Table 3.3, at a price of $16 per CD, there is

Which one of the following is TRUE?

Table 3.2 -According to the market data in Table 3.2, which price will generate a shortage of 50 units?

What type of price results in a surplus of a good?

Along a given demand curve, a lower price leads to a _________ quantity demanded.

An increase in the price of one good will increase the demand for its complement good.

The market demand for cotton clothing shifts to the right when

If dry cleaners increase the fees for cleaning services, economic theory predicts that

Which one of the following is TRUE?

Which of the following will shift the supply curve to the right?

When a good is sold at its equilibrium price, the buyer is not engaged in a voluntary exchange.

What condition characterizes a surplus?

Demand shows the quantities of a good which consumers will demand at various possible _________ .

Along a given supply curve, an increase in price leads to a higher _________ _________.

Prices indicate relative scarcity.

Suppose that air fares to Hawaii increase. What effect does this have on the market for hotel rooms in Hawaii?

What is the equilibrium price of a good?

The free market can never generate an equilibrium price because supply and demand are always at odds with one another.